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  BUSINESS DEAL FROM HELL
By Sue TL Fox
August 24, 2002
 
  (TL Fox note: Efforts have been made to verify the accuracy of the information in this story, including my own personal review of some of the documents mentioned. In addition, there is much third party verification about details of the card itself. The costs cited here, and subsequent losses, would be in line with the promotion of such an event when compared to a similar type card. In addition, both parties were given ample opportunity to respond or include any information that follows.)

An eye-opening story on what happened to a well-intentioned boxing fan, on a business deal he made with a "promoter so to speak" that turned from BAD to WORST and has only continued to spiral out of control into the depths of frustration, disappointment, AND a tremendous financial loss......

On June 30, 2002, WBAN received an email from our Forum contributor John Wildsmith (who posts under the name of Jon Fox) when he wrote the following (Excerpt): "With some sadness I feel obliged to send you the following e-mail. On 7th February of this year I entered into a joint venture agreement (in writing) with Rudy Hackl for the staging of a boxing event in Halifax, Nova Scotia, in which his wife Doris was to be top bill. I provided finance for the venture to the tune of $60,000 Canadian. Rudy made no financial contribution. Rudy set up a promotion company which was named,  "Knockout Boxing Promotion". He also set up a bank account with a bank in Canada in the name of Knockout Boxing Promotion into which all of my $60,000 was paid. Rudy declared himself sole proprietor of Knockout Boxing Promotion and was also the only signatory for the purposes of the bank account. Both these moves were contrary to our written agreement but I didn't complain about this because I trusted him and time was short (since the boxing event was fixed for 28th March). Rudy told me that he had spent $54,000 Canadian putting the show together but it is clear from a bad copy of a statement of account emailed to me on June 17(the only document relating to figures I've ever had out of him) that only about $44,000 was spent on items we had budgeted for. Unfortunately, only he knows what he spent the other $10,000 on but he should have cleared any extra-budget expenditure with me before he went ahead. The event itself was a financial disaster in that net receipts were only $4382.98."

Wildsmith went on to say, "The cheque for this sum was made out to Knockout Boxing Promotion and was also paid into the KBP account. Now under our agreement, all of that $4382.98 was (as well as whatever of my $60,000 remained unspent) mine. But a month went by during which Rudy remitted none of this money to me until on 1st May he asked me in an email if he could borrow it. I explained that sadly I wasn't in a position to agree to this (mainly because I'd apparently just taken a $50,000 hit). So Rudy said he would be sending the balance on the account (about $10,000) to me on 5th May. But he didn't send it or any of it on 5th May and still hasn't and shows no intention of doing so."

I asked Wildsmith why and how he decided to invest his money into women's boxing. Wildsmith said, "Last year I came into about $80,000 U.S. and decided to invest $40,000 of it in some aspect of boxing. In December, I let it be known on various boxing forums (using an assumed name in case I was taken for a ride) that I was open to suggestions."

Wildsmith went on to say, "I had about six responses, including a long term media project that I invested $40,000 US in. And then Rudy (Hackl) came along wanting financing for a boxing bill he was wanting to promote in Halifax with Doris (Hackl) top of the bill." Wildsmith said that he respected former IFBA

Lightweight World Champion Doris Hackl from what he knew about her both as a boxer and a person. He knew that she was having trouble finding fights and felt that she would be a very worthwhile cause.

Wildsmith said, " So I decided to consider taking a bit of a gamble with the remaining $40,000. However, I wanted to take a good look at Rudy before I got myself into it, so I flew out to Nova Scotia and spent five days out there during which he insisted that I stay at his house with him and Doris. He'd never promoted his own boxing show before but he'd worked on boxing cards for various promoters in the past. Doris and him were both very friendly and he came across as a genuine and honest guy. So I agreed to enter into a joint venture partnership with him to put on this card. I would provide the cash (up to $60,000 Canadian dollars) and he would organise the show. We would share equally any profit that was left after I had been repaid."

Not only did Wildsmith lose nearly all of his $60,000 in this risky business venture, but has been extremely frustrated with trying to get what is left of this loss that he feels he is entitled to. Wildsmith told WBAN, "It represents a major financial setback for me but I went into the deal with my eyes open. My complaint is that, contrary to our agreement he (Rudy) put himself in a position to afford himself alone access to my money and he's kept the balance of it. And such is his reluctance even to send me copies of bank statements that I now have little choice but to conclude that he's spent it."

Wildsmith added, "Despite repeated requests, he (Rudy) has flatly refused to send me copies of the Knockout Boxing Promotion bank statements even though every dime in that account is (and always has been) my money and the account was set up with him as sole signatory in breach of our written agreement."

Wildsmith submitted to WBAN some significant emails between he and Rudy Hackl. In the earlier emails, both sounded very enthusiastic about the upcoming event they were planning---discussions of naming the promotional company, getting a promoters license, opening up an account, and having a written agreement are many of the items that were discussed.

Three days before the event…..

I asked Wildsmith when he realized that this was not a good investment. Wildsmith said, "Rudy's emails gave the impression that everything was going swimmingly so it wasn't until I returned to Canada, three days before the fights and was told by Rudy within minutes of getting off the plane that ticket sales were going very badly that I realized what a disastrous investment it was. I was prepared to break even (or even sustain a modest loss) in anticipation of doing better in future collaborations with Rudy. But I wasn't prepared for the size of this loss."

Wildsmith was not too far off the Mark….On March 28, the day of the fight, Sportswriter Chris Cochrane of the Halifax Herald Limited wrote an alarming editorial "Rematches must also be sold." Cochrane wrote, "(Excerpt) NOVA SCOTIA'S Doris Hackl against Florida's Brenda Vickers for a world boxing title. That's the main event on tonight's Halifax Forum pro-am boxing show promoted by Hackl's husband Rudy. It's a rematch of their bout in Halifax 15 months ago when Hackl was named the controversial winner to retain some alphabet soup version of the world championship." 

Cochrane goes on to say, "Rematches usually draw more fans than the original bout, so in the period leading up to tonight's fight, there was reason to believe this card would pack fans into the Forum. That won't happen. Unfortunately, this promotion appears to have relied almost solely on the appeal of the first fight to sell the rematch. That was a mistake. Simply because Vickers-Hackl was a success the first time around, that doesn't mean it will automatically be a hit the second time. Unlike their first fight, this one wasn't sold to the fans or the media. That explains why for several weeks there has been little publicity and even less talk in the streets. Even title rematches, no matter how popular the original meeting and how potentially attractive the second may appear on paper, don't sell themselves."

Cochrane apparently knew what he was talking bout….

According to the next day's news reported in the Halifax Herald Limited, there was only a sparse crowd of 400 fans that showed up at the Halifax Forum.

After the event took place…...

Shortly after the event, Wildsmith said that Rudy had asked him, if he (Rudy) could borrow a substantial amount of the money that was left in the account. Wildsmith replied to Rudy stating that he would like to help out but, after taking such a financial bath, he could not do so.

Wildsmith said that after reviewing a statement of account that he had received on June 15, 2002, and checking it out more closely, that it clearly stated that he only lost $38,389.24, which meant that out of his $60,000 Can, that $21,610.76 Canadian remained. Wildsmith said that he tried to point that out to Rudy after discovering the figures on the document, but was met with an unfriendly response.

Then the back and forth emails continued…...

The emails that Wildsmith presented to WBAN between he and Rudy after the event, were becoming less friendly, Wildsmith began to say many things to try and persuade Rudy to send his remaining money to him...but all of his attempts on email failed.....The strain of communication between the two began to escalate….

After being notified of this situation and Wildsmith wanting to alert those with an involvement in boxing of the dangers (as he perceives them) of having anything to do with Hackl, WBAN (TL Fox) had contacted Hackl to give him an opportunity to respond to what was reported.

Rudy told WBAN, "The situation is the same like before, Jon got every invoice and papers except my Knockout Boxing Promotion account, I am the founder of the company and not he, he was just an investor for an outlook to make profit."

Wildsmith response to Rudy's comments, "Rudy knows full well that we were partners from the word go. I would never sink nearly $40,000 US into a venture of this nature without having a say in how it was spent and how the event was put together. The guy signed a joint venture agreement, for goodness sake, a copy of which you've already seen." (WBAN has viewed the contract between Wildsmith and Hackl).

Rudy went on to say to WBAN (TL Fox), "He (Wildsmith) started to accuse me without reason and now he approach you, if you like to help him to try to make me dirty so be it, I don't think I owe anybody an explanation? If Jon Fox or Jon Hughes or Jon Fox (all the same person) can't deal in that kind of business he shouldn't go for."

Wildsmith said in response to the different names he used, " I've used the name "Jon Fox" consistently from the time I first posted anything on the net all of four years ago. I used the name "John Hughes" for a month last December purely for the purpose of inviting suggestions and ideas for involvement in some aspect of boxing because I didn't want dodgy characters knowing my real name when I was telling the world that I had $40,000 US at my disposal. And I've never had a problem like this in any previous business dealing - because I've never before become involved with anybody like Hackl."

Rudy told WBAN that when the ticket sales were going very poorly for the event, that Al Driscoll, manager of the arena where the event was to take place suggested to him and Wildsmith that they may consider canceling the show and put it to a later date. Rudy said, it was Wildsmith's decision to go for it and go as planned.

Wildsmith response to the Driscoll conversation was the following: "Al Driscoll, the Manager of the arena where the Knockout Boxing Promotion card took place (the Halifax Forum). I arrived in Canada on Monday, 25th March, three days ahead of the event, to be told by Rudy that ticket sales were going badly. He (Rudy) then took me to see Driscoll who told me the same thing. So cancellation was discussed (although not postponement) but I decided that, at that late date, it would be impossible to salvage enough of my cash to make it worth destroying all our credibility as promoters for the foreseeable future. (Believe it or not, further collaborations between me and Rudy were contemplated at that time)."

Rudy asked WBAN, "BTW, why he don't make a legal action against me? I talked two months ago with my Lawyer, he would be pleased to take this case, so I think the best is , he let finished the Government his job, after I send him the left over money back. I don't have right now more to say. You can also post this email, if you want?"

Wildsmith said to WBAN about getting a lawyer…. "Going to law is just too horrendous to contemplate. It would cost a damn sight more than $10,000 (or even $20,000) before I saw a dime. For a start, although the Joint Venture Contract stipulated that it would be governed by English law, that's only one consideration in deciding what law applies (if I recall my Conflict of Laws right). More persuasive might be the fact that performance took place wholly in Canada. Plenty for the lawyers to get their expensive teeth into there. And even if I got judgment in the English courts, I'd then have to register and enforce it in Canada (at further astronomic expense). "

I asked Wildsmith what does he feel he would accomplish through exposing this business deal he got involved in. Wildsmith told WBAN that he wanted to put people on noticed of what he went through on this tremendous loss and does not want to see anyone else fall into the same situation. Wildsmith added, "On a personal note, it's the ingratitude that has gotten to me. I never moaned about losing the large amount of money to enable Rudy to realise a personal ambition and to enable the Hackls to move their lives on. But for Rudy then to hang on to what little of my investment remained is a funny way of demonstrating appreciation."

In another email from Rudy to WBAN (TL Fox), he wrote, "Jon approach me again with his bullshit, because he has nothing to do and I am very busy, I can't be every hour on the computer, I wrote him few minutes an email if he is not satisfied, I can't help him. In my opinion is this a private matter between him and me and Jon should be careful what he say, because that can cost a lot of money. He lost almost $ 60000 CAN, he got warned from Al Driscol (Halifax Forum Manager) I can give you his number? Jon should learn to deal with, he also invested in another boxing affair and this affair is much larger, deadline is September, I am curious which guy he will blame for that? Sue, don't get to much involved, I avoid that stupid conversation from the beginning."

Wildsmith shared with WBAN one of his last email correspondences with Hackl in which he spoke further with Hackl about the money that was left in his investment.  Wildsmith said that in Hackl's email, that he (Hackl) told him (Wildsmith) that he forgot that Doris' purse was $8,000US, $3,000 was for the purse, and $5000 was for training expenses.  The email also talked about Hackl's car using 14,000 km @ 0.34 cent., in order to make the fight card happened and that he had proof of gas station receipts---And that there were different consumer bills for him (Wildsmith) and all of the people that he (Wildsmith) had invited, for Hotel, etc. Wildsmith said that he was surprised at the end of Hackl's email when Hackl said that if he (Hackl) dug deeper, that Wildsmith probably owed HIM (Hackl) money! Wildsmith said that in closing Hackl told him to do what he had to do, and that he (Hackl)  was ready for him(Wildsmith), with the closing remark---that he (Hackl) would see him (Wildsmith)  in court.  

Wildsmith told WBAN that he responded to Hackl's email and said that he (Wildsmith) told Hackl that Doris' purse was $8000 Canadian, and that was on the budget they had agreed upon. Wildsmith said that he pointed out that the purse was included in the $22,682, in Item #18 on that Statement of account, and that there was no provision in the budget for training expenses.  Wildsmith said that all of the Hotel, Food, and drink bills were provided for in the budget and that that was not exceeded.  Wildsmith said that he told Hackl that there was no provision in the budget for car expenses.

As of this date…... Wildsmith has not been able to recoup one cent from the 60,000 he invested in this failed business venture…..

WBAN asked Wildsmith what he would tell others, if they want to get into similar investments. Wildsmith said that there is a saying in business,  "Choose your business partner more carefully than you choose your wife." Wildsmith added, "My present situation is a perfect indication of the wisdom of that particular adage."

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