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Oct 25, 2024
DraftKings, Former Exec Talk Settlement in Marathon Legal Battle
The long-running legal battle between DraftKings and a former executive could be nearing an armistice.
Attorneys for Michael Hermalyn and DraftKings noted in a Tuesday court filing that the two sides “are negotiating a potential resolution” of a federal lawsuit that began days after Hermalyn left for Fanatics Sportsbook in February.
DraftKings sought and won an injunction that hamstrung Hermalyn’s day-to-day duties at Fanatics earlier this year, though Hermalyn is expecting his first victory in the bicoastal legal battle over the enforcement of his non-compete agreement as part of a separate case in California.
U.S. District Court Judge Julia Kobick granted a request Tuesday from Hermalyn and DraftKings to stay proceedings in the federal case until Nov. 20, a day after a scheduled one-day trial in Los Angeles as Hermalyn seeks to get his one-year non-compete invalidated sooner than its Feb. 1, 2025, expiration date. L.A. County Superior Court Judge Tony L. Richardson noted in a court filing in the case that Hermalyn was “likely to prevail on the merits.”
DraftKings and a spokesperson for Hermalyn declined comment when reached about the potential settlement.
Oct 25, 2024
NFL’s Browns Sue Cleveland Over Modell Law Move Ban
The Cleveland Browns sued the City of Cleveland in federal court on Thursday, claiming an Ohio law—Revised Code 9.67, the so-called “Art Modell law”—is unconstitutional and can’t legally block the team from building and relocating to a domed stadium in nearby Brook Park.
The Browns’ complaint contains six counts, five of which are demands for declarations that the Modell Law violates the U.S. Constitution, with a sixth seeking a finding that even if the law is constitutional, the Browns have followed it.
The Browns’ lease with Cleveland to play at the publicly owned Huntington Bank Field will expire in 2029, after which the Browns say they will have “no right or obligation” to continue to play at HBF. The team is exploring a stadium project in Brook Park, a city about 15 miles from Cleveland. While HBF is used for major events 10 to 12 times per year, the Browns say the envisioned Brook Park stadium would host as many as 70 major events a year and “drive significant economic activity” in and around Cleveland.
Oct 25, 2024
WNBA Facing 4 Big Business Questions This Offseason
From a business perspective, the 2024 season is the most important year in recent WNBA history.
The league hadn’t drawn a million viewers to a game since 2008. Then it hit that mark 22 times in the regular season alone, which helped the league ink an 11-year, $2.2 billion media-rights deal with ESPN, NBC, and Amazon in July (with an option to renegotiate three years in). Commissioner Cathy Engelbert instituted charter flights for every game, attendance soared, and national media coverage (and controversies) skyrocketed.
The league is also readying to begin its expansion era with Golden State, and Engelbert already announced the regular season will expand by four more games and the Finals will be a best-of-seven.
In many ways, the league’s hands are tied until 2026 when those media dollars come in: Critics will spotlight projected top draft pick Paige Bueckers’s base salary of $78,831; the WNBA will offer paltry player contracts compared to overseas women’s basketball leagues.
Still, several opportunities remain to continue the upward trajectory of this season while awaiting the explosion of cash.
Oct 23, 2024
Ohtani’s 50/50 Ball Breaks Record Amid Ownership Dispute
Shohei Ohtani’s historic 50th home run ball set a record at auction. Now it goes to court.
The ball, which cemented the Dodgers star as the lone player to hit 50 home runs in the regular season and steal as many bases sold for nearly $4.4 million at auction, which includes the buyer’s premium, making it the most expensive ball of any sport ever sold. The ball was consigned by Goldin.
Oct 23, 2024
UFC’S $375M SETTLEMENT WITH FIGHTERS GETS PRELIMINARY APPROVAL
A $375 million settlement agreement between UFC and UFC fighters to resolve Cung Le et al. v. Zuffa, a class action antitrust litigation that began a decade ago, received preliminary approval on Thursday from U.S. District Judge Richard Boulware.
Oct 22, 2024
College Athletics
The Future of College Sports Hangs in the Balance With the 2024 Elections
The NCAA has spent the last decade on a major losing streak in court that has chipped away at the business model of amateurism. It started with athlete NIL (name, image, and likeness) rights, but it could end with a full-on employment model.
So the NCAA has more recently turned its attention to Congress, investing millions in convincing lawmakers to halt, and in some cases reverse, the onslaught. The NCAA’s wish list includes preventing athletes from becoming employees, and getting legal protection to enforce their own compensation rules.
So far, the efforts have been unsuccessful. But the 2024 election, now just two weeks away, could change that.
Oct 22, 2024
A-Rod, Lore Put $942 Million in Escrow as Arbitration Looms
Alex Rodriguez and Marc Lore have put $942 million into escrow as they prepare for binding arbitration that will determine whether they can finish their purchase of the NBA’s Minnesota Timberwolves and the WNBA’s Minnesota Lynx, according to multiple people familiar with the move.
Oct 22, 2024
NCAA Leaps to Block Mario Chalmers NIL Lawsuit
The NCAA, conferences and Turner Sports contend an antitrust lawsuit brought by Mario Chalmers and 15 other former college basketball players over the use of their NIL in broadcasts is barred by the passage of time and the limitations of law. Chalmers, who starred for the Kansas Jayhawks before playing nine years in the NBA, is leading a group of athletes who played for the 1997, 2008, 2011 and 2014 NCAA championship teams. The defendants raise several counterarguments, starting with the assertion that the claims are time-barred. Antitrust claims normally have a four-year statute of limitations.
Oct 22, 2024
Why WNBA Players Opted Out of Collective Bargaining Agreement
WNBA players reopened the debate around the economics of women’s basketball on Monday, announcing their decision to opt out of the WNBA’s collective bargaining agreement in search of a new deal. The current CBA, enacted in 2020, will now expire after next season instead of in 2027, giving the league and its athletes one year to agree to updated terms in what could become a tense round of discussions.
Oct 22, 2024
Nike’s New CEO Doubles Down on NBA, WNBA
One week after Elliott Hill started at the helm of Nike, the company announced a 12-year contract extension as the official on-court uniform and apparel partner of the NBA, WNBA, and G League. The last contract was an eight-year deal signed in 2015 and began in the 2017–2018 NBA season. That deal was reported to be valued at around $1 billion; CNBC reported the new deal is “much bigger” than that.
Oct 18, 2024
Tony Bennett Retirement Stunner Is About NCAA: ‘Not in a Healthy Spot’
Last week, University of Virginia men’s basketball coach Tony Bennett appeared to be going about business as usual. He participated in ACC media days and spoke about preparing for another season at the helm of the Cavaliers program. But then he took a short vacation with his wife, Laurel, during the university’s fall break this week—and made the decision to immediately retire, he says. Unregulated NIL (name, image, and likeness) payments, the transfer portal, and other issues in college sports had made his job untenable.
It’s an environment caused by the NCAA itself, which refuses to engage in any sort of reform until a court decision forces its hand. The solution to Bennett’s grievances, which he himself referenced, is to engage in collective bargaining. But the NCAA refuses to do so, because that would require athletes to be classified as employees.
On Thursday afternoon, the Virginia athletic department made the abrupt and shocking announcement of Bennett’s retirement. The following morning, Bennett held a press conference, explaining through tears that the current landscape of college sports has driven him out of coaching.
“I am no longer the best coach to lead this program in this current environment,” he said. “The game, and college athletics, is not in a healthy spot.” Bennett said he believes “there’s still a way in this environment. … But it’s complicated. To admit, honestly, that I’m not equipped to do this is humbling.”
Bennett isn’t the only one who is fed up. He’s the latest big-name coach of several to retire since the beginning of the NIL era: Villanova’s Jay Wright and Duke’s Mike Krzyzewski exited the game after the summer of 2021; Alabama football coach Nick Saban announced his retirement earlier this year; UNC’s Roy Williams did so right before NIL began. But Bennett, at 55, is the youngest of the group—as well as the most candid about the college sports landscape being the reason he cut his career short.
But Bennett continued, “There’s gotta be collective bargaining. There has to be a restriction on the salary pool that teams can spend. There has to be transfer regulation restrictions. There has to be some limits on the agent involvement to these young guys. And there are good agents and there are bad agents and they’re driving some of this stuff that we’re in.”
Oct 18, 2024
Barcelona Fined $500K for ‘Intentionally’ Misleading About PE Money
FC Barcelona tried to solve its financial headaches by selling off some of its future earnings. It’s now going to have to pay a roughly $542,000 fine for how it accounted for that money.
The Court of Arbitration for Sport dismissed Barcelona’s latest appeal in a ruling published Friday. The fine was originally imposed by UEFA in July 2023, and the club lost its appeal to that body in November of that year.
Several factors, including strict LaLiga financial rules and the COVID-19 pandemic, left Barcelona in a sticky financial situation. As a quick-fix move to help dig itself out, the club made deals to sell 25% of its next 25 years of broadcasting revenue from domestic matches to Sixth Street, a U.S.-based investment firm.
UEFA said, and the CAS confirmed, that Barcelona “intentionally” misreported that money to overstate its “break-even results” by about $290 million.
The CAS also said UEFA gave Barcelona a chance to fix the error, which would’ve lowered the fine to about $86,000, but the club didn’t correct it.
The approximate $542,000 fine was “actually rather mild,” the CAS said. “The Panel finds that the intentional nature of the violation in conjunction with the major impact of an overstatement of Relevant Income in an amount of [about $290 million] in a single season make the infringement severe, justifying also a severe sanction,” the court ruled.
Barcelona has been trying to recover from a financial headache for almost a decade. Its spending on players rose just as the pandemic cut revenue, and left the club violating tight LaLiga rules around spending. As superstars like Lionel Messi and Gerard Piqué have left the club, and Barcelona has signed younger players, the wage bill has gone down. The sale to Sixth Street will hurt its revenue in the future, but it helped bring in about $330 million last year.
Oct 18, 2024
NASCAR: Michael Jordan Suit Using Discovery As ‘Weapon’
NASCAR is returning the heat Michael Jordan brought them to court with.
In a court filing Wednesday, the racing company responded to the antitrust lawsuit filed by Jordan’s 23XI Racing and Front Row Motorsports, claiming the teams are using the “antitrust discovery process as a weapon.” The racing company asked for the motion of expedited discovery to be thrown out.
In its filing, NASCAR calls the suit “meritless” and accuses the plaintiffs, which include 23XI co-owner Denny Hamlin, of “alleging baseless antitrust claims in order to obtain commercial agreements they previously rejected.” NASCAR accused the racing teams of attempting “to extort more favorable contract terms.”
23XI Racing, owned by Jordan and Hamlin, and Front Row Motorsports, owned by restaurant entrepreneur Bob Jenkins, filed a joint suit Oct. 2 accusing NASCAR of using its monopoly power to bully racing teams in negotiations and hoard revenue, calling the France family, the company’s owners, “monopolistic bullies.”
The lawsuit argues NASCAR’s charter system stifles competition and binds teams to its series, race tracks, and suppliers. The France family owns many of the race tracks where NASCAR races are held. The suit came after two years of failed revenue-sharing negotiations between NASCAR and its racing teams.
In the lawsuit, the two racing companies claim NASCAR pressured the teams to agree to the charter deals in September of this year. It describes a “take-it-or-leave-it offer” from NASCAR, with teams privately saying they were “coerced” and had a “gun to our head” while signing.
Both companies refused to give in to NASCAR. In the initial lawsuit, 23XI and Front Row filed for a preliminary injunction allowing them to compete in the 2025 season despite not agreeing to the charters.
NASCAR introduced the charter system in 2016, which guaranteed 36 entries in every major Cup Series race and included revenue sharing. Of the 19 team owners originally granted charters in 2016, the lawsuit says only eight remain in NASCAR. The lawsuit says the league’s model comes without a path for owner profitability.
The charter system originally ran from 2016 to 2020, with deals getting automatically renewed through the end of 2024. With the current deal expiring, teams wanted a bigger slice of profits, a role in governance and rule-setting, and part of the revenue made off deals involving the league’s biggest stars.
In its response this week, NASCAR said it has been following contractual agreements to prepare for a 2025 season with just 32 charters. Given it’s not unprecedented to race without a charter, NASCAR requested that the plaintiffs’ injunction to race without a charter should be denied.
NASCAR also said in its response that it’s currently distributing funds 23XI Racing and Front Row Motorsports would have gotten to other teams that opted in to their 2025 charters before the deadline.
“We believe NASCAR exercises monopolistic control over the sport of stock car racing and has a history of engaging in exclusionary acts and restrictive agreements that stifle competition, Jeffrey Kessler, the lawyer for Front Row Motorsports and 23XI, told Front Office Sports in a statement. “We look forward to presenting our case for a preliminary injunction to Judge Whitney at the hearing on Nov. 4.”
Oct 16, 2024
NFL Eyes Multibillion-Dollar International Rights Package
There’s no league better at conjuring new, lucrative media rights out of thin air than the NFL. The league is once again playing the long game, eyeing the eventual sale of a separate international package that could fetch more than $1 billion in rights fees, sources tell Front Office Sports.
Oct 16, 2024
WEMBANYAMA SUES TEXAS MAN FOR ILLEGALLY PROFITING FROM HIS NIL
San Antonio Spurs star Victor Wembanyama on Tuesday sued a Texas man for illegally using his NIL to sell shirts, candles, hooded sweatshirts, coffee mugs, mousepads, magnets, baby bibs, beer mugs and wrapping paper.
Wembanyama, the 2023-24 NBA Rookie of the Year who led France to a silver medal in the 2024 Summer Olympics, filed a complaint in a Texas federal court against James T. Glodich, who is described as residing in Austin, Texas. According to Wembanyama, Glodich began an multifaceted plot to use his NIL about a month after the Spurs selected the 7-foot-3 French phenom with the first overall pick in the 2023 NBA Draft.
Oct 15, 2024
Sphere to Open in Abu Dhabi After Vegas Success
James Dolan has long envisioned opening replicas of his Las Vegas Sphere in locations around the world, but he wanted financial allies for these costly projects, which reached $2.3 billion to open Vegas. Dolan has found his partner for the next Sphere.
Sphere Entertainment and the Department of Culture and Tourism in Abu Dhabi announced Tuesday that the United Arab Emirates capital would be the home of the second Sphere.
Oct 15, 2024
Carter, McGrady, Altidore in Talks to Buy Buffalo Bills Stake
Former NBA stars Vince Carter and Tracy McGrady, and former U.S. Soccer star Jozy Altidore, all of whom played in Toronto, are in talks to buy minority stakes in the Buffalo Bills, according to multiple people familiar with the negotiations who were granted anonymity because the details are private.
The club, which is owned by the Pegula family, has been seeking investors. Earlier this year the Bills said they’d hired Allen & Co. to help explore the sale of a non-control stake, which was reported to be around 25%. (The Pegulas separately own the NHL’s Buffalo Sabres, which are not involved).
Oct 15, 2024
FIFA Ready to Negotiate Potential Transfer Rule Changes
IFA is set to begin high-level discussions about the intricacies of its lucrative player-transfer system after a recent court decision threw its legitimacy into question.
On Monday, 10 days after some of FIFA’s transfer rules were declared contrary to European Union law by the Court of Justice of the EU, soccer’s governing body announced it will open a global dialogue on the transfer system, involving key stakeholders—think leagues, clubs, agents, players’ unions—to adopt the policy in question, which is article 17 of FIFA’s regulations on the status and transfer of players. A statement said the move “is in line with FIFA’s strategic objective to further improve the transfer system.”
Oct 11, 2024
Jim Trotter, NFL Settle Racial Discrimination Lawsuit
Jim Trotter and his former employer, the NFL, have settled the reporter’s racial discrimination lawsuit.
He was let go by NFL Network after five years as a reporter in March 2023. Six months later, Trotter sued the league and its media arm, alleging he had been a victim of racial discrimination and retaliation.
Trotter is Black; his lawsuit claimed his contract wasn’t renewed because he repeatedly spoke out against the NFL’s lack of diversity in its offices, coaching ranks, and media arm.
He released a statement on X announcing the settlement Wednesday.
“The NFL and I have agreed to resolve my lawsuit,” Trotter said in the post. “I will be creating a scholarship foundation for journalism students at HBCUs and the NFL has agreed to make a donation in support thereof. I am proud to have the opportunity to help and support HBCU students achieve their goals and dreams, just as scholarships afforded me those opportunities when I was a student at Howard University.”
The NFL did not immediately respond to a request for comment on the settlement.
Trotter had filed the case in the Southern District of New York. His 53-page complaint said his contract wasn’t renewed by the NFL Network partially because he challenged commissioner Roger Goodell on the league’s diversity track record at his past two Super Bowl press conferences before he was let go.
“The N.F.L. has claimed it wants to be held accountable regarding diversity, equity and inclusion,” Trotter said in a statement at the time the suit was filed. “I tried to do so, and it cost me my job.”
Trotter also mentioned multiple NFL owners in his complaint, alleging the league “swept under the rug” comments made by Bills owner Terry Pegula and Cowboys owner Jerry Jones.
The suit alleged Pegula told an unnamed NFL Media reporter in 2020, “If the Black players don’t like it here, they should go back to Africa and see how bad it is.”
Trotter also claimed Jones said to him that same year that “If Blacks feel some kind of way, they should buy their own team and hire who they want to hire,” in response to Trotter asking about the lack of diversity in the upper ranks of NFL front offices. Both Jones and Pegula issued statements adamantly denying the comments, while an NFL spokesperson said the league investigated the Pegula comments and could not verify the unnamed reporter’s account.
Despite the friction, Trotter expected his contract to be renewed. He cited Sandra Nunez, who handles the NFL Network’s on-air talent, in his complaint telling him she “could not envision any reason why his contract would not be renewed.” Nunez asked Trotter whether he wanted a bigger role in his next deal, according to the complaint. On March 24, Nunez notified Trotter’s agent that his contract wasn’t being renewed.
Trotter landed with The Athletic in April 2023 as a national columnist, but he did not cover the league while he was suing it. A spokesperson from The New York Times, which owns The Athletic, did not immediately respond to a request for comment.
Oct 11, 2024
Haason Reddick Fired by Own CAA Agents $9 Million Into Jets Holdout
Haason Reddick will be continuing his holdout against the Jets with new representation.
CAA Sports, which has represented Reddick, has parted ways with the disgruntled pass rusher, according to multiple reports.
The split was over “philosophical differences,” NFL Network reported Thursday, with CAA “trying to broker a deal” and Reddick fully “dug in.”
Reddick has concocted one of the stranger holdouts in recent NFL memory. The Jets traded for the Pro Bowler in March from the Eagles for a conditional 2026 third-round pick and shortly after, reported to the team facility in Florham Park, N.J., for a physical and press conference, but hasn’t been back since. At his press conference, Reddick didn’t sound like a player about to hold out.
“I know the juice I’m going to bring,” Reddick said at his April press conference. “Hopefully it rubs off on the guys. Hopefully their energy does the same for me. I looked at the roster—that was one of the first things that I did when I saw the trade—and I can pretty much guarantee it’s going to be some great ball being played.”
Reddick has 58 sacks over seven NFL seasons, 27 of which came in the past two seasons with the Eagles. In 2022, he led the NFL with five forced fumbles.
The Jets traded for Reddick in the final year of his contract, which pays $14.25 million. Before the trade, the Jets had a negotiating window with Reddick where the team offered a short-term extension, the terms of which were never publicly reported. Reddick turned it down. The Jets have said they traded for Reddick with the understanding he’d report to offseason workouts despite not having a new deal.
Reddick can’t be traded back to the Eagles, who could use him, because NFL rules state a team can’t trade him and reacquire him for two years. If Reddick does not report to the team by Week 10, the Jets will retain his rights for the 2025 season, costing Reddick his upcoming free agency.
Instead, he asked for a trade in August, which has yet to happen, and has lost about $9 million in the standoff—$5 million in league-mandated fines for missing summer workouts and $4 million in missed game checks. Jets GM Joe Douglas initially dismissed Reddick’s request and expected him to report.
The Jets are 2–3 despite having Aaron Rodgers available and just fired coach Robert Saleh.
Owner Woody Johnson held a press conference after he unilaterally fired Saleh this week. There, he pleaded for Reddick to report.
“Haason, get in your car, drive down [I-]95 and come to the New York Jets, and we can meet you and give you an escort right in the building,” Johnson said Tuesday on a Zoom call with reporters. “And you’ll fit right in and you’re going to love it here and you’re going to feel welcome and you’re going to accomplish great things with us.”
Oct 11, 2024
As Jon Gruden Cranks Out TikToks, He Notches Legal Win Against NFL
Jon Gruden’s NFL return with the Raiders didn’t lead to much winning, but he recently got one in court against the league.
The Supreme Court of Nevada agreed to rehear Gruden’s case against the league and commissioner Roger Goodell. The former coach and commentator sued both parties alleging they interfered with his employment when he resigned as coach. The news was first reported by ProFootballTalk.
Gruden resigned as head Raiders coach in October 2021 in light of an investigation that revealed he used racist, misogynistic, and homophobic slurs in emails to then-Washington GM Bruce Allen over a seven-year period while he worked as a commentator for ESPN. Some of Gruden’s language in his emails were directed toward Goodell.
Gruden filed the lawsuit in November 2021 shortly after resigning and is seeking monetary damages. In it, he alleged the NFL forced him to resign by leaking the emails —reported by The Wall Street Journal and The New York Times—which destroyed his career and some of his endorsements.
In May, Gruden lost a bid for the Supreme Court of Nevada to reconsider its ruling that allowed the NFL to move the case to private arbitration. This week’s ruling means Gruden’s case will be reheard by a panel of seven judges instead of the three that ruled 2-to-1 in favor of the league.
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Since leaving the Raiders, Gruden has served as a consultant for the Saints and the Milano Seamen, a European football team, in addition to increasing his social media presence.
Gruden launched a YouTube show (164,000 followers) in September called “Gruden Loves Football” and a TikTok account with the same name (around 71,000 followers) in which he discusses recent games in what some viewers could describe as over the top. One segment, for instance, explains what “has me feeling nicey.”
Oct 8, 2024
What's next after House v. NCAA settlement gains preliminary approval
The most significant settlement in college sports history has received another massive boost.
Judge Claudia Wilken granted preliminary approval of a proposed settlement in the House, Hubbard and Carter antitrust cases on Monday afternoon, opening a door for a complete reshaping of the way in which college athletic departments operate.
Oct 8, 2024
NBA Says TBS No ‘Match’ for Amazon as Legal Row Heats Up
The NBA has fired another salvo against a longtime broadcast partner whose impending divorce from the league has spawned a major legal battle.
The NBA on Wednesday filed a brief urging New York Judge Joel M. Cohen to dismiss TBS and Warner Bros. Discovery’s breach of contract lawsuit. The brief responds to a recent filing by the plaintiffs in which they attempt to convince Cohen to deny the NBA’s motion to dismiss.
Oct 8, 2024
Utah Hockey Club’s NHL Debut Week Disrupted by Carriage Dispute
The Utah Hockey Club will make its NHL regular-season debut on Tuesday in a national telecast on ESPN, but it could be shut out from local viewers thereafter thanks to a carriage dispute.
Comcast and Scripps Sports failed to come to terms on an agreement where the cable operator would carry independent local affiliate KUPX (Utah 16). Utah’s first local-only broadcast is set for Thursday when it travels east to play the New York Islanders.
Oct 4, 2024
‘Sour Grapes’: Lawyers Battle Over Landmark Settlement to Pay College Athletes
The landmark House v. NCAA settlement—already arguably on the rocks—is facing yet another objection.
This time, it’s from the lawyers who won the O’Bannon v. NCAA case that paved the way for college athletes to be paid for their name, image and likeness.
On Thursday, a group of seven current and former athletes represented by attorney Michael Hausfeld filed an objection arguing that the terms in the proposed House settlement range from unfair to flat-out illegal.
Those terms include $2.8 billion in damage payments to current and former college athletes, a revenue-sharing model where schools would pay athletes directly, and new restrictions on NIL collectives.
Among the athletes are Iowa men’s basketball player Jordan Bohannon, known for advocating for NIL rights during his time as a player, and former Vanderbilt and Georgetown sprinter Kaira Brown, another outspoken athletes’ rights advocate.
House plaintiff lawyers Steve Berman and Jeff Kessler dismissed the objections in comments Thursday to The Athletic. “We have negotiated an almost $3 billion settlement for college athletes. The Hausfeld firm never obtained anything for damages class in the case brought against the NCAA,” Kessler said. Berman called it “sour grapes,” noting he and Kessler were the attorneys on NCAA v. Alston, a case over athlete educational benefits that, while not about NIL directly, also helped pave the way for the current era.
The new objection echoes several already raised in written objections, as well as concerns voiced by Northern District of California Judge Claudia Wilken during a Sept. 5 hearing.
It argues the damage payments for athletes who weren’t allowed to participate in NIL before 2021, which amount to about $2.8 billion, are too low. It also suggests that the payment structure, highly controversial among non-power conference commissioners and schools, is “unfair to smaller member institutions.”
The objection takes issue with the revenue-sharing proposed in the injunctive relief portion of the settlement, which would allow schools to share revenue with players up to only about 22% of revenue. The revenue-sharing cap is arbitrary and much lower than the percentage that pro athletes receive—around 50% in the collective bargaining agreements in major U.S. men’s leagues—the objection says, and could limit the money athletes earn in the future. It binds future athletes to an agreement in which they not only have no say, but also would be “worse off.” (Berman and Kessler have argued athlete compensation would equal 50% when the House settlement revenue-sharing deal is added to scholarships and other existing benefits.)
The objection also says the restriction on NIL deals is illegal. The restriction would allow a third party to prohibit NIL collective and booster deals over $600 if they appear to be “pay-for-play” deals rather than “fair-market value.” Judge Wilken took issue with this as well, but the NCAA’s lawyer, Rakesh Kilaru, said the governing body likely wouldn’t agree to a settlement without it.
Finally, the objection points out the NCAA wants to use the settlement to get a federal law passed that would block college athletes from being legally declared employees. The NCAA, for its part, has said multiple times that that’s exactly what it intends to do with the settlement.
The parties filed an amended complaint with limited changes last week. Wilken will decide on whether to grant preliminary approval to the amended settlement, or whether the parties should prepare for a trial that would likely begin early in 2025.
Oct 4, 2024
FIFA’s Multibillion-Dollar Transfer Market at Risk After Court Ruling
During FIFA’s most recent international transfer window, clubs committed to spending nearly $6.5 billion on acquiring new players. But a major court ruling announced Friday could significantly change that lucrative process.
Many longstanding transfer rules that govern moves between teams across the globe have been declared contrary to European Union law, the Court of Justice of the EU said. Former French defender Lassana Diarra, who played for teams like Paris Saint-Germain and Chelsea, challenged several of FIFA’s rules in a Belgian court.
Specifically, the court took issue with rules requiring clubs to be compensated if they deem a player has terminated his contract without just cause (for example, freely moving from one team to another). FIFA and the players’ union FIFPRO released separate statements indicating they wanted to analyze the ruling in depth before commenting further.
While Friday’s ruling may have wide-reaching implications for how the richest soccer teams operate, it will likely be years before any concrete changes come to be, if at all.
American Adaptation:
Separately from the court ruling, FIFA has announced new regulations for next summer’s revamped Club World Cup in the U.S. that will make it easier for impending free agents to join and play for a new team at the tournament.
Many player contracts are set to expire June 30, 2025, but the Club World Cup begins June 15, set to be played in 12 NFL and MLS stadiums across the country. If players wish, they will be able to sign with a new club between June 1 and 10 next year.
Oct 4, 2024
At Least Three People Claim Ownership of Ohtani 50/50 Ball in Lawsuits
On Sept. 19, Shohei Ohtani hit a home run to left field in Miami, making him the first baseball player ever to hit 50 homers and steal 50 bases in the same season.
After a scrum for the historic ball, Chris Belanski emerged with it and put it up for auction with Goldin a few days later. The courts will have to decide what happens next.
At least three people are claiming ownership of the ball, with two of them suing Belanski and each other in Florida courts. Earlier this week, Joseph Davidov filed a suit in Florida’s 11th judicial circuit court against Belanski, Belanski’s friend Kelvin Ramirez, and 18-year-old Max Matus. Davidov is seeking possession of the ball, an injunction to stop the auction and more than $50,000 in damages.
Davidov’s suit follows a similar one from Matus, who is suing Belanski, Ramirez, and Goldin, and also seeking an injunction against selling the ball. Both Davidov and Matus claim they had possession of the ball and lost it by having their arm pinned, with Matus’s suit specifically naming Belanski for trapping his arm between his legs while Davidov’s suit says “an unknown fan” did him in.
The highest bid for the ball is currently sitting at $1.8 million, with the auction set to close Oct. 22. The ball can’t formally be sold until after a hearing scheduled for Oct. 10, which stems from Matus’s suit in Miami-Dade County Court.
Oct 2, 2024
TNT Has Staked Its Claim in College Sports Broadcasting
Since 2011, TNT has had broadcast rights to only one major college sports property: men’s March Madness. But in one year, the network has quietly amassed a portfolio of NCAA rights.
Over the summer, TNT Sports—which includes TNT, TBS, truTV, and Max—won the rights to a slate of College Football Playoff games, considered the crown jewel of college sports rights. It also struck new deals with the Mountain West and Big East, as well as high-profile non-conference basketball tournaments.
Oct 2, 2024
NHL Labor Talks Set to Open During Unprecedented Growth and Stability
The National Hockey League’s labor deal with the NHL Players’ Association doesn’t expire for nearly two years. But talks on a new collective bargaining agreement are set to open soon, and the two sides will do so in a period of historic strength for the sport.
Oct 2, 2024
MICHAEL JORDAN-OWNED RACING TEAM SUES NASCAR, JIM FRANCE
23XI Racing, the team co-owned by NBA legend Michael Jordan, announced that it jointly filed an antitrust lawsuit along with Front Row Motorsports against NASCAR and NASCAR CEO Jim France on Wednesday, arguing that the sport’s governing body has unlawfully stifled fair competition.
Oct 2, 2024
Private Equity Firms Buy Rival Hockey Brands CCM and Bauer
Private equity firms have bought stakes in two of hockey’s biggest brands. Control of Bauer, which manufactures skates, sticks, helmets, and other equipment for the sport was acquired Tuesday by Fairfax Financial Holdings, which bought Bauer’s parent company, Peak Achievement Athletics. Peak also owns equipment makers Cascade Lacrosse and Maverik Lacrosse.
Oct 1, 2024
North Carolina judge rules public school athletes can profit from NIL
A North Carolina judge ruled Tuesday that public school athletes in the state can profit from NIL. The ruling stems from the lawsuit the mother of Class of 2026 Tennessee five-star quarterback commit Faizon Brandon brought against the North Carolina Board of Education and Department of Public Instruction. Currently 39 states – through laws or local athletic associations – allow athletes to participate in NIL deals without forfeiting the ability to play high school sports. North Carolina remains one of the 11 that does not allow high schoolers to capitalize on NIL. That will now change.
Oct 1, 2024
Ex-Jaguars employee Amit Patel sues FanDuel for $250 million
A former Jacksonville Jaguars employee who stole more than $22 million from the team sued FanDuel in federal court on Tuesday, claiming the sportsbook "exploited" his gambling addiction and intentionally ignored its responsible gaming and anti-money laundering protocols.
In a civil suit filed in the Southern District of New York, an attorney for Amit Patel alleges that FanDuel incentivized Patel to keep playing daily fantasy sports despite Patel exhibiting signs of problem gambling. According to court documents, he transferred approximately $20 million to FanDuel.
Oct 1, 2024
Dartmouth Won’t Recognize Hoops Union and Bargain, NLRB Told
It’s been nearly eight months since NLRB regional director Laura Sacks found that Dartmouth College men’s basketball players are employees within the meaning of the National Labor Relations Act. And it’s been seven months since the players unionized with the Services Employees International Union Local 560. But to date there has no bargaining between Dartmouth and the union, and the agency’s board hasn’t indicated if it will accept Dartmouth’s request for review (appeal), let alone set a schedule.
Sep 27, 2024
Tiger Woods in Trademark Dispute Over New Logo
Tiger Woods finds himself in the bunker with his new logo.
The golfer’s Sun Day Red apparel line is facing a trademark dispute from Tigeraire, a company that makes cooling products for athletes. Tigeraire filed a notice of opposition with the U.S. Patent and Trademark Office accusing Woods and his company of “unlawfully hijacking” the company’s logo into their own.
In May, Woods moved away from his longtime personal “TW” logo that featured his initials stacked on top of each other, which was a staple during his 27-year tenure with Nike. Woods still owns the trademark for that logo, but doesn’t currently plan to use it with his new company.
Both logos are images of a tiger running (below; Opposer is Tigeraire, and Applicant is Tiger Woods Sun Day Red brand).
Sep 27, 2024
UNLV Rebuffs Gambling Exec’s Offer To Pay Spurned QB $100K
Earlier this week, UNLV quarterback Matt Sluka announced he would not play for the rest of the season after not receiving $100,000 that was allegedly promised to him upon transferring from Holy Cross. Sluka retained his redshirt by exiting the program before playing in more than four games this season.
This being Las Vegas, a gambling executive tried to fill the gap.
In an attempt to keep Sluka in Sin City, Mike Palm, the vice president of Vegas-based sportsbook Circa Sports, reached out to the school and offered to pay the $100,000, according to the Action Network. UNLV passed on the opportunity and said the quarterback is no longer with the program.
The Rebels are currently 3-0 and off to one of their best starts for a program that doesn’t have much history since Randall Cunningham starred for them in the ‘80s. They’re the only Group of Five team ranked in either the AP or coaches’ polls, giving them an outside shot at making college football’s expanded playoff.
UNLV and its collective have denied Sluka’s claims about the purported $100K oral offer. Even the NCAA has weighed in, saying future NIL disputes like this need to be avoided. The situation could have major ramifications throughout college sports.
Palm said when he saw Sluka’s social media post announcing his departure, he asked his boss, Circa Sports CEO Derek Stevens if they could possibly help. The NCAA forbids players from accepting gambling-related NIL deals, but Palm told the Action Network that there were non-gambling NIL deals they were looking at offering Sluka before being told he was no longer with the program.
“Mr. Stevens was willing to help the university get there,” Palm told Action Network. “One hundred thousand dollars is a small price to keep UNLV’s College Football Playoff hopes alive.”
UNLV, sitting at No. 23 in the coaches’ poll, faces Fresno State on Saturday night in a tough Mountain West conference matchup. Messages for comment from Circa Sports, UNLV and the Friends of UNLV collective were not immediately returned.
Sep 27, 2024
Lawyers File New Documents in Attempt to Save House v. NCAA Settlement
The NCAA, Power 5 conferences, and plaintiff attorneys on Thursday night filed an amended settlement proposal in the House v. NCAA case that included changes to issues raised by Northern District of California Judge Claudia Wilken.
The amended settlement still grants the NCAA the ability to block certain NIL (name, image, and likeness) deals—an issue Wilken expressly told lawyers to “go back to the drawing board” to address.
The changes are an attempt by lawyers to satisfy Wilken’s concerns without taking out too many of the provisions the NCAA considers integral to the deal. The NCAA had made it clear, for example, that if the settlement didn’t include the ability to block certain NIL deals, the NCAA may be willing to kill the settlement and go to trial.
The settlement, first filed in July, would require the NCAA and power conferences to pay $2.8 billion in damages, as well as allow schools to share a percentage of revenue with athletes for the first time in history (in the beginning, up to around $22 million). But the settlement also included new athlete compensation restrictions, establishing a third-party to review and potentially block any NIL deal over $600 that was seen as pay-for-play, and not “fair market value.” It was a direct attempt at controlling NIL collectives.
During a hearing on Sept. 5, Wilken’s strongest objection appeared to be to the NIL deal approval process. Wilken was wary of giving the NCAA the power to dictate which NIL deals athletes could or couldn’t sign. She raised the issue of the definition of a booster, and asked if the approval process would end up taking existing deals away from athletes (something she said is not very popular).
The attorneys filed a brief that explained that because NCAA rules already prohibit NIL deals used as pay for play, the settlement wouldn’t actually prohibit any deals that aren’t already against the rules. It also explained that the NIL restrictions would only apply to entities that resembled collectives—whereas before, all third parties had to go through that process.
The settlement provided a new definition of “booster” (a longtime legal dispute). Some of the new criteria include a person who has contributed more than $50,000 to a school or NIL collective, someone who works for an NIL collective, or someone who helps with recruiting.
But it did little else to change the terms of the settlement regarding the NIL restrictions.
Wilken will now have the opportunity to decide whether to accept the settlement and allow a monthslong process for final approval to go forward. It’s unclear if the new changes and explanations provided will be enough to sway her.
Sep 25, 2024
REGGIE BUSH NIL SUIT LIKELY TO SPUR TIMELINESS DEFENSE FROM NCAA, USC
A couple of weeks after former Michigan football stars from the 2000s sued the NCAA and Big Ten Network on antitrust grounds for denying them NIL rights, former USC football star Reggie Bush is now suing the NCAA, Pac-12 and USC on the same basic theory.
Their cases will face legal defenses that depict the claims as time barred and opportunistic attempts to rewrite rules the former players accepted as conditions of eligibility.
Sep 25, 2024
DARTMOUTH CHALLENGES NLRB COMPLAINT IN MEN’S BASKETBALL CAS
In a sign that a recent U.S. Supreme Court ruling on a case that has nothing to do with sports could greatly impact the future of college athletics, Dartmouth College on Tuesday answered a complaint for an unfair labor practice charge by insisting its men’s basketball players are relying on “an impermissible attempt to create new law that is not entitled to deference and will not withstand judicial scrutiny.”
Sep 24, 2024
Pac-12 Sues Mountain West, Claims Eight-Figure Poaching Fees Are Illegal
The Pac-12 is trying to get out of damage payments for poaching Mountain West members.
On Tuesday, the conference filed a lawsuit in federal court in the Northern District of California, arguing that some of the terms of its football scheduling partnership with the Mountain West are illegal, and therefore unenforceable. It’s the latest move in a larger conference realignment battle between the Pac-12 and Mountain West.
Sep 24, 2024
Reggie Bush Suing NCAA Again, This Time for NIL Back Pay
Reggie Bush is suing the NCAA again.
The former USC star and Heisman Trophy winner has filed a lawsuit against his alma mater, the NCAA, and Pac-12 Conference over exploitation of his NIL (name, image, and likeness) during his time with the Trojans. The lawsuit is similar to one filed this summer by players from the 1983 NC State men’s basketball team.
Sep 24, 2024
NLRB’s College Athlete Rulings to Face Election Fallout
Arguably the most important legal issue facing college sports is whether all, some or no college athletes are employees of their schools, conferences and the NCAA.
Resolution of that issue could lead to hundreds of thousands of new university employees, some of whom might unionize, with conferences and the NCAA also on the hook as joint employers.
Sep 20, 2024
49ers Denied Motion to Dismiss Wheelchair User’s ADA Lawsuit
In a case that could set important precedent for how teams and stadiums handle wheelchair seating requests, a federal district judge Wednesday denied the San Francisco 49ers’ motion to dismiss an Americans with Disabilities Act lawsuit brought by 78-year-old Enrique Maya, who uses a wheelchair since suffering from polio as a child, and his son, Rick Maya.
“We believe all fans should be able to enjoy events regardless of accommodation needs, and we comply fully with all accessibility regulations,” a 49ers spokesperson told Sportico in a written statement. “We cannot comment further on an ongoing piece of litigation.”
The case centers on whether the ADA requires a team to provide alternative seating for a wheelchair users whose ticket is not for a wheelchair accessible seat.
Sep 20, 2024
Hockey Teams Face the Music Over Copyright Infringement
What do Donald Trump, the Philadelphia 76ers and the Utica Comets have in common?
They’ve all been sued this year for copyright infringement over their use of songs without the permission of the artists and companies who own the music.
The latest lawsuit to raise music theft claims was brought last Thursday by Associated Production Music (APM), a production music company with a catalog of more than 650,000 tracks. Those tracks include “Heavy Action” (a.k.a. The Theme for Monday Night Football) and “The Big One” (a.k.a. The Theme for The People’s Court). APM has the copyrights to recordings, meaning APM possesses the exclusive right to license others to use their music in exchange for payment of royalties or fees.
In a complaint filed in a California federal district court, APM accuses the American Hockey League, which is the primary developmental league for NHL franchises, and nine AHL teams of copyright infringement.
AHL teams, APM contends, use their Facebook, Instagram, YouTube and other social media channels to engage in “rampant infringement” of APM’s recordings. APM cites more than 230 specific videos in which the AHL or a team used an allegedly infringed song in a video. Major social media platforms require users to have copyright permission, and they enable copyright holders to submit takedown requests. As Sportico has detailed, UFC, the NFL and NBA have pushed for legal changes that would empower content creators to more quickly stop online piracy of their live sporting events.
Many of the allegedly infringing AHL videos have already been removed or made inaccessible to the public. However, as of this writing, the Tucson Roadrunners still have up a 30-second video that APM says uses blues and rock song “Back in Business.”
APM demands monetary damages that reflect profits from infringement or up to $150,000 for each infringed work. The company also seeks an injunction to block the AHL and teams from using its songs. APM notes that AHL has a large presence on social media platforms, with over 3.25 million fans following the league and its teams, a point suggesting the videos have been seen by many.
APM v. AHL arrives a few months after Kobalt Music Publishing American and other companies that own or have licensed interests in hit songs sung by Britney Spears, Justin Bieber and Doja Cat sued 14 NBA teams for infringement. The NBA case involves teams accused of infringement by synchronizing songs with teams’ promotional videos. That case remains in litigation.
Trump has likewise faced copyright lawsuits over his campaign’s use of music during rallies and in videos. Earlier this month, U.S. District Judge Thomas Thrash ordered Trump to stop using the song “Hold On, I’m Coming,” which was co-written and sung by the late Isaac Lee Hayes Jr. (the version of the song at issue was sung by Sam & Dave). The estate of Hayes sued Trump in August, arguing use of the song in rallies and in videos of past rallies was infringement. Thrash’s order does not include the videos, however, as he reasoned that videos of previous events don’t pose the same risk of imminent harm to the estate.
The AHL and nine teams will answer APM’s complaint and seek its dismissal. Potential defenses include the league and teams insisting they had permission through a license, or that reasonably believed they had permission based on business arrangements. Music licensing agreements, including when they involve artists and publishing companies, can prove complicated and lead to conflicting interpretations.
The defendants could also argue fair use, which means lawful copying of others’ works in certain circumstances. Those circumstances can include news reporting or for parody or criticism. Fair use analysis weighs several factors, including here the purpose and amount of music copying, to what degree the copying undermines sales of the song and whether and to what degree the original song is transformed into a new work in the videos. One hurdle for a fair use defense is that while some of the social media videos share news or information–such as a team winning a game or letting fans know about how to buy tickets–they might more accurately be regarded as marketing devices intended to boost engagement and generate revenue.
Sep 20, 2024
Jeremiah Smith Becomes Red Bull’s First College Football NIL Athlete
Front Office Sports keeps you updated on the latest NIL (name, image, and likeness) deals shaping college sports. Here’s who is cashing in now:
Athlete: Jeremiah Smith
Sport: Football
School: Ohio State
Brand: Red Bull
The deal: Smith, a true freshman who already has 211 receiving yards and three touchdowns after two games with the Buckeyes, is becoming the energy drink company’s first college football endorser. “Off week, got my wiiings,” he posted in a video on his social media channels announcing the partnership, which a source tells Front Office Sports is for multiple years.
The 18-year-old receiver joins Red Bull’s NIL roster, which includes women’s basketball players MiLaysia Fulwiley (South Carolina) and Mikaylah Williams (LSU); volleyball players Bergen Reilly (Nebraska), Madisen Skinner (Texas), and Olivia Babcock (Pitt); and Boston College hockey player Will Smith.
Sep 18, 2024
SHANNON SHARPE DEFEATS BRETT FAVRE IN DEFAMATION SUIT APPEAL
A three-judge panel on the U.S. Court of Appeals for the Fifth Circuit Monday affirmed a trial judge’s ruling last fall to dismiss retired NFL quarterback Brett Favre’s defamation lawsuit against sports talk show host and fellow retired NFL player Shannon Sharpe.
Sep 18, 2024
Brooklyn Nets Sued Over ‘Netaverse’ Trademark Infringement
The Brooklyn Nets are starting the NBA season in another kind of court. The team, along with the YES Network, its television carrier, Canon U.S.A. and the NBA are being sued by software company Phinge in a California court for trademark infringement for the “Netaverse” trademark.
Sep 17, 2024
MLBPA Sues FanDuel, DraftKings Over Use of Player Images
The MLBPA filed a lawsuit against DraftKings and Bet365 Group in U.S. District Court in Philadelphia on Monday. It filed a separate lawsuit against FanDuel and Underdog Fantasy in New York State court. The news was first reported by Law360.
The players’ union argues the betting sites are using their images without permission, and the union seeks compensation and punitive damages.
Sep 17, 2024
Is Venu Dead? Disney Still Pushing Forward With Appeal of Injunction
Before a federal judge granted a temporary injunction last month that FuboTV sought against Venu Sports, the three media giants behind Venu warned that such a decision would “terminate the joint venture.”
But in the one month since the injunction was granted, Disney, Fox, and Warner Bros. Discovery have not abandoned Venu. The trio has pushed forward with an appeal and is preparing for a trial as part of the same antitrust case Fubo launched days after the joint venture was first announced (minus a name, pricing structure, or launch date) in February.