In a significant setback for Lloyd Howell, the new executive director of the NFL Players Association (NFLPA), the union has been ordered to pay $7 million to Panini. The arbitration ruling stems from last year's abrupt termination of their exclusive trading card contract.
The dispute arose when the NFLPA decided to end its agreement with Panini after several key Panini employees were recruited by Fanatics. The NFLPA justified the termination by citing a "change in control" clause in the contract. However, Panini argued that the clause was used as a pretext for the NFLPA to switch to Fanatics. The arbitrators sided with Panini.
“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,” said Panini’s attorney David Boies. “The PA’s actions cost its members millions of dollars in damages and lost royalties. The damages would have been many times greater except for Panini’s commitment to protecting fans and collectors, and the players themselves, by continuing to supply cards despite the PA’s purported termination.”
Although Fanatics was not involved in this arbitration, Panini has filed a separate antitrust and tortious interference lawsuit against them. The NFLPA has not yet responded to requests for comment from Puck.news.
This ruling not only imposes a financial burden on the NFLPA but also raises concerns about the union's contractual commitments and the potential impact on its members and the trading card community.