Lloyd Howell’s tenure as the executive director of the NFL Players Association (NFLPA) took a rough start with a significant financial blow. The recent arbitration ruling commanded the NFLPA to shell out a staggering $7 million to Panini due to a dispute arising from their terminated exclusive trading card contract from last year.
The discord sparked when the NFLPA decided to sever ties with Panini post the departure of key Panini staff to rival company Fanatics. The NFLPA cited a “change in control” clause as the rationale for ending the contract. However, Panini contested that this move was just a cover-up for transitioning loyalties to Fanatics, a claim that found favor with the arbitrators.
Panini’s attorney, David Boies, shared his satisfaction with the decision, stating, “The unanimous decision of the arbitrators confirms what we have said from the beginning.” Boies emphasized that the NFLPA’s actions not only breached legal obligations to Panini but also flouted moral duties towards fans, collectors, and the players themselves. The fallout resulted in millions of dollars in damages and lost royalties for the players, a blow that Panini mitigated by continuing to supply cards despite the contract termination.
While Fanatics did not partake in the arbitration, Panini took a separate legal route by filing an antitrust and tortious interference lawsuit against them. The NFLPA has, as of now, maintained silence on inquiries from Puck.news regarding the matter.
The financial setback suffered by the NFLPA in this arbitration ruling not only impacts their monetary reserves but also casts a shadow on their decision-making procedures and commitments. The episode poses questions about the NFLPA’s allegiance to its members, the trust of its fan base, and its standing within the broader trading card landscape.
