Sports Law Roundup – 7/14/2017

aslr

I used to write the sports technology roundup at TechGraphs, an internet website that died, and now I am writing the sports law roundup at ALDLAND, an internet website.

Here are the top sports-related legal stories from the past week:

  • Hou-Hugh Feud: Houston Nutt, which is a real human man’s name, is the former head football coach at Ole Miss. He has sued that school and its athletic department because, he alleges, school representatives’ public statements linking an ongoing NCAA investigation of the university’s football program to Nutt violated a term of the 2011 severance agreement between Nutt and Ole Miss precluding the university from, in the complaint’s words, “making any statement whatsoever relative to Coach Nutt’s tenure as an employee of Ole Miss that might damage or harm his reputation as a football coach. Ole Miss was contractually prohibited from making any statement whatsoever, truthful or not, that may damage or harm Coach Nutt’s reputation.” The complaint highlights, in substantial detail, statements to reporters by Ole Miss Athletic Director Ross Bjork, Sports Information Director Kyle Campbell, and current head football coach Hugh Freeze, whose scheduled appearance at SEC Media Days was twenty-four hours after Nutt filed his lawsuit. Freeze did not directly address the allegations that day, saying only that he was not happy with the “ironic” timing of the filing of the suit and that he hadn’t seen Nutt in years. Freeze also read a prepared no-comment statement during his turn at the podium, thereafter referring to the NCAA investigation– and, indirectly, the lawsuit– as “the lot that we’ve inherited or caused in some cases,” a statement Nutt likely will cite as Freeze’s unrepentant casting of blame on Nutt.
  • Cheerleader wages: In May, the Milwaukee Bucks and Lauren Herington, a former cheerleader for the team who alleged that the team violated federal and state labor laws by underpaying her and her fellow cheerleaders, reached a $250,000 settlement of Herington’s proposed class action lawsuit that provided for the settlement funds to be divided as follows: $10,000 for Herington; $115,000 for Herington’s attorneys; and unspecified shares of the remaining $125,000 to Herington and other would-be class members who opt into the settlement based on their hours worked during the three-year period (2012-15) at issue. Now, the judge overseeing the case conditionally certified it as a collective action for settlement purposes but refused to approve the settlement agreement itself, explaining that he currently lacks sufficient information to determine “whether the settlement ‘is a fair and reasonable resolution’ of” the dispute. Prior reports indicated that the $250,000 settlement amount was significantly less than what some other teams paid to resolve similar lawsuits.
  • Daily Fantasy Sports: Last month, the inevitable merger between DraftKings and FanDuel announced last November hit a probably inevitable regulatory hurdle when the Federal Trade Commission filed a lawsuit in an attempt to block the merger, and a judge granted the FTC a temporary restraining order that halted the merger. In an email to users sent yesterday, DraftKings announced that it has “formally terminated our merger with FanDuel and will withdraw litigation from [sic?]” the FTC.
  • Baseball DUI: This spring, a South Korean court sentenced Pittsburgh Pirates infielder Jung Ho Kang to eight months in prison after the player admitted guilt on a DUI charge. The prison sentence was Kang’s first, but it arose out of his third DUI arrest in his native country. As a result, Kang had trouble securing a visa to reenter the U.S., which caused him to miss all of spring training, and, now, the entire first half of the current MLB season. This week, Pirates GM Neal Huntington said that one could “pretty much eliminate the thought” that Kang would play for Pittsburgh in 2017, and that the team has turned its “optimistic” eyes toward a 2018 return.
  • Umpire discrimination: Last week, Angel Hernandez, a longtime MLB umpire who is of Cuban descent, sued the league on claims arising out of general allegations of racial discrimination against minority umpires in promotions to crew chief status and in World Series assignments, among other claims. This week, FanGraphs identified Hernandez as the umpire responsible for the worst called strike of the first half of the 2017 season.

Sports court is in recess.

Sports Law Roundup – 7/7/2017

aslr

I used to write the sports technology roundup at TechGraphs, an internet website that died, and now I am writing the sports law roundup at ALDLAND, an internet website.

After a break for the holiday weekend, here are the top sports-related legal stories:

  • NASCAR tune up: NASCAR driver Mike Wallace and members of his family have sued concert promoter and hospitality entities after the Wallace family says employees of Live Nation’s lawn care contractor brutally attacked them in the VIP parking lot outside a Rascal Flatts concert in Charlotte.
  • Minor League baseball wages: The U.S. Court of Appeals for the Ninth Circuit has rejected claims by players in one of the minor league baseball player lawsuits proceeding as a direct challenge to MLB’s longstanding antitrust exemption. The court explained that it was bound by Supreme Court precedent to uphold the exemption, and that the players’ allegations– centering around an assertion that MLB and its teams colluded to suppress minor league player wages– involve “precisely the type of activity that falls within the antitrust exemption for the business of baseball.” This arguably was not the worst result for minor league baseball players in recent days, however.
  • Umpire discrimination: Angel Hernandez, a longtime MLB umpire who is of Cuban descent, has sued the league on claims arising out of general allegations of racial discrimination against minority umpires in promotions to crew chief status and in World Series assignments, as well as specific allegations of Hernandez’s personal targeting by Joe Torre, who began working as MLB’s umpire supervisor in 2011. On the latter issue, Hernandez claims to trace a negative change in his reviews beginning in 2011 to friction between him and Torre that originated a decade prior, when Torre was the manager of the New York Yankees.
  • Athlete financial adviser: In April, a former financial adviser to former San Antonio Spurs star Tim Duncan pled guilty to wire fraud in connection with allegations that the adviser tricked Duncan into guaranteeing a $6 million loan to a sportswear company the adviser controlled. Last week, a judge sentenced the adviser to four years in prison and ordered him to pay restitution in the amount of $7.5 million, the total amount of Duncan’s investment in the adviser’s company.
  • Penn State football coach: Not content to stay out of the legal news, Penn State has sued Bob Shoop, a former Nittany Lion football defensive coordinator now filling the same role for the University of Tennessee, alleging that he breached his employment contract with PSU when he left for the UT gig during the term of the contract. That contract included a provision that, if Shoop left early to take anything other than a head coaching position, he would owe Penn State fifty percent of his base salary. In the lawsuit, PSU is seeking $891,856 in damages. The move to Knoxville is a return to Tennessee and the SEC for Shoop, who was James Franklin’s defensive coordinator  at Vanderbilt from 2011 until he joined Franklin’s dead-of-night departure from Nashville to State College in 2014.
  • Gambling: The Supreme Court has agreed to hear an appeal in a case involving the State of New Jersey’s challenge to a 1992 federal ban on expansions to sports betting outside of the states– Nevada, Montana, Oregon, and Delaware– where it was legal at the time.
  • Fox Sports 1 executive: Fox Sports has terminated Jamie Horowitz, a top television executive responsible for the “embrace debate” brand of sports programming first at ESPN and now at FS1, because he is the subject of a sexual harassment investigation at the latter network. Horowitz had been the president of Fox Sports’ national networks since May 2015 and was responsible for bringing Skip Bayless, Jason Whitlock, and Colin Cowherd to the FS1 airwaves. Most recently, Horowitz was responsible for substantial layoffs in Fox Sports’ digital group and an elimination of all written content at FoxSports.com.
  • NBA arena security: A former manager of security operations at Philips Arena, the home of the Atlanta Hawks, has sued ATL Hawks LLC, the company that owns the Hawks and the arena, alleging that he lost his job because he complained after white concert performers Axl Rose and Brian Wilson were allowed to bypass metal detectors a week after similar requests from black performers Drake and Future were denied.

Sports court is in recess.