Lloyd Howell’s inaugural business move as the executive director of the NFL Players Association (NFLPA) has hit a major snag. Eriq Gardner from Puck.news reports that the NFLPA has been instructed to pay a hefty $7 million to Panini in the aftermath of an arbitration ruling concerning the termination of their exclusive trading card agreement last year.
The clash ensued when the NFLPA decided to end its contract with Panini after key Panini personnel migrated to rival company Fanatics. The NFLPA cited a “change in control” clause to justify the contract termination. Nevertheless, Panini argued that this was simply a facade for aligning with Fanatics, a sentiment that resonated with the arbitrators.
Panini’s attorney, David Boies, conveyed, “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 emphasized the detrimental financial impact on the players due to lost royalties and damages.
While Fanatics was not directly involved in the arbitration process, Panini has taken legal action against them with an antitrust and tortious interference lawsuit. The NFLPA has not issued a response to inquiries from Puck.news at this time.
This arbitration verdict not only delivers a financial blow to the NFLPA but also casts doubts on its decision-making procedures and allegiance to its members, supporters, and the wider trading card community.
