K&C Sports & Entertainment Law Weekly Roundup (September 8, 2023)

Sports:

• The name, image, likeness (NIL) contract that the NFL’s Chicago Bears rookie Gervon Dexter signed with a speculative investment capital company while playing at the University of Florida in 2022 is alleged to have violated NIL law in place at the time in Florida as it provided a lumpsum payment to Dexter in exchange for use of Dexter image rights while in college in addition to 15% of his professional NFL career earnings for the next 25 years; resembling more of a “predatory loan” than an image rights deal – Florida legislator says Bears DT Gervon Dexter’s NIL deal violated law – ESPN
• The fallout from the behavior of Spanish Futbol Association President, Luis Rubiales, continues to grow as state prosecutors in Spain have filed a lawsuit against Rubiales alleging sexual assault and coercion for kissing a player on the lips without her consent after the FIFA Women’s World Cup final – Spain prosecutors accuse Rubiales of sexual assault, coercion – ESPN
• For international/nonresident athletes and entertainers, the UK tax rules can be burdensome, and individuals affected by the application of tax to their global endorsement income need to have proper guidance so to avoid costly pitfalls; here is a good discussion of the tax implications for non-UK athletes and entertainers – International Entertainers and Sportspeople Must Plan for UK Tax (bloomberglaw.com)
• A magistrate judge in Indiana has rejected a college basketball player’s bid to insert herself into a federal racial discrimination suit, saying that her motion was untimely and that she had not sufficiently established that denying her request to intervene would stymie or interfere with her interests – Judge Blocks Player From Intervening In NCAA Race Bias Suit – Law360
• Former NFL running back Michael Cloud, seeking increased disability benefits, made his case before the Fifth Circuit, where arguments focused on whether his circumstances changed between his initial claim and a subsequent request for higher benefits which will be a difficult position to argue based on the facts previously plead – NFL Plan, Ex-Running Back Spar Over Benefits in Fifth Circuit (bloomberglaw.com)
• A New York state court judge in Manhattan refused to throw out claims that Major League Baseball, the Houston Astros, and the Detroit Tigers illegally broke apart a century-old association of minor league farm teams in a downsizing effort, setting the stage for a November trial – MLB Can’t Avoid Trial On Minor League Interference Claims – Law360
• Counsel for the City of Hartford, Connecticut argued that a construction company should be removed as a plaintiff in a multimillion-dollar lawsuit against the city, and others because it lacks standing to pursue its claims over the termination of a contract to build the Yard Goats’ minor league baseball stadium – Hartford Wants Fired Stadium Builder Kicked From Lawsuit – Law360
• Minnesota ring-maker Jostens Inc. is seeking summary judgment in its lawsuit surrounding the self-proclaimed owner of an alleged Chicago Cubs 2016 World Series ring, telling a Texas federal court that the evidence “conclusively” showed the ring was stolen property – Memorabilia Co. Eyes Early Win In World Series Ring Suit – Law360
• Utah Jazz assistant coach Jason Terry has been sued in New York state court for refusing to pay $25,000 for a diamond-encrusted Rolex watch he promised to buy from a prominent jeweler – ​​​​​​​Ex-NBA Champ, Jazz Asst. Coach Sued Over $25K Rolex – Law360
• Former champion boxer Mahmoud Charr will get his title reinstated after reaching a settlement with the World Boxing Association and its president, but will continue his court battle against co-defendant and legendary promoter Don King, whom he accused of orchestrating the loss of his championship belt – Boxer Regains Title, Contract Dispute With Don King Remains – Law360
• A federal court judge in Brooklyn vacated the convictions of a former 21st Century Fox television executive and an Argentine sports marketing company in the FIFA corruption probe, saying recent U.S. Supreme Court precedent places foreign commercial bribery outside the scope of federal fraud prosecutions – Ex-Fox Exec, Media Co. Get FIFA Bribery Convictions Tossed – Law360

Entertainment:

• Mattel, toy maker of “Barbie”, is experiencing a windfall from the popularity of the “Barbie” film not only in increased sales due to the movie’s popularity but also 5% of the movie’s box office revenue as part of the deal struck between the film’s production company, Warner Bros., and Mattel to allow the film to license and use the Barbie properties – Mattel’s Windfall From ‘Barbie’ – The New York Times (nytimes.com)
• The U.S. Copyright Office decided there’s nothing legally ambiguous in the Music Modernization Act that would keep music streamers from owing late fees when royalty estimate adjustments reveal underpayments to artists, rejecting an interpretation put forward by a group representing major streaming music services – Copyright Office Says Streamers Can’t Get Around Late Fees – Law360
• Ye, the artist formerly known as Kanye West, filed suit in California state court against the owner behind social media accounts accused of leaking confidential music without permission, alleging contract breach and trade secret misappropriation – Ye Sues Instagram User For Leaking Unreleased Music – Law360
• Festival South by Southwest is set to challenge a Chubb Ltd. insurance unit’s refusal to pay for the festival’s Covid-era cancellation, bringing an unusual appeal with broad implications for companies’ directors and officers policies – SXSW Makes Rare Appeal of Insurance Loss Over Covid Cancellation (bloomberglaw.com)
• A state court judge in California agreed to send some of Mick Mars’ suit seeking financial records from Motley Crue’s business entities into arbitration, noting the famed guitarist signed binding arbitration agreements with some, but not all, of the band’s business entities he’s suing – Mick Mars Must Partly Arbitrate Row With Motley Crue Cos. – Law360
• A state court judge in New York declined to send to arbitration Sean “Diddy” Combs’ lawsuit accusing the British spirits company Diageo of racism, ruling that the entertainer’s claims fall within a carveout that excludes them from an underlying arbitration clause in the parties’ contract – Diageo Loses Bid To Send Diddy Racism Fight To Arbitration – Law360