The World Boxing Council has been forced into liquidation after losing a £17m legal battle against former world champion Graciano Rocchigiani.
Rocchigiani was originally awarded the sum in April 2003 after claiming he was illegally stripped of the WBC's light heavyweight title in March 1998.
After losing the appeal, WBC president Jose Sulaiman said it was "impossible" for the body to pay the award.
And the WBC has been forced into bankruptcy proceedings.
The WBC had hoped to persuade the court and jury that it was not liable or responsible for "the harm Rocchigiani alleged."
"Sadly, and despite a vigorous defence, the WBC did not prevail," Sulaiman said.
Rocchigiani beat Michael Nunn for what was supposed to be a title that Roy Jones Jnr had relinquished.
But in June, when Jones decided he wanted to keep the belt, the WBC opted to retain him as champion.
In addition to the compensation, the WBC has been ordered to recognize Rocchigiani as champion from 1988-2000.