The Fight That Bankrupted a Town:

Jack Dempsey vs. Tommy Gibbons in Shelby, Montana, July 4, 1923

The summer of 1923 witnessed one of the most audacious and ultimately disastrous events in American boxing history: the heavyweight championship bout between the formidable Jack Dempsey and the resilient Tommy Gibbons, staged not in the bright lights of New York or Chicago, but in the tiny, wind-swept oil boomtown of Shelby, Montana. It was a gamble of epic proportions, driven by the heady optimism of a nascent oil economy and the boundless ambition of local promoters, a gamble that would leave a lasting, cautionary tale in its wake.

Jack Dempsey, "The Manassa Mauler," was arguably the most famous athlete in the world in the early 1920s. His aggressive, relentless fighting style had made him a cultural icon, a symbol of brute strength and a true American hero. He had demolished Jess Willard to win the title in 1919 and thrillingly defended it against Georges Carpentier in 1921 in the first million-dollar gate in boxing history. His manager, the shrewd and often unscrupulous Doc Kearns, was notorious for extracting maximum financial gain from Dempsey's unparalleled popularity.

Tommy Gibbons, a St. Paul native and the brother of former middleweight champion Mike Gibbons, was a skilled and durable boxer, known more for his defensive prowess and tactical acumen than his knockout power. While a credible challenger, he lacked the electrifying charisma that made Dempsey a draw for the masses. This disparity in public appeal would prove to be a crucial factor in the financial ruin that followed the fight.

The decision to bring such a high-profile event to Shelby, a town with a population of only around 500, seems, in retrospect, a monumental folly. However, the genesis of this audacious plan lay in the discovery of oil in the Kevin-Sunburst field north of Shelby in 1922. The oil boom infused the small town with a sudden, intoxicating wave of wealth and optimism. Local businessmen, led by Mayor James Johnson, who also owned a prominent bank, envisioned Shelby transforming into the "Tulsa of the Northwest." They believed that hosting a world heavyweight championship fight would put Shelby on the national, even international, map, attracting further investment and cementing its newfound prosperity (Source 1: Shelby's Folly: Jack Dempsey, Doc Kearns, and the Shakedown of a Montana Boomtown by Jason Kelly).

The initial offer from Shelby to Dempsey's camp was a staggering $200,000, a sum that dwarfed what many larger cities were offering. Doc Kearns, ever the opportunist, drove a hard bargain. The final agreement stipulated a guaranteed purse of $300,000 for Dempsey, to be paid in three installments. Kearns also demanded a significant upfront payment of $100,000 upon signing the contract, with the explicit condition that if any payment was missed, the contract would be null and void, and Dempsey's team would keep all previously paid sums (Source 2: BoxRec.com - Jack Dempsey vs. Tommy Gibbons).

The first installment was met, but the subsequent payments proved to be an agonizing struggle for the Shelby promoters. The sheer scale of the undertaking was immense. To accommodate the anticipated crowd of 40,000 people, a massive wooden arena was hastily constructed outside of town, requiring over a million board feet of lumber and hundreds of laborers. Railroad lines were expanded, temporary hotels erected, and the town prepared for an influx of visitors unprecedented in its history (Source 3: University of Montana, Mansfield Library Archives - Dempsey-Gibbons Championship Fight ticket, 1923).

As the fight date, July 4, 1923, drew closer, financial woes mounted. Despite the initial enthusiasm, ticket sales lagged. High prices, combined with Shelby's remote location and the relative obscurity of Gibbons compared to Dempsey, deterred many potential spectators. Rumors of financial instability began to spread, further dampening interest. Mayor Johnson and his fellow promoters scrambled, resorting to increasingly desperate measures to raise the necessary funds. There were even apocryphal tales of offers of sheep as payment, which Kearns famously dismissed (Source 4: VICE - The Night Jack Dempsey Bankrupted a Town).

Just days before the fight, with the final $100,000 payment still outstanding, Kearns publicly declared the fight off. This calculated move sent shockwaves through Shelby and the boxing world. Desperate to salvage the event and avoid complete humiliation, the Shelby contingent, led by individuals like Loy Molumby, who reportedly pursued Kearns by plane across the country, finally convinced Kearns to proceed. The agreement was that Kearns would take whatever money could be collected from the gate receipts as the final payment, a clear indication of the promoters' dire straits (Source 5: Distinctly Montana - The Day Jack Dempsey Cheated Shelby).

On July 4, 1923, the small town of Shelby was indeed transformed, though not as profitably as envisioned. Thousands descended upon the prairie, but a significant portion of the crowd did not pay for admission. Many simply streamed into the arena, overwhelming the gatekeepers, or found vantage points on surrounding hills. Estimates suggest that while the arena had a capacity for 40,000, only around 7,702 paying customers attended, with an additional 13,000 or more watching for free (Source 2: BoxRec.com - Jack Dempsey vs. Tommy Gibbons).

The fight itself, a 15-round contest, was a study in contrasts. Dempsey, known for his ferocity, seemed less inclined to go for the early knockout, perhaps influenced by the long training camp in Great Falls and the grueling negotiations. Gibbons, a master of defense and counter-punching, skillfully avoided Dempsey's most devastating blows, tying him up in clinches and frustrating the champion's aggressive style. While Dempsey landed the heavier shots and controlled most rounds, Gibbons proved remarkably resilient, becoming the first boxer to go the full 15 rounds with "The Manassa Mauler" without being knocked down. In the end, Dempsey won a clear unanimous decision, retaining his world heavyweight title (Source 6: Great Fights: The Boxing Record Book by Bert Sugar).

The immediate aftermath was chaotic. With the financial guarantees unmet, Doc Kearns wasted no time in leaving town, reportedly paying extra to ensure his train departed quickly. The economic fallout for Shelby was swift and devastating. The initial oil boom had already shown signs of cooling, but the fight proved to be the decisive blow. Four local banks, deeply invested in the fight's promotion, went bankrupt in the weeks and months that followed, taking with them the savings of many residents and businesses. Mayor Johnson himself lost a significant portion of his personal fortune. The grand aspirations of Shelby becoming a bustling western metropolis evaporated, replaced by financial ruin and a lingering sense of humiliation (Source 1: Shelby's Folly).

The Dempsey-Gibbons fight in Shelby became a legendary cautionary tale in the annals of sports promotion. It highlighted the immense financial risks involved in big-time boxing and the dangers of overleveraging local resources for a speculative venture. For Shelby, the experience was a profound lesson in economic diversification and the perils of placing all hopes on a single, high-stakes event.

Despite the financial catastrophe, the fight left an indelible mark on Shelby's identity. The town hall building, hastily constructed to serve as media headquarters, stands today as a tangible reminder of that audacious summer. For decades, the Dempsey-Gibbons fight was a sore spot, a source of local embarrassment. However, in more recent times, Shelby has embraced this unique piece of its history. Centennial celebrations have been held, and locals now often view the event as a testament to the town's ambition, resilience, and willingness to take a daring risk, even if it didn't pay off as planned. The story of Dempsey and Gibbons in Shelby serves as a powerful reminder of the speculative nature of the Roaring Twenties and the enduring human fascination with larger-than-life sporting spectacles, even in the most unlikely of settings.

Sources:

Kelly, Jason. Shelby's Folly: Jack Dempsey, Doc Kearns, and the Shakedown of a Montana Boomtown. Bison Books, 2012.

BoxRec.com. "Jack Dempsey vs. Tommy Gibbons." Accessed June 26, 2025. https://boxrec.com/wiki/index.php/Jack_Dempsey_vs._Tommy_Gibbons

University of Montana, Mansfield Library Archives and Special Collections. "Dempsey-Gibbons Championship Fight ticket, 1923." Accessed June 26, 2025. https://archiveswest.orbiscascade.org/ark:80444/xv78311

VICE. "The Night Jack Dempsey Bankrupted a Town." November 22, 2017. Accessed June 26, 2025. https://www.vice.com/en/article/the-night-jack-dempsey-bankrupted-a-town/

Distinctly Montana. "The Day Jack Dempsey Cheated Shelby." October 24, 2024. Accessed June 26, 2025. https://www.distinctlymontana.com/day-jack-dempsey-cheated-shelby

Sugar, Bert Randolph. Great Fights: The Boxing Record Book. Park Lane Press, 2004.