Judge to decide champ’s financial reorganization
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Antonio Tarver made quick work of Roy Jones Jr. on Saturday night, but a tougher battle is expected to await Tarver in bankruptcy court. Eight days before his second-round knockout of Jones, the 35-year-old Tarver filed for Chapter 11 bankruptcy in Tampa, Fla., listing 19 creditors owed about $895,000. Although Tarver took home a payday of $2.2 million Saturday, it doesn’t necessarily mean that the money will be used to pay off his four main creditors — the Internal Revenue Service (owed $367,000), Star Boxing ($228,087), John Morgan ($150,000) and Mandalay Bay Resort & Casino ($60,000). In order to file for bankruptcy before the fight, Tarver had to demonstrate that he did not have the financial wherewithal to collectively pay off all of his creditors. How Tarver’s money is reorganized and distributed under the filing will be up to a judge, who could take into account Tarver’s current winnings. Tarver’s first day in court is scheduled for June 10. Tarver filed for bankruptcy in part because the promotion company that has him under contract, Star Boxing, had exerted pressure on him to immediately pay his debts, according to his attorney, Bill Yanger. “Star Boxing and [its promoter] Joe DeGuardia placed my future and the future of my family in jeopardy,” Tarver told ESPN.com, in a statement released by Yanger. “My first priority has always been to protect my family. DeGuardia left me with no choice. The rest is up to the lawyers and the judge.” According to a recent arbitration victory by Star Boxing over Tarver, the fighter owed DeGuardia’s company $228,087 as a result of breaching the contract with the company in allowing another promoter, DiBella Entertainment, to promote his fight against Montel Griffin in April 2003. The arbitration ruling that upheld the contract with Star Boxing currently is being appealed by Tarver in the New York Court of Appeals. Not only were officials with Star Boxing putting pressure on Tarver for the owed money, they also sought to have their stake of Tarver’s payday from Saturday’s Jones-Tarver II directly withdrawn from his paycheck. The fight was promoted by Don King after he won the rights to a fight in an open bidding war, but since Tarver is under contract with Star Boxing, Star was still due $530,000 for the fight, according to DeGuardia. King himself is owed $36,000 from Tarver, according to the bankruptcy court filing. |