Lloyd Howell’s introduction as the executive director of the NFL Players Association has taken a rocky turn, resulting in a hefty financial blow. The NFLPA has been instructed to pay $7 million to trading card giant Panini after an arbitration verdict surrounding the termination of their exclusive contract last year.
The clash ignited when the NFLPA opted to end its partnership with Panini, citing a “change in control” clause triggered by key Panini employees defecting to rival company Fanatics. However, Panini argued that this move was a mere guise for shifting loyalties to their competitor, a claim substantiated by the arbitrators’ ruling.
Panini’s attorney, David Boies, emphasized the significance of the arbitrators’ unanimous decision, stressing that the NFLPA’s actions not only breached legal and moral obligations towards Panini but also had adverse financial repercussions for players in terms of damages and lost royalties. Boies acknowledged Panini’s dedication to upholding its obligations to fans, collectors, and players amidst the contractual turmoil.
While Fanatics was not actively involved in the arbitration proceedings, Panini has taken legal action separately, filing an antitrust and tortious interference lawsuit against them. As of now, the NFLPA has not provided any comments in response to inquiries from Puck.news.
This arbitration ruling not only hits the NFLPA’s finances but also casts shadows on its decision-making processes and its commitments to its members, fans, and the broader trading card community. The credibility of the NFLPA faces scrutiny, raising concerns about its allegiance and responsibility in safeguarding the interests of all stakeholders involved.
