Lloyd Howell’s first big move as the NFL Players Association’s executive director took a sharp turn recently. After an arbitration ruling over the termination of their exclusive trading card contract last year, the NFLPA has been left with a hefty $7 million bill to pay to Panini.
The saga began when the NFLPA decided to end its partnership with Panini due to the departure of key Panini employees to rival company Fanatics. Citing a “change in control” clause as their rationale, the NFLPA argued that this justified ending the contract. However, Panini countered by claiming this was merely a cover-up for switching sides to Fanatics, a stance that the arbitrators ultimately supported.
In a statement to Puck.news, Panini’s attorney, David Boies, expressed satisfaction with the ruling. He highlighted the arbitrators’ unanimous decision, emphasizing that the NFLPA’s termination of the contract with Panini not only breached a legal obligation but also a moral duty to fans, collectors, and its members. Boies added that the NFLPA’s actions had led to significant financial losses and damages for its members, pointing out that Panini’s decision to continue supplying cards despite the contract termination helped mitigate the potential damages.
While Fanatics was not directly involved in the arbitration, Panini has taken legal action by filing a separate antitrust and tortious interference lawsuit against them. As of now, the NFLPA has remained silent on the matter, declining to comment on the developments.
The fallout from this arbitration ruling goes beyond the financial implications for the NFLPA. It raises important questions about the organization’s decision-making processes, its loyalty to members, fans, and the wider trading card community. The industry landscape is shifting, and this case serves as a stark reminder of the complex dynamics at play in the world of sports memorabilia and licensing agreements.
