International Boxing Association Facing Possible Bankruptcy
The International Boxing Association (AIBA) is now suffering from potential bankruptcy issues.
According to The Guardian, amateur boxing's governing body has yet to pay back millions dollars in loans and investments and could potentially face bankruptcy.
There had been issues at the top of the governing body after the treasurer and finance director resigned following claims that they "were sidelined" by AIBA President Wu Ching-kuo. An executive committee member was also removed by the AIBA president after the executive was worried about possible irregularities within the organizations finances. That executive member was reinstated by Swiss courts, where AIBA headquarters are located, in mid-July.
AIBA has been under scrutiny for some time now, with numerous claims by many in the boxing community that the judging had been subpar. Current pro boxer Michael Conlan, who recently fought on the Manny Pacquiao vs. Jeff Horn undercard, made headlines at the 2016 Summer Olympics after he believed he was robbed by the judges in his quarterfinal fight against Vladimir Nikitin.
Azerbaijani company Benkons also sent out a letter demanding AIBA to pay back an £8 million loan from 2011. A source within the organization said AIBA only has £2 million in its account despite receiving about £14 million in investments from the IOC to help the organization through the 2020 Summer Olympics, which will take place in Tokyo.
The organization published a letter on its official website responding to the media reports and condemning the financial mismanaging of a former executive member, part of which can be read below.
Regarding the Azeri loan, Benkons MMC had never claimed any payment from AIBA nor called upon the guarantee contained in the Investment Agreement until its letter dated July 19, 2017. Benkons and AIBA in fact had reached an agreement in which AIBA assumes the obligation to reimburse the loan and Benkons MMC agrees to a repayment schedule. Benkons’ lawyers reviewed this Settlement Agreement and expressly approved its content on all the essential features. AIBA was surprised at the letter and its leaking to the press, and has initiated arbitration proceedings against Benkons in Switzerland seeking a declaration that the Settlement Agreement is valid and binding.
The city of Hamburg, Germany, will host the 2017 edition of the AIBA World Boxing Championships, which will run from August 25 to September 2.
