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On 24 May 2008, Hatton beat Mexican Juan Lazcano by unanimous decision with scores of 120-110, 120-108 and 118-110, in front of his home crowd of 55,000 (a post-World War II record for a boxing match in Britain), at City of Manchester Stadium to retain The Ring Magazine and IBO light welterweight titles. Hatton did well when he boxed and controlled the range, utilizing his jab and dominating a lot of the early exchanges. In round eight, Hatton absorbed a left hook to the chin that wobbled him, and in round ten, Hatton was hurt again by a left hook. Despite that, Hatton outworked Lazcano to win at least ten of the rounds.

Hatton was coming off his first career loss to Floyd Mayweather, Jr. and was fighting for the first time back in Manchester. It was a thanks to all his fans who had travelled to the States to watch his previous four fights and was held in his home Football ground of his beloved Manchester City.

Lazcano was a durable opponent who was in the top ten for light welterweights in the Ring Magazine rankings. His only stoppage defeat was to Golden Johnson ten years previously and he was also coming off a loss to Vivian Harris

Paulie Malignaggi was on the undercard as he and Hatton were meant to fight each other later in the year.

The weigh-in took place at the Trafford Centre in Manchester and there was a lot of anticipation about Hatton's Ring Entrance. A lot of people were criticizing his diet between fights and were saying he was past his best, He wanted to prove them wrong and also take a dig at them at the same time. Hatton said it could be his last in Britain.

The ring entrance involved a version of Hi Ho Silver Lining with the words replaced to mention Hatton, followed by Blue Moon. Hatton appeared in a fat suit and walked to the ring in it.

The referee was Howard Foster and the judges were Marcus McDonell, Pat Russell and Phil Austin. Judges scores of 120-110, 118-110 and 120-108 proved that it was a dominating display. Hatton also rocked Lazcano several times and had him against the ropes using the full repertoire of shots, with Lazcano's back bruised from being constantly pushed against the ropes.