Frampton ‘came to belief McGuigans were ripping him off’ after being hit by £397k VAT bill, court hears
FORMER world champion Carl Frampton’s deteriorating relationship with ex-manager and promoter Barry McGuigan ended after the taxman called at the boxer’s home about a £397,000 company VAT bill, the High Court heard yesterday.
By the time they parted last summer the Belfast fighter believed Mr McGuigan was “ripping him off and concealing it”, a judge was told.
Mr Frampton, who is suing over allegedly withheld earnings, has also said the cracks first appeared when he was allegedly “fobbed off ” about being paid after defeating rival Scott Quigg in February 2016.
In a sworn statement he accused Mr McGuigan of abusing the trust he placed in him to look after his career.
New details of the case emerged on day two of a preliminary hearing to determine if the lawsuit should proceed in Belfast or London.
Mr Justice Horner stressed: “These are mere allegations, there’s nobody giving testimony, and they will have to be tested in due course either here or in London.”
The boxer has issued a writ in Northern Ireland over an alleged failure to pay sums due in purse monies.
The action is being taken against Barry McGuigan, his wife Sandra McGuigan and Cyclone Promotions (UK) Ltd, and forms the basis of a counter-claim to separate legal proceedings brought against Mr Frampton by Cyclone Promotions at the High Court in London.
The writ refers to contracts for bouts in Northern Ireland, England and the United States.
It involves claims against the now dissolved Cyclone Promotions UK Ltd, of which Mr and Mrs McGuigan were directors, over purse fees, broadcasting rights, ticket sales and merchandising from Mr Frampton’s second world title match against Leo Santa Cruz in Las Vegas last year.
Lawyers for the McGuigans insisted all the allegations are categorically denied and argued that the case should be dealt with in London.
Although neither fighter nor promoter attended yesterday’s hearing, Mr Frampton’s parents Craig and Flo were present for arguments.
The court heard the name of Mr McGuigan’s son Blain was included on a promotional agreement with the boxer.
Gavin Millar QC, for Mr Frampton, submitted: “In reality the promotion was being done by Barry McGuigan.
“The presence of Blain McGuigan on the agreement is to mask the obvious conflict that arises through Barry McGuigan being, at that point, both the manager and promoter of the fighter.”
Mr Justice Horner was told the boxer claims doubts about his relationship with Mr McGuigan first emerged in the build-up to the title fight with Quigg.
In an affidavit Mr Frampton said he and his wife Christine noticed the McGuigan family, their
wives and girlfriends were putting everything on the account.
Referring to his enquiries about being paid months after the fight, he claimed “I was fobbed off” and told his opponent’s promoters were “messing around” over money.
According to Mr Frampton, however, Quigg was paid before him.
Moving forward to the summer of 2017, Mr Millar claimed this was the point of his client’s “realisation or belief that the McGuigans were ripping him off and concealing it”.
At that stage he was preparing to face Andres Gutierrez in Belfast, a bout ultimately called off when the Mexican slipped and injured himself in the shower.
“He was training for the Gutierrez fight scheduled for July 29 when the Revenue attended his home in Belfast with a demand for £397,000,” counsel told the hearing.
The visit related to allegedly unpaid VAT by a Northern Ireland-registered Cyclone Promotions company.
Mr Frampton resigned as a director in the company at that point and appointed an independent accountant, the court heard.
With breach of trust claimed by the fighter, he also alleged in his affidavit: “It’s my belief that Barry McGuigan and the McGuigan family abused the trust I placed in them in respect of my career as a boxer.”
Mr Frampton’s affidavit continued: “Barry McGuigan was in a position where I expected him to safeguard my interests.”
Mr Justice Horner said that he would deliver his judgment as soon as possible.