Retired world champion boxer Steve Collins breached a management agreement with British promoter Mr Barry Hearn and his company, the High Court in Dublin heard yesterday. Collins is denying the claim.
The Hearn side claims that Collins, after beating Chris Eubank at Millstreet, Co Cork, in March 1995, to win the WBO super-middleweight title, had entered, without its knowledge, into negotiations with rival promoter Mr Frank Warren, and had ultimately entered into an agreement with him.
Mr Hearn and his company, Matchroom Boxing Ltd, both with addresses at Western Road, Romford, Essex, England, are suing Collins, of Pine House, Navan Road, Dublin.
Mr Justice O'Sullivan was told the main issue was whether a one-year management agreement with Collins was extended for a further year from May 1995.
Mr Hearn claims Collins fought three fights during the period of the alleged extended agreement. He says he is entitled to 25 per cent of the monies paid to Mr Collins for those fights.
It is claimed that Collins's purse from a second fight against Eubank in Cork in September 1995 was £1.2 million and that he received a further £1 million for two subsequent fights.
The court heard that Mr Hearn was appointed Collins's manager for one year from May 12th, 1994, following a written agreement between the two men dated May 9th, 1994. It was claimed the management agreement was conditional on Collins being successful in a World Boxing Organisation fight in May 1994. That condition was fulfilled as Collins became champion.
The Hearn side claims there was a "manuscript agreement", dated January 15th, 1995, signed by Collins on February 17th, 1995, and then known as "the bout agreement".
Under this agreement, it is claimed, Mr Hearn would waive management and training deductions for a contest between Collins and Eubank for the WBO super-middleweight purse of £150,000. Should Collins beat Eubank and win the title, it was agreed he would extend the management agreement for a year. The Hearn side claims the management agreement was extended for one year.
The Hearn side claims that, in a letter of June 6th, 1995, the boxer alleged that Mr Hearn had acted in breach of "our previous agreement" and asked him to treat the letter as "formal notice of termination".
Collins admits that he executed the "manuscript agreement". However, he denies that the preconditions to it were satisfied. He is contending the "manuscript agreement" was executed without independent legal advice and that it was subject to amendment or cancellation in the light of subsequent legal advice.
Collins admits he entered into the "bout agreement" with Matchroom Boxing Ltd but denies that he did so with Mr Hearn. He denies agreeing that he would extend the management agreement for a year should he defeat Mr Eubank.
He also denies the other claims and says that if the management agreement was extended, Mr Hearn remained subject to obligations and that he had acted in breach of them.
Mr Paul Gallagher SC, for the plaintiffs, said Mr Hearn was Collins's manager since January 1993. A written agreement was entered into in May 1994. Under the skilled management of Mr Hearn, Collins moved from a career trough in January 1993 to a point where he was going to be WBO champion. After Collins became champion in March 1995, he entered into negotiations with Mr Warren.
Mr Gallagher said Mr Hearn had paid for and discharged out-goings for Collins and provided a trainer, a gym, a back-up team and arranged fights. He had not exercised his right to 25 per cent of receipts except for one fight when Collins became champion. He received about £13,500 - a quarter of Collins's purse - for that fight. Expenditure incurred in advance of that period far exceeded that sum.
Mr Gallagher said that following the purported termination of the management agreement, Collins had entered into an agreement with Mr Warren which involved four major fights.
Three of these fights took place before the end of the extended agreement in May 1996, and the calculation of the damages to which Mr Hearn was entitled was 25 per cent of the monies received by Collins.
During correspondence opened during yesterday's hearing, it was stated that when Collins wrote saying the agreement was terminated, Mr Hearn replied that he was staggered by the contents of the letter and had said he had taken Collins out of the boxing "wilderness".
It was stated that Mr Hearn accepted Collins was a very skilful fighter and of great ability. However, Mr Hearn and his organisation had played a very significant role in helping his career.
Mr Colm Allen SC, for Collins, said it was not fair for Mr Gallagher to seek to demonise Collins and damnify him.
The hearing continues.