Lloyd Howell’s debut as the executive director of the NFL Players Association (NFLPA) turned into a financial fiasco with a $7 million bill following an arbitration ruling concerning their terminated exclusive trading card contract with Panini last year according to Eriq Gardner of Puck.news.
The fracas unraveled when the NFLPA cut ties with Panini after some crucial Panini staff defected to rival Fanatics. The NFLPA cited a “change in control” clause as the reasoning for canceling the contract. However, Panini argued that this move was a mere facade to align with Fanatics, a claim upheld by arbitrators.
David Boies, attorney for Panini, expressed, “The unanimous decision of the arbitrators confirms what we have said from the beginning: The NFLPA’s termination of its contract with Panini violated its legal obligation to Panini, its moral obligation to fans and collectors, and its fiduciary duties to its members.” Boies highlighted the financial consequences of the NFLPA’s actions, underscoring the damages caused to the members and fans due to lost royalties.
While Fanatics was not directly implicated in the arbitration, Panini initiated a separate lawsuit against them for antitrust and tortious interference. The NFLPA is yet to provide a response to inquiries regarding the issue.
The fallout from this arbitration result not only puts a dent in the NFLPA’s finances but also calls into question the decision-making process and commitments of the association towards its members, followers, and the wider trading card community.
