Lloyd Howell stepped into his role as the executive director of the NFL Players Association ambitiously, aiming to lead the organization to new heights. However, his initial major business decision has resulted in a significant financial blow. The NFLPA has been ordered to pay a hefty sum of $7 million to Panini following an arbitration ruling over the termination of their exclusive trading card contract last year, according to a report by Eriq Gardner of Puck.news.
The dispute erupted when the NFLPA decided to sever ties with Panini after witnessing a mass exodus of key Panini employees to rival company Fanatics. The NFLPA cited a “change in control” clause as the reason for terminating the contract. Nevertheless, Panini argued that this move was merely a facade for the NFLPA to shift alliances to Fanatics, a claim that the arbitrators ultimately validated.
In response to the ruling, Panini’s attorney, David Boies, emphasized their stance, stating, “The unanimous decision of the arbitrators confirms what we have said from the beginning: The NFLPA’s termination of its contract with Panini violated its legal obligation to Panini, its moral obligation to fans and collectors, and its fiduciary duties to its members.” Boies further expressed that the NFLPA’s actions had led to substantial financial damages and lost royalties for its members, with Panini taking a hit despite their commitment to continue supplying cards post the purported termination.
While Fanatics was not directly involved in the arbitration, Panini has taken additional legal action by filing a separate lawsuit against them, citing antitrust and tortious interference claims. Notably, the NFLPA remains silent on the matter despite requests for comment from Puck.news.
This recent turn of events not only deals a financial blow to the NFLPA but also casts a shadow over its decision-making processes and the integrity of its commitments to its members, fans, and the broader trading card community. The repercussions of this arbitration ruling are likely to reverberate through the organization, prompting a reassessment of its strategies and allegiances in the future.