Derrick James, Errol Spence Embroiled In Two-Way Lawsuit Amidst Bitter Split
Derrick James and Errol Spence have not only parted ways but have taken legal action against one another.
The Ring has confirmed that James filed a lawsuit against his now former client, seeking damages in excess of $5,000,000. A 19-page Breach of Contract, Fraud and Misrepresentation complaint was filed on April 17 with the 191st Judicial District Court of Dallas County, Texas.
Spence filed a counter lawsuit on the same day, seeking declaratory relief, according to a complaint also obtained by The Ring.
The common thread of both disputes stems over a disagreement on James’ due compensation from Spence’s earnings. James, the universal 2022 Trainer of the Year, has guided the entirety of Spence’s 11-plus year pro career.
At the center of the complaint is the amount James believes he is still owed for Spence’s July 29 superfight versus Terence ‘Bud’ Crawford (40-0, 31 knockouts). Spence (28-1, 22 KOs) suffered a ninth-round knockout in his first career defeat, which saw Crawford fully unify the welterweight titles.
According to statements and posted text exchanges, Spence earned roughly $25,000,000 between his guaranteed purse and pay-per-view backend.
James was paid $350,000 from that fight. Both complaints note that Spence based that payment on ten-percent of his $2,500,000 guaranteed purse ($250,000), plus a $100,000 bonus.
The James side insists that the ten-percent payment should be based on total revenue earned by his client. That same viewpoint is not shared by Spence and his legal team.
James helped Spence prepare for the 2012 Olympics and remained on board as his pro trainer. The two entered a standard fighter-trainer agreement.
“Mr. Spence… agreed to pay Mr. James 10% of his guaranteed fight purse for the work, labor, and/or services provided by Mr. James,” read the complaint filed by James. “It is standard in the boxing industry that a fighter’s purse includes a guaranteed amount for the actual prize fight, [It] is typically paid by the promoter and a percentage of the pay-per-view (“PPV”) revenue when the fighter’s skill allows him to demand and negotiate such.”
“The pay received from the PPV revenue… is commonly referred to as getting paid on the “backend” because the revenue is calculated after the fight. [It] is based on a previously agreed upon percentage that the two fighters negotiate before the fight.”
The matter was further addressed by both parties in person earlier this year.
“On February 13, 2024, Mr. Spence and Mr. James spoke for the first time about the guaranteed amount Mr. Spence received for the Crawford fight,” the complaint stated. “During that conversation and for the first time in their over 11-year professional relationship, Mr. Spence asserted that Mr. James was not entitled to receive 10% of his guaranteed purse. Based on that interpretation, Mr. Spence asserted someone named “Al” told him that paying Mr. James $350,000.00 for the Crawford fight in exchange for his training services was “generous.
“However, no one named “Al” was present when Mr. James and Mr. Spence originally entered into their agreement nor was anyone named “Al” present when Mr. James provided training services to Mr. Spence for each fight. Thus, any alleged reliance by Mr. Spence on advice from someone named “A1” regarding Mr. James’ compensation is misplaced.”
The conversation prompted James to send a legal letter to Spence on February 14, one day later. In it, he demanded full disclosure on fight purses for Spence’s PPV headliners versus Mikey Garcia, Shawn Porter, Danny Garcia, Yordenis Ugas and Crawford.
According to the complaint, Spence contacted James via phone and “admitted to Mr. James during a phone call that
Mr. Spence was paid “25 mil.” for the Crawford fight as his guaranteed purse. Additionally, he admitted that he was not “true” to Mr. James when he attempted to pay Mr. James $350,000.00 as compensation for the Crawford fight.
“Mr. Spence said he was “man enough and honest and truthful” enough to admit that following the Crawford fight he “did rob” Mr. James by paying him $350,000.00 and he “had to own up to it.” Mr. Spence acknowledged that “it was his wrong” and he had to “own up to [his] s**t.”
A text exchange on February 16 was captured via screenshots and submitted as evidence. James requested a wire transfer for the remaining amount he felt he was owed, and provided his bank information. Spence asked for the specific dollar amount still owed. He then acknowledged that James was still owed $2,150,000 since he already paid $350,000.
Spence requested a one-week period to pay since the lacked the liquid funds to satisfy the requested amount.
In lieu of payment, Spence instead responded on February 20 with bout agreements for the aforementioned PPV main events. The following guaranteed purse amounts were claimed by Spence as the basis for James’ ten-percent commission for each:
- Mikey Garcia (March l6, 2019) – $3,000,000.00;
- Shawn Porter (September 28, 2019) – $1,500,000.00;
- Danny Garcia (December 5, 2020) – $1,500,000.00;
- Yordenis Ugas (April 16, 2022) – $2,000,000.00; and
- Terrence [sic] Crawford (July 29, 2023) – $2,500,000.00.
James pointed to this exchange as the the first sign that “he was not being paid 10% of Mr. Spence’s guaranteed fight purse for the aforementioned fights. In fact, he learned that was not even paid 10% of the bout agreement for the fight against Mikey Garcia (March 16, 2019).”
It is also contended in the complaint that Spence refused to fully disclose his true earnings from each of those five fights. His own research—through investigation and other legal means—provided the foundation for his damages sought in excess of $5,000,000.
In addition to that amount, James also seeks:
- Full accounting;
- Pre-and-post judgment interest on any and all amounts awarded;
- Reasonable and necessary Attorney’s fees;
- Court costs;
- Punitivie and exemplary damages; and
- Such and other further relief as Plaintiff may be justly entitled.
Spence had filed his own lawsuit filed with the 68th Judicial District in Dallas County by that point. The 33-year-old Texan southpaw seeks declaratory judgment and has already filed a motion to dismiss James’ complaint.
The former unified welterweight titlist insisted throughout his nine-page complaint that James has been properly compensated for each of their 29 pro bouts together. His claim is based on their same oral agreement specified in James’ lawsuit.
However, Spence’s stated interpretation was that James was not entitled to income received beyond his contracted fight purses.
“Spence is grateful for James’s longtime assistance,” the complaint read. “But [he] is disappointed by James’s recent attempted overreach to try and obtain payment beyond their longstanding agreement and exceeding the scope of the services that James provided.
“Because Spence performed under the parties’ agreed-upon fee arrangement by paying James ten percent of his fight purse, as understood by and between the parties, Spence does not owe James any unpaid compensation.”
Spence pointed to his first fight purse in his December 2012 pro debut. According to court documents, he was paid $2,500 and paid $250 to James from that amount.
That trend continued to throughout his career, even as Spence’s purses considerably increased as did his in-ring accolades. It included his wins over Mikey and Danny Garcia, Porter and Ugas, all of which headlined PPV events. From that batch, James was given a bonus on top of his $150,000 payment from the Danny Garcia fight in December 2020. The bout was Spence’s first after he recovered from an October 2019 single car crash in his Dallas home region.
Spence honored the same oral agreement for the Crawford fight. Court documents indicate that Spence hand-delivered a $350,000 check on September 3 to James, who “accepted the payment with no complaint. Thus, the standard course of performance between Spence and James occurred, for a 29th time.”
The two complaints are consistent that more than six months passed before James first alleged he was due ten-percent of Spence’s total earnings.
A declaratory judgment is now sought by Spence to remedy the controversy. Spence declared that:
- The oral agreement between Spence and James defined the parties’ relationship and governed the monies Spence was to pay James as consideration for his boxing training services, as supported by the parties’ course of performance.
- The essential terms of the oral agreement were that James would provide boxing training services to Spence as he prepared for fights, and in exchange, as consideration for these services, Spence would pay 10% of his fight purse (meaning the money Spence was to receive under a promoter-contestant contract for participating in the boxing contest) to James.
- The parties’ oral agreement does not obligate Spence to pay James based upon 10% of total fight revenue, such that Spence is not required to pay James 10% of revenues tied to a fight generated from pay-per-view or otherwise.
- Per the oral agreement, Spence does not owe James any unpaid compensation.
Spence also seeks recovery of all incurred attorney’s fees, court costs and all other deemed further relief.
A notice of Order to Dismiss was also filed by Spence. According to court record, an attempt was made to serve James and his attorney. Interestingly, the date set aside for that hearing is July 29, one year to the day of Crawford-Spence.
The Ring has additionally learned that Spence has interviewed at least three trainers to take over the reins. The No. 1-rated Ring welterweight contender plans to return in late summer or early fall.
Jake Donovan is a senior writer for The Ring and vice president of the Boxing Writers Association of America.
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