Lloyd Howell had a rocky start as the new executive director of the NFL Players Association (NFLPA) with a major financial blow. In a recent development reported by Eriq Gardner of Puck.news, the NFLPA has been directed to shell out a staggering $7 million to Panini following an arbitration verdict concerning the termination of their exclusive trading card deal last year.
The dispute unraveled when the NFLPA decided to cut ties with Panini after a significant number of crucial Panini staff members defected to their competitor, Fanatics. The NFLPA cited a “change in control” clause to justify the contract termination. However, Panini argued that this was merely a smokescreen for a strategic shift towards Fanatics, a claim validated by the arbitrators’ ruling.
According to Panini’s attorney, David Boies, “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.” He further added, “The PA’s actions cost its members millions of dollars in damages and lost royalties. The damages would have been many times greater except for Panini’s commitment to protecting fans and collectors, and the players themselves, by continuing to supply cards despite the PA’s purported termination.”
While Fanatics was not directly involved in the arbitration process, Panini has initiated a separate lawsuit against them, alleging antitrust violations and tortious interference. As of now, the NFLPA has refrained from offering any comments on the matter.
This arbitration outcome not only has financial implications for the NFLPA but also casts a shadow of doubt on its decision-making protocols and allegiance to its members, fans, and the wider trading card community.
