Lloyd Howell, in his debut as the executive director of the NFL Players Association (NFLPA), faces the repercussions of a pivotal business choice. As reported by Eriq Gardner of Puck.news, a staggering $7 million loss to Panini has been mandated following an arbitration judgment concerning the dissolution of their exclusive trading card deal the previous year.
The clash initiated when the NFLPA opted to terminate the contract with Panini subsequent to the departure of key Panini personnel to the competitor, Fanatics. Citing a “change in control” clause as grounds for contract termination, the NFLPA justified its decision. Nonetheless, Panini countered that this rationale was a mere facade for pledging allegiance to Fanatics, a notion corroborated by the arbitrators.
David Boies, legal representative of Panini, shared with Gardner, “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 continued, “The PA’s actions cost its members millions of dollars in damages and lost royalties.”
While Fanatics did not partake in the arbitration proceedings directly, Panini has taken legal action by filing a separate lawsuit on grounds of antitrust and tortious interference against them. As of now, the NFLPA has remained silent in response to inquiries from Puck.news.
This arbitration ruling not only delivers a substantial financial blow to the NFLPA but also surfaces queries regarding the association’s decision-making protocols and its commitments to its members, enthusiasts, and the wider trading card community.