The NFLPA is suing DraftKings over a breach of contract related to NFT’s

In 1956, the National Football League (NFL) created the National Football League Player’s Association (NFLPA), a union that represents and protects the rights of all league players. Their mission is to maximize player rights, health, and well-being on and off the field. Detroit’s Jaylen Reeves-Maybin is the President and Washington’s Austin Ekeler is the Vice President of the NFLPA. Recently, the player’s union filed suit against DraftKings, one of the top sportsbooks in the US. The NFLPA could seek financial damages relating to the closure of DraftKings’ non-fungible tokens (NFT) marketplace. DraftKings’ NFT marketplace along with the Reignmakers fantasy sports game were closed at the end of July. On Tuesday, August 20, a civil suit was filed in the Southern District Court of New York.

According to the NFLPA, they are seeking monetary compensation for an “anticipated breach of contract.” There are minimal details available about this case because important documents are still sealed by the court. However, a cover sheet is visible and it notes David Greenspan is representing the NFLPA. He is an antitrust, sports, and complex commercial litigator. The partnership between the NFLPA and DraftKings started in December of 2021. DraftKings announced an agreement with OneTeam Partners, the group licensing partner of the NFLPA.

How much money will DraftKings have to pay the NFLPA?

With the court documents still sealed, it’s difficult to gauge how much DraftKings will owe the NFLPA. However, there is speculation that the number could be north of $30 million. On the accounts receivable section of NFLPA’s 2023 annual report, OneTeam Partners had $32.39 million for the amount attributable. OneTeam Partners is a separate entity and is not directly tied to the NFL or the NFLPA. Their relationship with the NFLPA is strong as they negotiate favorable financial terms for players to be represented in the Madden video game and on trading cards.

While the NFLPA and OneTeam are working together, the litigation between the NFLPA and DraftKings still needs to be resolved. Their union wants to focus on protecting players’ image and likeness and deriving compensation for the usage. DraftKings is the official sportsbook of the NFL, but they do not have a relationship with the NFLPA.