K&C Sports & Entertainment Law Weekly Roundup (August 4, 2023)

Sports:

• Player Unions:
  • Sports collectibles company Panini America filed a federal antitrust suit against Fanatics, alleging that its new rival has attempted to monopolize the market for trading cards with its dramatic foray into the sector two years ago after striking long-term, exclusive deals with the NFLPA, NBPA, MLBPA as well as the NBA and MLB themselves – Trading Card Wars Escalate With Panini’s Antitrust Lawsuit Against Fanatics – WSJ
  • NBPA issued a statement that a $50,000 donation made by the NBA’s Orlando Magic to a super PAC supporting Florida Gov. Ron DeSantis’ presidential campaign was “alarming given recent comments and policies of its beneficiary.” – NBPA says $50K gift ‘alarming’ after Ron DeSantis’ comments – ESPN
• MLS:
  • In case you had not realized, Lionel Messi is now plying his trade in the United States for MLS side Inter Miami CF, but his impact (as expected) is going way beyond scoring and setting up goals on the pitch with Inter Miami and the MLS seeing the impact of the big business that is “Messi Mania” – The Messi Effect: New Miami star brings big business to MLS – ESPN
  • The MLS’ New England Revolution placed coach and sporting director Bruce Arena on administrative leave pending an investigation from MLS into allegations the former USMNT, D.C. United, and L.A. Galaxy coach made “insensitive and inappropriate remarks” – New England coach Arena on leave pending MLS investigation – ESPN
• Golf:
  • In response to significant player unrest over secret negotiations to unite the PGA Tour with LIV Golf, owned by the Saudi Arabian Public Investment Fund, in a new joint commercial business, the PGA Tour announced that a sixth player seat will be added to the player directors on the PGA Tour policy board, and will be filled by Tiger Woods – Tiger Woods joins PGA Tour policy board as sixth player director – The Athletic
• NCAA:
  • The Big Ten Conference is exploring potential expansion to the West Coast targeting certain Pac-12 schools which underscores the fragility of the overall collegiate landscape and casts a pall over the future of the Pac-12 – Big Ten explores possible expansion amid Pac-12 instability – ESPN
  • Presidents and chancellors of the Big Ten Conference’s universities met late this week and authorized commissioner Tony Petitti to explore adding the University of Oregon and the University of Washington in expansion as potential conference members – Sources — Big Ten commissioner to explore adding Oregon, Washington – ESPN
  • Florida State University’s President told his board of trustees during a meeting this week that the university would have to “very seriously” consider leaving the Atlantic Coast Conference (ACC) unless there is a radical change to the conference’s revenue distribution model – Florida State would consider leaving ACC due to revenue distribution – ESPN
  • The NCAA announced it will soon offer college athletes injury insurance coverage that will last for two years after athletes complete their college athletics experience and will cover injuries that occur while playing for their school with this post-eligibility insurance program set to begin on Aug. 1, 2024, and be available to athletes across all three divisions – NCAA to offer 2 years of post-eligibility injury insurance coverage to all athletes – The Athletic
  • NCAA Division I Board has directed its council to explore ways the organization can help student-athletes better navigate name, image and likeness (NIL) contracts, as the movement to allow college players the opportunity to profit from sponsorships and other deals continues to grow – NCAA Works To Clarify Likeness Rules For Student-Athletes – Law360
  • Video game maker Electronic Arts (EA) asked a California federal judge to toss a lawsuit by The BrandR Group that alleges EA is exploiting student-athletes for an upcoming video game, saying the claims are too broad and the suit fails to sufficiently assert EA has actually done anything wrong – EA Blasts Suit Over Athlete NIL Use In Video Game As Faulty – Law360
  • As more lawsuits from former athletes continue to be filed, Northwestern University announced that it has retained former U.S. Attorney General Loretta Lynch to lead an independent review after an investigation uncovered evidence of hazing in the university’s football program – Northwestern Taps Ex-AG Loretta Lynch To Investigate Hazing – Law360
  • A California federal judge has refused to toss or transfer proposed antitrust class actions by college volunteer coaches over the NCAA’s now-defunct rules prohibiting Division I volunteer coaches from being paid, finding the claims are sufficiently pled and the NCAA hasn’t shown litigating in California is inconvenient – NCAA Can’t Ax, Transfer Volunteer Coaches’ Antitrust Suits – Law360
• Sports Ownership:
  • Michael Jordan’s sale of a majority stake in the Charlotte Hornets to a group led by Rick Schnall and Gabe Plotkin has been finalized; Jordan will continue to hold a minority stake in the team, but the purchase was made at an approximate $3 billion valuation after Jordan paid $275 million for a majority stake in the franchise in 2010 – Hornets sale from Michael Jordan to Gabe Plotkin, Rick Schnall finalized – ESPN
  • Seven-time NFL Super Bowl champion, Tom Brady, has become a minority owner of Birmingham City, a club in English soccer’s second-tier Championship, after entering into a partnership with Birmingham’s owners, Knighthead Capital Management LLC, and he will become chairman of the advisory board at the club – Tom Brady becomes minority owner at Birmingham City – ESPN
• Baseball:
  • A former clubhouse manager for MLB’s Los Angeles Angels settled a defamation suit against the team and MLB that he launched after his firing three years ago over accusations he provided major league pitchers with illegal substances to put on baseballs – Ex-Angels Worker Settles MLB Spat Over Sticky Substance – Law360

Entertainment:

• Three women who used to be dancers for Lizzo slapped the Grammy-winning pop star and her touring company with a sexual and racial harassment suit in California state court, claiming they were frequently exposed to graphic sexual behavior and endured demeaning comments from white managers – Lizzo Hit With Sexual, Racial Harassment Suit By Ex-Dancers – Law360