K&C Sports & Entertainment Law Weekly Roundup (April 14, 2023)
April 14, 2023, 09:00 AM- Washington Commanders owner Daniel Snyder has accepted a non-exclusive bid to purchase the NFL franchise for $6.05 billion—a world-record fee for a sports franchise—from a group of investors led by Josh Harris (Philadelphia 76ers, New Jersey Devils, Crystal Palace F.C.), NBA Hall of Famer Magic Johnson, and a number of other investors – AP sources: Snyder agrees to $6.05B sale of NFL’s Commanders | AP News
- There were further developments regarding trans athletes competing in sports when a group of 40 elite athletes, including USWNT soccer player Megan Rapinoe and WNBA legend Sue Bird, signed a letter sent to the House of Representatives opposing a Republican-led bill banning trans girls from competing on girls’ teams nationwide – Pro, Olympic and Paralympic Athletes Sign Open Letter Against HR734 – Athlete Ally
- Former Miami Dolphins head coach Brian Flores and his co-lead plaintiffs told a New York federal judge overseeing their racial discrimination class action lawsuit against the NFL that the league should not be allowed to enforce “unconscionable contracts” to keep parts of the dispute in arbitration — with NFL Commissioner Roger Goodell as the arbitrator — and out of federal court – Flores Fires Back Over ‘Unconscionable’ Contract In Bias Spat – Law360
- The Texas judge overseeing the bankruptcy proceedings for Diamond Sports Group, the owner of several regional sports networks, set a May 31 hearing date to rule on the motion to compel performance or rejection under the contracts brought by Major League Baseball (MLB). Diamond filed for bankruptcy in March and part of the restructuring plan proposes to reduce fees Diamond is to pay to MLB teams for the right to broadcast games in local markets, but Diamond has suspended making payments while still broadcasting games pending resolution of the bankruptcy proceedings – Diamond Sports, MLB Warm Up For Ch. 11 Contract Fight – Law360
- Oscar winner and comedian Mo’Nique sued Paramount, CBS and Big Ticket Productions seeking unpaid royalties from the sitcom “The Parkers,” arguing that Paramount and CBS artificially depressed the show’s profitability to retain millions in royalties that would have been due to Mo’Nique’s production company – Mo’Nique sues CBS, Paramount over ‘Parkers’ royalties | AP News
- Jack Nicklaus scored a minor victory in the $145 million licensing lawsuit brought by Nicklaus Companies LLC (his former golf course design company he sold in 2007) against the legendary golfer. The Manhattan judge overseeing proceedings trimmed a number of the claims against Nicklaus stating that several of the claims attempted to shoehorn employment claims into unrelated transaction documents. Nicklaus Companies believes Jack Nicklaus violated the terms of the transaction by recently restarting golf course design work, tournament sponsorships and personal endorsement deals after, what the Golden Bear believes, the expiration of his noncompete restrictive covenant – Jack Nicklaus Narrows Claims Over $145M IP Sale – Law360
- Rapper and record producer Lil’ Yachty settled his lawsuit against U.K. non-fungible token (NFT) seller Opulous over the company’s alleged use of the rapper’s name without authorization to raise more than $6.5 million in venture capital funds for a line of NFTs – Lil Yachty Settles Infringement Lawsuit Against NFT Seller Opulous – Rolling Stone
- Sony Music and Ultra Records filed suit in Colorado against independent dance (or “house music”) label Moody Recordings alleging Moody violated a licensing agreement by creating an unauthorized version of a copyrighted track from 2014 – Sony Music and Ultra Records sue dance label over ‘unauthorized’ version of 2014 hit Dancin, which has over 200m streams on Spotify – Music Business Worldwide
- The SAG-AFTRA Health Plan agreed to pay $15 million to end a proposed class action brought by actor Ed Asner and nine other union members who lost coverage in 2020 claiming the health plan used the COVID-19 pandemic as cover to push performers over 65 to Medicare in a pre-planned cost-cutting scheme – SAG-AFTRA Health Plan to Pay $15 Million to Resolve Ed Asner’s Lawsuit – Variety
- In another example of athlete/performer-turned-mogul, Grammy Award-winning artist Bad Bunny has teamed up with the entertainment company that represents him to form Rimas Sports, a full-service sports management company that will focus on Latin American athletes and has already signed a number of up-and-coming Latino baseball stars – Bad Bunny Forms Sports Agency (frontofficesports.com)
- The NCAA filed a motion in Indiana federal court urging denial of class certification to more than 1,600 athletes who accuse the NCAA of racially discriminating against students at historically Black colleges and universities (HBCUs). The NCAA argues the proposed plaintiffs, who filed the suit in December of 2020, are too diverse for class certification because they are from different schools, conferences and teams with their own set of unique circumstances – NCAA Argues Proposed Class Too Diverse In Race Bias Suit – Law360
- Mötley Crüe guitarist Mick Mars filed suit against the band in Los Angeles Superior Court claiming his bandmates are attempting to push him out of the band due to a disability that prevents him from touring, laying bare decades of bitter disputes within the successful rock band – Motley Crue Responds to Mick Mars Lawsuit, Citing Poor Performance – Variety
- ROKiT World Inc., an Ireland-based marketing company, filed a $149 million lawsuit in Florida state court against Formula One race team Williams Grand Pix Engineering Ltd., alleging that the F1 team made fraudulent statements over a car that wasn’t as competitive as promised, in addition to breaking a sponsorship agreement requiring ROKiT’s logo to be prominently displayed – Former sponsor ROKiT launches $149m claim against Williams F1 team (motorsport.com)