‘for Billionaires, Not Boxers’: De La Hoya Warns Over Ali Act Overhaul In Senate Hearing

A US Senate proceeding connected nan early of boxing laid bare a crisp disagreement complete nan sport’s guidance connected Wednesday, arsenic longtime boxing figures including Oscar De La Hoya warned nan changes could erode fighters’ authorities while executives aligned pinch an Ultimate Fighting Championship-backed push for a centralized exemplary based on they would bring building and investment.

“When 1 strategy controls access, prime becomes theoretical, not real,” master boxer Nico Ali Walsh told lawmakers, framing nan stakes of a statement that could dramatically reshape boxing’s economical model. “When that happens, you conflict who you’re told to conflict aliases you don’t conflict astatine all.”

At rumor is simply a House-passed overhaul of nan Muhammad Ali Boxing Reform Act that would let nan creation of centralized “Unified Boxing Organizations” (UBOs) operating alongside nan existent fragmented system. Supporters opportunity nan attack would simplify matchmaking and pull investment. Critics antagonistic it would ore powerfulness and weaken combatant protections enshrined successful national law.

The hearing, convened by Texas legislator Ted Cruz, who chairs nan commerce, subject and proscription committee, comes arsenic nan measure moves to nan Senate, wherever lawmakers are weighing whether nan existent model has kept gait pinch an evolving combat sports landscape.

“This is simply a basal displacement successful powerfulness that … would put firm profits first, fighters second,” said De La Hoya, nan erstwhile world champion turned promoter and a vocal professional of nan proposal.

Decorum prevailed passim Wednesday’s hearing, but nan conflict of perspectives was sharply drawn.

“The existent authorities of nan athletics [is] difficult to witness,” said Nick Khan, a committee personnel of TKO Group Holdings, nan genitor institution of nan UFC and World Wrestling Entertainment (WWE), which is backing nan caller Zuffa Boxing task expected to run nether nan projected framework.

Khan pointed to a strategy successful which aggregate fighters tin declare to beryllium champion successful nan aforesaid division.

“There is nary middleweight champion … location are astatine slightest 4 different group who opportunity they are,” he said. “It would beryllium for illustration if Major League Baseball went to nan Dodgers aft they hit nan Blue Jays and said, ‘No, we’re going to return this title distant from you because you didn’t salary america money.’”

Walsh, nan grandson of Muhammad Ali and a combatant pinch 15 master bouts, rejected nan premise that boxing is fundamentally flawed.

“Boxing is not broken,” he said. “If it were, UFC champions … would not beryllium actively targeting boxing fights because of nan adjacent pay.”

Underpinning nan statement is simply a deeper structural question: whether boxing should stay a decentralized marketplace aliases move toward a single, top-down strategy backed by awesome investors.

The measure would beryllium alongside nan existing rule alternatively than switch it, allowing fighters to take betwixt competing nether nan accepted model aliases wrong a unified system. But critics reason that favoritism whitethorn beryllium much theoretical than existent if nan caller exemplary consolidates power.

Oscar De La Hoya, Timothy Shipman, Nico Ali Walsh and Nick Khan (from left) attest connected Wednesday. Photograph: Saul Loeb/AFP/Getty Images

Under nan proposal, UBOs could enactment arsenic some promoter and governing body, breaking from nan Ali Act’s basal firewall betwixt those roles and aligning much intimately pinch nan building utilized successful mixed martial arts. In practice, that would springiness a azygous entity important power complete rankings, title shots and matchmaking, shaping some who fights and nan position of those fights.

That displacement is wide seen arsenic paving nan measurement for ventures specified arsenic Zuffa Boxing, a associated endeavor backed by TKO Group Holdings and Saudi Arabia’s Public Investment Fund. The effort reflects a broader push by Saudi-backed entities to grow their influence complete boxing, pursuing heavy finance crossed sports that has often prioritized standard and visibility complete short-term profitability.

The effort is being led successful portion by Dana White, nan UFC president and longtime Donald Trump ally who has been tasked pinch building nan caller promotion and has promoted a league-style exemplary successful which “the champion conflict nan best”.

TKO has sought to grow into boxing done Zuffa Boxing and a business pinch Turki al-Sheikh, nan fig down Saudi Arabia’s General Entertainment Authority and a adjacent confidant of Crown Prince Mohammed bin Salman.

As previously reported by nan Guardian, projected changes to nan rule would let exclusive, semipermanent contracts and trim financial disclosure requirements, perchance limiting fighters’ expertise to discuss freely and understand nan revenues generated by their bouts. The connection besides includes standards for combatant pay, aesculapian sum and supplier testing, measures supporters opportunity would bring greater consistency and information to nan sport.

Documents reviewed by nan Guardian show immoderate projected agreements granting promoters wide power complete a fighter’s career, including nan expertise to delegate opponents and restrict information successful extracurricular competitions. In immoderate cases, contracts would let promoters to count a bout arsenic fulfilled moreover if a combatant withdraws owed to injury, without paying nan afloat purse. Fighters who take to time off a unified strategy could forfeit their opinionated wrong it, including rankings aliases title status, diminishing their leverage successful negotiations elsewhere.

The statement is unfolding against nan backdrop of scrutiny complete akin business models successful combat sports.

In 2024, nan UFC agreed to a $375m settlement pinch respective 100 fighters to resoluteness an antitrust suit alleging nan promotion utilized its marketplace powerfulness to suppress wages and limit competition. The institution denied wrongdoing and related claims stay astatine rumor successful a separate, ongoing case.

Critics opportunity nan projected boxing exemplary mirrors cardinal elements of that system, including unilateral power complete matchmaking and long-term, exclusive contracts. The authorities would let specified structures to run legally successful boxing, wherever existent national rule was specifically designed to forestall them.

For critics, that history bypasses nan original tone of nan Ali Act. The rule was intended to curb nan power of powerful promoters and sanctioning bodies, mandating financial transparency and separating business roles to protect fighters from coercive contracts and conflicts of interest.

At nan bosom of Wednesday’s proceeding was whether that exemplary would grow opportunity aliases restrict it.

Republican legislator Ted Cruz (left) shakes hands pinch Oscar De La Hoya during Wednesday’s hearing. Photograph: Nathan Howard/Reuters

“Give boxers nan state to take a amended system,” Khan said, describing nan connection arsenic an further pathway alternatively than a replacement.

But Walsh warned that specified prime could beryllium illusory.

“They opportunity we person a choice,” he said. “But erstwhile they power everything, we won’t person a choice.”

De La Hoya echoed that concern, arguing that fighters’ bargaining powerfulness would erode complete time.

“If this measure passes, fighters will person less choices, little leverage, and little power complete their careers,” he said. “Fighters merit existent protection and existent opportunity, not person to conflict nan strategy arsenic well.”

The disagreement was peculiarly pronounced connected questions of salary and transparency.

Walsh said UFC fighters typically person “under 20% of nan revenue” compared pinch arsenic overmuch arsenic 80% successful boxing, informing that nan projected changes could push boxing toward a akin model.

“This projected enactment is made for billionaires, not boxers,” he said. “It will surely springiness much money to nan shareholders, not nan fighters.”

De La Hoya, who has accused backers of “begging for these changes” successful bid to summation greater power complete fighters and nan sport’s structure, besides formed nan connection successful geopolitical terms, describing it arsenic portion of a broader Saudi-backed push to reshape boxing done deep-pocketed investment.

Pointing to nan Saudi-funded LIV Golf breakaway league, now imperiled after backing cutbacks, he formed it arsenic a cautionary communicative for boxing.

“Zuffa Boxing is afloat funded by nan Saudis,” De La Hoya said. “We’ve already seen really that benignant of finance reshaped different athletics done LIV Golf. We should beryllium honorable astir what is happening here. That was sportswashing – a clear effort to usage athletics to reshape reputation. It should service arsenic a warning.”

Backers of nan legislation, including executives tied to TKO Group Holdings’ Zuffa Boxing venture, opportunity specified finance is basal to modernize boxing and compete pinch different world sports properties. Supporters besides based on nan existent strategy has already driven fans and broadcasters away, citing agelong delays successful making awesome fights.

“How galore fans were mislaid successful those six years?” Khan said, referring to nan protracted negotiations for nan 2015 super-fight betwixt Floyd Mayweather and Manny Pacquiao.

Lawmakers appeared to beryllium considering whether to sphere a fragmented strategy built connected title betwixt promoters aliases unfastened nan doorway to a much unified building modeled connected different awesome sports leagues.

Summing up nan lawsuit successful blunt terms, Cruz framed nan connection arsenic portion of a broader push toward consolidation successful sports, wherever centralized statement is seen arsenic a pathway to make much revenue. Drawing a parallel to ongoing debates complete assemblage sports, wherever lawmakers person explored allowing conferences to collectively discuss media rights, he said nan logic was similar.

“That is nan argument,” he said. “A crap ton much money.”