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Troubles are increasing for DAZN Group by the day. The global sports subscription service and media company is under financial pressures from various quarters.
Company has started laying off staff, some of the existing media rights deals are getting cancelled and now they are getting sued by four weight world champion Saul ‘Canelo’ Alvarez for breach of contract.
Alvarez to sue DAZN for breach of contract
Alvarez is suing streaming service DAZN and promoter Oscar de la Hoya for at least $280m.
Papers filed with the US district court in California state the Mexican is suing for “breach of the single largest contract in the history of boxing”. In 2018, Alvarez signed a $365Mn deal for 11 fights on DAZN.
Alvarez’s claim details 11 complaints, including breach of contract, negligent interference and fraud.
The legal papers – seen by BBC Sport – request a jury trial and state DAZN and De la Hoya’s Golden Boy Promotions organisation have “broken the promises they made to each other, Alvarez, and boxing fans”.
Sports Business : DAZN lays off more than 50 people in US & Brazil
DAZN Group is laying off around 50 staff at its operations in the US and Brazil in a bid for profitability in the two countries and in its latest response to the impact of the Covid-19 pandemic on its business.
The redundancies affect approximately 2 per cent of DAZN’s 2,600 staff worldwide.
DAZN will continue to be active in both countries but will now pivot the respective offerings around the new global service and not on locally-acquired premium rights.
DAZN has been scaling back its business in Brazil in recent months, exiting its deal for football’s Copa Sudamericana, the second-tier clubs competition in South America, and negotiating with the IMG agency to terminate its Serie A contract while also looking to do the same with its Ligue 1 rights.
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