Sports Law Roundup – 7/14/2017

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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.

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Sports Law Roundup – 5/5/2017

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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:

  • NBA profiling: In 2015, Mike Scott, then a member of the Atlanta Hawks, and his brother were pulled over and subsequently arrested after a search of their rented vehicle turned up marijuana, ecstasy, and $1,684 in cash.  The deputy sheriff who made the stop later was found to have been racially profiling drivers as part of a forfeiture scheme and placed on administrative leave. Records provided by the Scotts’ attorneys show that the deputy sheriff “pulled over more than 1,400 vehicles in 2015 and 2016 but issued only eight traffic citations. He also arrested 47 people, at least 44 of whom were minorities.” As a result of the profiling, the judge overseeing the Scotts’ drug case this week threw out the key evidence against the defendants.
  • Baseball broadcast settlement: In early 2016, MLB settled a fan antitrust lawsuit targeting the league’s television blackouts and other components of its broadcast system. While the blackouts survived, the fans did win reduced-price single-team subscription options for MLB.tv (I am a subscriber, to varying degrees of satisfaction), as well as a price reduction for the full MLB.tv package. The agreement also included a component that would allow MLB to raise prices in the future in exchange for providing more live streams of in-market games by 2017. That component now is at issue in a new motion filed by the fan group demanding that the court enforce the terms of the settlement agreement. The fans allege that MLB raised prices without the required corresponding in-market streaming increase. They concede that the league may have agreements in place with local television providers to provide the in-market streams, but, the fans argue, “the obvious purpose of the settlement was not that ‘agreements’ of some kind be reached, but that the actual games be available.” The fans also argue that, contrary to what they were promised, MLB has failed to make the “follow your team” game broadcasts available when the selected team is playing the team based in the fan’s local broadcast market.
  • Cheerleader wages: 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, have reached a $250,000 settlement of Herington’s proposed class action lawsuit that provides 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. While not insubstantial, the Journal Sentinel notes that Milwaukee’s $250,000 settlement amount is less than what other teams– for example, the Oakland Raiders ($1.24 million), Tampa Bay Buccaneers ($825,000), and Cincinnati Bengals ($255,000)– have paid to resolve similar lawsuits. Upon learning that Herington was wavering on whether to agree to the settlement, her lawyer, who wanted her to accept the deal, reportedly was overheard telling her that “it’s a Bucks dancer’s choice my friend, better take my advice.”
  • Minor League baseball wages: As predicted two months ago, the court overseeing  the minor-league baseball players lawsuit against MLB for higher wages and overtime pay will permit the parties to appeal its recent ruling certifying the case for class-action treatment. In doing so, the court also decided to stay the case pending resolution of the class-certification issues by the appellate court.

Sports court is in recess.