K&C Sports & Entertainment Law Weekly Roundup (June 2, 2023)

Sports:

• The NFL Players Association (“NFLPA”) reported this week that it has been unable to collect $41.8 million of licensing and sponsorship revenue in connection with the collapse of the crypto marketplace. The revenue was due to the NFLPA’s affiliate, OneTeam Partners, LLC, a company set up in conjunction with players’ unions for other professional sports leagues to monetize image rights through licensing – NFLPA owed $41.8M in licensing and marketing payments from affiliate following crypto collapse – The Athletic
• Diamond Sports Group Bankruptcy:
  • The bankruptcy of Diamond Sports Group (“DSG”), the region sports network operating the 19 Bally Sports brands, took another turn this week when DSG did not make the latest required rights fee payment to the San Diego Padres of Major League Baseball (“MLB”) during the grace period provided in the broadcasting agreement resulting in the broadcasting rights reverting back to Padres and MLB—which will now stream Padres games through the MLB.TV app – Diamond Sports Group fails to pay Padres, loses broadcast rights – ESPN
  • Following DSG surrendering broadcast rights for Padres games, MLB Commissioner, Rob Manfred, testified this week that he wants MLB to retain the right to stream local coverage of the league’s games and has been focused on keeping that ability over concerns about the financial viability of Diamond Sports Group – MLB Commish Says Streaming Is Critical In Bally Ch. 11 – Law360
  • Late Thursday, after two days of marathon hearings, the bankruptcy judge in Houston, TX issued a ruling in favor of MLB and four of its franchises, Minnesota Twins, Cleveland Guardians, Arizona Diamondbacks and Texas Rangers, that DSG must make full payments provided for under the broadcast contracts to the franchises, or reject the contracts outright and revert the broadcast rights back to the MLB and franchises (in the same manner as happened with the San Diego Padres) – Diamond Sports Group ordered to fully pay Twins, Guardians, Diamondbacks, Rangers – ESPN
• Federal prosecutors in Brooklyn, NY urged a judge to deny a former South American soccer executive’s bid to reduce the nine-year sentence he received after a jury convicted him as part of the international FIFA bribery scandal – Soccer Exec Can’t Cut Sentence In FIFA Case, Feds Say – Law360

Entertainment:

• Shortly after last week’s roundup was posted, a contentious $100 million legal battle that involved accusations of racism and extortion was ended when a California federal jury found that MGA Entertainment’s O.M.G. dolls do not infringe the trade dress or misappropriate the name, likeness or identity of the OMG Girlz pop group co-owned by rapper T.I. – I. and Tiny Lose Copyright Infringement Lawsuit Against Toy Maker – Rolling Stone
• World Wrestling Entertainment Inc. (“WWE”) defended its request to dismiss a federal antitrust lawsuit in California that accuses the entertainment giant of monopolizing the sector, arguing the plaintiff Major League Wrestling Media LLC has publicly admitted it is thriving and has not provided evidence to support its allegations – WWE Wants To Tap Out Of Rival’s ‘Futile’ Antitrust Lawsuit – Law360
• Sean “Diddy” Combs alleged in a lawsuit filed this week in New York state court that Diageo North America Inc. publicly touts its commitment to diversity and inclusion, but the spirits giant doesn’t treat its Black partners equally, saying Diddy’s vodka and tequila brands have been typecast as beverages for “urban” consumers – Diddy Says Diageo Abandoned His Vodka, Tequila As ‘Urban’ – Law360
• A New York federal judge granted Robert De Niro and his production company a partial win in a sex bias lawsuit brought by a former vice president claiming the movie star saddled her with gendered tasks, such as folding his clothes and boxers, and made her work 13-hour days – VP’s Sex Discrimination Suit Against De Niro Partially Tossed – Law360