Lloyd Howell, the newly appointed executive director of the NFL Players Association (NFLPA), has found himself at the center of a costly controversy in his early days on the job. An arbitration ruling has decreed that the NFLPA must compensate Panini with a staggering $7 million due to the termination of their exclusive trading card contract last year, as reported by Eriq Gardner from Puck.news.
The dispute between the NFLPA and Panini unfolded when the former decided to end their partnership with Panini in the wake of several key Panini employees defecting to rival company Fanatics. The NFLPA cited a “change in control” clause as the grounds for the contract termination. However, Panini argued that this was merely a facade to enable a switch in alliances to Fanatics, a claim that the arbitrators ultimately sided with.
David Boies, the attorney representing Panini, expressed satisfaction with the arbitrators’ unanimous decision, stating, “The PA’s actions cost its members millions of dollars in damages and lost royalties.” Boies highlighted that the damages could have been considerably higher if not for Panini’s commitment to ensuring the continuity of trading cards for fans and collectors, as well as protecting the players themselves.
While Fanatics was not directly involved in the arbitration, Panini has taken legal action by filing a separate lawsuit against them on grounds of antitrust and tortious interference. The NFLPA has remained silent on inquiries regarding this development as per Puck.news.
Beyond the financial implications, this arbitration ruling casts a shadow of doubt on the NFLPA’s judgment and its allegiance to its members, fans, and the broader trading card community. The fallout from this dispute amplifies the importance of honoring contractual obligations and serving the interests of all stakeholders involved in such high-stakes deals.
