Liston-Clay I; Where the money went?

Ping-Ping,

SONNY LISTON
$1,365,000

The money from ICP, Corp was his alone, and was not subject to his
agreement with Jack Nilon.

Also, the money he received from TNT, Corp, as an officer of the
Corporation was also his, and not subject to his agreement with Jack Nilon.

From what I have in my files, is that Jack Nilon became Sonny Listons
'advisor' back in early 1962.
There were several contracts drawn up, to possibly deceive other
claimants to Sonny Listons money.
Jack Nilon had a 5-year contract as Sonny Listons 'advisor'.

One contract has Jack Nilon as the major stockholder in Liston, owning
50% of him, while also receiving an 'advisors' fee.
That would mean, Jack Nilon was entitled to $682,500 as manager, plus 'advisor' fee's.
Sonny was also to receive the same amount $682,500.

Of course Nilon would be responsible for all standard operation costs,
as well as a host of other related business and training costs.

Liston would be responsible for trainers fee's and assistants, cut man,
chief second cornerman, personal valet, personal driver and hangers on.

Also, taxes would be required on the personal income level.

With all the costs involved, and notion that Jack Nilon had to kick-back
10% of his money ($68,250) to 'so-called' other contract holders,
and another 5% ($34,125) for a so-called 'finders fee' to the people who hooked him up with Sonny Liston.
In reality, he didn't end up with a ton of money or 'alot of bread' as he liked to say, for all the aggravation and contributing cause to his health problems.

Sonny, on the other hand, was cut-up like a 8-piece pie. On paper it looked nice, but the back-room dealings, personal loans, selling
percentages of himself to get money, and other ouside the ring activities
left Liston with only a small portion of himself. He owned approximately
10% of himself, basically $68,250.

After signing a 5-year deal with the #1 Ranked Heavyweight in the World, back in March 1962, and help guide him to
a Heavyweight Championship and most prestigous title in the world, a successful title defense, and a $5,000,000
gross in the Liston-Clay fight, Jack Nilon resigned as Sonny Listons manager/advisor in August 1964, just
2 1/2 years and 3-fights into their 5-year contract.

 

groove,
A few different circumstances in the Ali-Liston II Fight.

Closed Circuit Revenue,,,$3,500,000 (Guarantee instead of Percentage)
Other Ancillary Rights,,,,,,,,$400,000 (Radio, Overseas Radio, etc.)
Live Gate,,,,,,,,,,,,,,,,,,,,,,,,$200,000

From what I can find, Sam Michael the local Lewiston, Maine promoter was to keep
the live gate proceeds, but did have to cover the on-site costs.
He did not have to pay for the 'live gate' contract, or reimburse anything back to
ICP, Inc, the fights main promoters.

Sports Vision, Inc. (the closed circuit broadcaster) was to keep anything above the
$3,500,000 closed circuit theatre revenue. (Actual revenue $4,100,000)
Sports Vision, Inc. received approx. $600,000 (But a portion was to be split with the theatre operators)

Of the $3,500,000 in closed circuit revenue, $1,750,000 went to ICP, Inc, the
fight promoters. The other $1,750,000 went to the theatre operators.

The $400,000 ancillary rights went to ICP, Inc.

ICP, Inc, then had to distribute the net revenue $2,150,000 to Muhammad Ali,
Sonny Liston, as well as take their percentage for putting the fight together.

Inter-Continental Promotions, Inc. received a flat fee of $1,000,000 as the Main Fight Promoters.

That left $1,150,000 to be paid to the fighters Muhammad Ali and Sonny Liston.
Several conflicting percentages, but it appears that;
Muhammad Ali got, 55% = $632,500
Sonny Liston got,,, 45% = $517,500

Each fighter would be responsible to take out for managers percentage (approx 50%).
FIghter Net;
Muhammad Ali,,,,$316,250
Sonny Liston,,,,,,$258,750

 

Ping-Ping,

The difference between the Liston-Clay fight in Miami, and the
Ali-Liston fight in Lewiston, Maine was;

In the Miami fight, Inter-Continental Promotions contract with the closed circuit operators was that they would get 55% of the theatre ticket buys, and the theatre operators 45%.

For the Lewiston, Maine fight, Inter-Continental Promotions took a flat guarantee
of $3,500,000, of which they would get 50%, and the closed circuit operators
would get 50%.

For the Maine fight, Sports Vision, Inc. the fights broadcasters got anything above the $3,500,000 in
theatre ticket revenue, which was approximately $600,000, and they in turn gave a percentage of that back to the theatre operators.

The guarantee was a more solid deal for the second fight, as it appeared that the fight would tank at first, due to the massive complications.

 

Goody,

In the files, there is several contracts between Sonny Liston and Jack Nilon.

The first one from March 1962;
Sonny Liston,,,,, 2/3 share (66.66%)
Jack Nilon,,,,,,,,, 1/3 share (33.33%) as manager

The second one;
Sonny Liston,,,,3/5 share (60%)
Jack Nilon,,,,,,,,1/3 share (33.33%) as manager
Jack Nilon,,,,,,,,1/16 share (6.67%) as an advisor

The third one;
Sonny Liston,,,,5/10 share (50%)
Jack Nilon,,,,,,,,1/3 share (33.33%) as manager
Jack Nilon,,,,,,,,1/6 share (16.67) as an advisor

As noted, Sonny Liston was selling more and more of himself, as he was borrowing money (loans) against himself.

 

Goody,

Something that only a few people looked into.
The original fight was set for November 16, 1964 at the Boston Garden.
Due to new Tax-Reform Laws, it would be better to fight in 1965 than
have the re-match in 1964.
The fighters and managers would be able to keep more of their money.

Also, because of the uncertain circumstances surrounding the fight. I-C-P the promoter, negotiated a flat-rate for the closed circuit TV deal at $3,500,000, instead of working off percentages (ie; first fight).
They felt it was less risk to take a flat-rate, this way they would be guaranteed
$1,750,000, to be split amongst themelves and the fighters.

The problem in the contract. I-C-P took upfront money from Sports Vision, Inc. in
July 1964, when the contract was signed.
The fight was scheduled for November 16, with a back-up date no later than the 25th.
I-C-P had a provision in the contract, that under uncontrolled circumstances
(ie; fighter injury), they could postpone the fight for up to 6-months.
May 25, 1965.

I-C-P used the upfront money (50% of the $1,750,000 for expenses and early payment to the fighters, or approximately $875,000).
When 17-days before the fight, the District Attorney in Boston pulled the plug on the
May 25th fight.
I-C-P had 17-days to set-up another fight, or they would have to reimburse the
$875,000 back to I-C-P (money they already had spent), plus additional expenses that
Sports Vision Inc. had spent on 2 postponements, a pre-fight guarantee of $3,500,000.

Whether Sonny Liston was fed up with whole ordeal of I-C-P and law suits, and postponements and hounding of the press, new management and total confusion,
maybe it did.
Since he had half his money already, and that was already spent months ago,
who knows if he just said I'll go down with the first hard punch., why go through the
tough grind of a long hard fight, I'm not getting anymore money for it.

 

Zad,
Can't find all the infinite details.
I have always followed the so-called 'bouncing-ball' on this one.

For the re-match,
Miami didn't want it, because of the stench surrounding the first fight.
California would not issue Sonny a license.
New York would not issue Sonny a license.
Philadelphia didn't want it.
Chicago didn't want it.
Detroit was pressured into not taking it.
Las Vegas, after looking at Sonny Liston's contract, said an emphatic 'no'.
Boston accepted it for November 1964.
Fight cancleed, and re-scheduled for May 1965.
Boston rejects fight, does not sanction bout 5/8/65.
Promoters scramble to Cleveland, but its rejected after re-searching Liston's contracts.
Connecticut doesn't want it.
Providence, Rhode Island is not interested.
Maine accepts it 5/9/65.

You have to remember, between 2/25/64 and 5/25/65 is a long time for Sonny Liston to go without any income, especially since some big bucks were tied up in legal issues
concerning the first fight with Cassius Clay, and still money isues over the
Liston-Patterson II fight had not been settled.

Las Vegas was correct, Sonny lent himself to be open to 'unscrupulous dealings'.
A 'fight-fix' would be extremely bad for business, and it might take years to recover.
The Las Vegas boxing commission even suggested to Jack Nilon, to take this fight
where no one goes,,,,,,,Pine Bluff, Arkansas.

Sonny did own 22 1/2% of Inter-Continental Promotions, but the big income generated from that Corp., would end after the Ali-Liston fight.

 

As you can see in my previous post, wwhat was happening to Sonny's percentages in his contract/contracts with Jack Nilon.

There were other hidden dealings. I think George Katz, one of Sonny's earlier
managers was still entitled to 10% of Sonny.

Pep Barrone was still owed $45,000 or so.

I think Teddy King, Sonny's friend, got Sonny involved in some stupid business, and they needed $50,000, so Sonny sold another 10% of himself.
There was also gambling debts in Denver and in Philadelphia.
And a quiet Casino gambling debt in Las Vegas.
This all from a man, who couldn't read, or tell the difference between a check
written for $25,000 or $250.00

 

Ink-Spot,

The term the boxing writers were using about Sonny was;
'good fighter fallen to evil men'

As per those early records, Sonny was hired as a 'salaried employee'.
He didn't own himself.
Being a salaried employee of the 'orginazation', I'm sure he had other duties besides
boxing in the ring, like the muscle in the 'collection squad', thug or goon.
Of course, not all the 'illegal gambling parlors' liked to pay off when they lost.
They would close up shop, and head to the other side of town.
Philadelphia was a little more fragmented, than Chicago or New York.

The line up of managers;
Robert 'Bobby' Burnes (first manager in St. Louis, good guy)
Frankie Mitchell
Tom Tannas
Blinky Palermo (connection to Frankie Carbo)
Joseph 'Pep' Barrone (positioned as a manager by Blinky Palermo)
George Katz
Jack Nilon
Eddie Polino
Dick Sadler
Davey Pearl

The contracts over-lapped, and it was totally messed-up.
In early 1961, Joseph 'Pep' Barrone sold his contract back to Sonny for $75,000, to be paid in monthly installments over 2-years.
In April 1961, George Katz signed a (2 1/2 year) deal with Sonny, making him manager until 10/63.
In March 1962, Jack Nion took over as manager, and signed a 5-year deal with Sonny.
Jack Nilon, resigned as manager in August 1964.
Eddie Polino took over Jack Nilons contract in Sepetmber 1964.
Dick Sadler came in, when the 5-year contract was over, Febraury 1967.
Davey Pearl came in for 1970.

 

Well written by the Milwaukee Journal.

One of Sonny's early managers Frankie Mitchell pleaded with Pittsburg-based
Tom Tannas to take Sonny off his hands, before he shot him.
Sonny blamed Frankie for his loss versus Marty Marshall.

Also, in a Mitchell article. The ex-manager said of Liston, if this guy makes it the World Championship, he'll cost me a Million dollars in lawyers just to keep him out of jail.

Sonny makes believe alot, with the 'poor me routine', but he is the most ungrateful
human being I ever had the displeasure of dealing with.

 

On the first fight contract.

The original contract was drawn up in August 1963.
It was signed at the end of October 1963.
Cassius Clay's original deal was for 22 1/2% of the gross profits.

Estimated gross profits; $2,500,000 to $3,000,000

In that contract that was presented to the Miami Beach Boxing Commision, there was no mention of a return match clause.

It was found out, after the fight that another agreement existed.
The Commission requested a copy of that agrreement but it was never presented.