Lloyd Howell’s tenure as the NFL Players Association’s executive director began on a rocky note with a $7 million financial setback. Eriq Gardner, a reporter for Puck news, disclosed the distressing outcome of an arbitration ruling that required the NFLPA to compensate Panini after a contract termination dispute.
The saga unraveled when the NFLPA decided to end its exclusive trading card contract with Panini following the migration of key Panini employees to the company’s rival, Fanatics. Utilizing a “change in control” clause as justification for prematurely severing ties, the NFLPA argued its case. However, Panini countered, asserting that the termination was a mere guise to shift alliances to Fanatics, a claim upheld by the arbitrators.
Panini’s legal representative, David Boies, was unequivocal in his assertion following the ruling. He stated, “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 emphasized the substantial financial repercussions incurred by the NFLPA’s actions, citing damages and lost royalties borne by its members. He commended Panini for upholding its commitment to fans, collectors, and players by continuing to produce cards despite the contractual turmoil.
While Fanatics did not engage directly in the arbitration, Panini proactively initiated a separate legal battle, filing an antitrust and tortious interference lawsuit against the rival entity. Despite Puck.news’ attempts to solicit a response from the NFLPA on this matter, the association has remained silent.
The aftermath of this arbitration ruling extends beyond the financial realm, stirring doubts about the NFLPA’s decision-making processes and its allegiance to its members, supporters, and the wider trading card community. Such a significant loss not only impacts the association’s bottom line but also casts a shadow of uncertainty on its future dealings and partnerships.