After years of hard-fought litigation, a settlement seemed like it had finally been reached between former players and the National Football League for more than $750 million in favor of payment to the injured players’ and their families, with a large amount of funding also going directly to medical research for head trauma from football-related injuries. However, some members of the class of former players immediately objected to the settlement, and it seems that many of them are still unhappy with the settlement agreement nearly …
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NCAA Athlete Compensation: Student-Athletes File Petition for Rehearing
On Wednesday, October 14, 2015, former student-athletes filed a petition with the Ninth Circuit for a rehearing en banc on its decision to uphold the rule that NCAA athletes do not need to be compensated beyond the cost of attending college.
The federal trial court originally held that: (1) universities may grant to student athletes the full cost of attendance; and (2) universities may allow student athletes to receive up to $5,000 per year as compensation for the use of their names and likenesses. On …
Continue ReadingSupreme Court May Hear Case Involving Cheerleader Uniforms
A clothing manufacturer has asked the Sixth Circuit to stay a court mandate issued against them back in August, where the federal appellate court reversed a district court’s decision that cheerleading uniforms cannot be copyrighted. The case, Varsity Brands, Inc. et al v. Star Athletica, LLC, was initially brought in 2010, seeking to uphold protection granted by the U.S. Copyright Office to Varsity in regards to their specific uniform design, which they believed Star had compromised at the time.
While the district court first …
Continue ReadingPGA Tour – Not Quite Out of the Rough Just Yet
On Friday, October 9, 2015, attorneys for a group of professional caddies filed a motion in opposition of dismissal against the PGA Tour, citing violations of antitrust law, the Sherman Act, and the Lanham Act. The class action lawsuit, originally filed in February, centers around the issues of forced advertisement without proper remuneration and unfair trade practices, as the caddies argue the Tour obligated the plaintiffs wear bibs adorned with corporate sponsors not chosen by them at televised tournaments.
In opposition to the now second …
Continue ReadingNCAA, EA Seeking Attorney Sanctions
On Monday, October 12, 2015, defendants NCAA and Electronic Arts, Inc. (EA) filed a petition urging a federal court to sanction plaintiffs’ attorney Scott Kron for “profane” and “outrageous” outbursts during a meeting.
The lawsuit — a class action alleging unauthorized use of student-athletes’ names and likeness — ended in a $60 million settlement in June. However, two student athletes objected to the settlement and have appealed the court’s denial of their objections. Nathan Harris, one of the two objectors, is represented by attorney Scott …
Continue ReadingYankees Minor Leaguer Sues “Agent”
On Friday, October 9, 2015, a minor league player in the New York Yankees farm system filed a lawsuit alleging that a man posing as a sports agent cheated him out of $100,000.
The player, Angelo Gumbs, was drafted by the New York Yankees in 2010, and currently plays second base for the Tampa Yankees in Florida. According to the complaint, Richard Earl Davis, Jr. represented that he was a baseball agent certified by the Major League Baseball Players’ Association (MLBPA). Gumbs then signed a …
Continue ReadingFootball Insurance? You Bet
This post first appeared on Goldberg Segalla’s Professional Liability Matters blog.
Professional athletes are worth a lot of money. When they are on top of their game they are capable of raking in the dough for themselves and their organizations. However, if they become injured or otherwise unable to perform a lot of money is at stake. Therefore, it’s not unusual for athletes to obtain disability insurance policies, covering them in the event of a career ending injury. In fact with respect to collegiate athletes, …
Continue ReadingEx-Knick Entitled to Workers’ Compensation Benefits Under California Law
On October 1, 2015 the Court of Appeal of California, Second Appellate District, concluded that former NBA player Durant “Rudy” Macklin was entitled to workers’ compensation benefits.
Macklin, a former Louisiana State University standout, was drafted by the Atlanta Hawks and played two seasons with the team before being traded to the New York Knicks. Macklin would later sign a contract with the Los Angeles Clippers though he never played an NBA game for the team. Macklin alleged: (i) that while he was with the …
Continue ReadingThe Power of Endorsement Deals: Is Equity the New Compensation?
Professional athletes are becoming brands; walking, talking brands. Their success on the playing field adds value to their brand. Ultimately, companies want to use the athlete’s brand to sell their product; this gives birth to an endorsement contract. Companies pay huge sums of money for athletes to promote their products. The more powerful an athlete’s brand is, the more money a company is willing to pay to get their products in that athlete’s hands. Athletes earning potential in the endorsement arena is limitless; simply the …
Continue ReadingClass Action Filed Against DraftKings, Fan Duel
On Thursday, October 8, 2015, Fantasy Sports giants DraftKings and FandDuel were hit with a class action lawsuit on the heels of a data leak scandal.
The lawsuit — Johnson v. Fanduel, Inc. et al — was filed by Adam Johnson, a Kentucky resident, in the United States District Court for the Southern District of New York. The complaint makes seven different claims against DraftKings and FanDuel, including fraud and misrepresentation, violation of the New York False Advertising Act, and civil conspiracy, among others.…
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