Lloyd Howell's inaugural business move as the executive director of the NFL Players Association (NFLPA) has turned into a multi-million dollar setback. As reported by Eriq Gardner on Puck.news, the NFLPA has been instructed to cough up $7 million to Panini following an arbitration verdict concerning the abrupt end to their exclusive trading card partnership last year.
The clash ensued when the NFLPA decided to terminate its pact with Panini following the defection of key Panini personnel to competitor Fanatics. Citing a "change in control" clause, the NFLPA sought to justify their contract breach. However, Panini countered that this was a flimsy pretext used to switch loyalties to Fanatics, a claim that found favor with the arbitrators.
In a statement to Gardner, Panini's attorney David Boies expressed vindication, stating, “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 added, “The PA’s actions cost its members millions of dollars in damages and lost royalties."
Despite the arbitration ruling, the legal battle is not over. Panini has lodged a separate antitrust and tortious interference lawsuit against Fanatics, though the latter was not directly implicated in the arbitration process. The NFLPA has remained silent, declining to provide a comment to Puck.news on the issue.
This outcome not only has significant financial implications for the NFLPA but also casts a shadow over its decision-making rationale and its pledges to its members, supporters, and the wider trading card community.
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