Lloyd Howell’s first significant move as the head of the NFL Players Association has backfired, costing the organization a hefty sum of $7 million in a court ruling against them by Panini, a trading card company. The dispute arose when the NFLPA decided to terminate its exclusive trading card contract with Panini after several key employees made a switch to the rival company Fanatics.
The NFLPA cited a “change in control” clause as the reason for ending the contract, arguing that the departures of the employees constituted a change significant enough to warrant termination. However, Panini argued that this move was merely a disguise for the NFLPA to align itself with Fanatics. The arbitrators ultimately sided with Panini, affirming that the NFLPA violated its legal obligations, moral responsibilities to fans and collectors, and fiduciary duties to its members.
David Boies, Panini’s attorney, expressed satisfaction with the ruling, emphasizing that the NFLPA’s actions had not only resulted in financial losses but also impacted fans, collectors, and players. Boies highlighted that Panini’s decision to continue supplying cards despite the contract termination was in the best interest of all parties involved.
While Fanatics was not directly involved in the arbitration process, Panini has taken further legal action by filing a separate lawsuit against them, alleging antitrust violations and tortious interference. The NFLPA has refrained from commenting on the matter when approached for a statement by Puck.news.
The financial setback faced by the NFLPA in this case is significant, but the repercussions extend beyond monetary losses. The arbitration ruling raises concerns about the NFLPA’s decision-making processes, its allegiance to its members, fans, and the wider trading card community. The outcome underscores the complexities and stakes involved in business dealings within the sports memorabilia industry.
