Sports Law Roundup – 8/4/2017

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:

  • NBA fan assault: After declining a plea offer in June, Charles Oakley, a former member of the New York Knicks who was arrested and charged with assault after an argument with Knicks owner James Dolan during a game at Madison Square Garden, accepted a similar offer today. While Oakley’s earlier decision appeared designed to force Dolan to provide public testimony at a trial, Oakley, through his lawyer, now says that he “will be pursuing all civil remedies against Mr. Dolan based on this incident.” Pursuant to the terms of today’s agreement, prosecutors will drop the criminal charges against Oakley if Oakley stays out of MSG for one year and otherwise avoids criminal trouble for six months.
  • ESPN parody: The parody sports website NOTSportsCenter.com, which appears to exist today mostly as a Twitter account, defeated a challenge by ESPN that sought the transfer of the NOTSportsCenter.com web domain to ESPN because, ESPN complained, the parody website was confusingly similar to ESPN’s registered “SportsCenter” trademark and operated in bad faith. The arbitration panel found that the owner of the NOTSportsCenter.com domain, Will Applebee, was not using the domain in bad faith, was not attempting to disrupt ESPN’s business, and does not keep people from visiting ESPN’s website. Finally, the arbitrators noted that ESPN’s “delay in taking action against [Applebee] nullifies its arguments,” finding the Worldwide Leader’s decision to wait six years to challenge the domain registration to be a material piece of evidence. Attorneys from Greenberg Traurig, an international law firm with more than two dozen offices around the world, represented ESPN. Applebee represented himself.
  • Daily fantasy sports: On Wednesday, Delaware and Maine became the latest states to legalize daily fantasy sports. The Maine law prohibits DFS contests based on collegiate athletics. Legislative action in other states suggests that Pennsylvania, Illinois, and California could be next in line, while Massachusetts appears to be moving in the other direction.

Sports court is in recess.

Sports Law Roundup – 7/21/2017

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:

  • Tennis match fixing: The Tennis Integrity Unit, an organization dedicated to investigating cheating in tennis, is investigating cheating in tennis. More specifically, the TIU is investigating four matches– three at Wimbledon and one at the French Open– for potential match fixing. Suspicious betting patterns triggered the investigation into these matches, for which additional information is not yet available to the public. While allegations of match fixing in major tournament matches are rare, tennis is particularly susceptible, given that it is an individual sport, and that most matches involve low-earning players and are not tracked by the general public. Three years ago, FiveThirtyEight’s Carl Bialik wrote an illuminating feature on the data-driven rise in tennis gambling, later cautioning that betting patterns alone were not conclusive evidence of match fixing.
  • Hou-Hugh Feud: One week after Houston Nutt sued his former employer, Ole Miss, for breach of his severance agreement for disparaging statements by school officials, including head football coach Hugh Freeze, Freeze has resigned. Athletic Director Ross Bjork, whose statements also appear in Nutt’s complaint, referred to Freeze’s unacceptable “pattern of personal misconduct” in connection with Freeze’s resignation and said that the school would have fired Freeze, who will receive no buyout on his $5 million annual contract, had Freeze not resigned. While the litany of alleged NCAA violations have been public for some time, the catalyst for Freeze’s sudden departure just a week after he represented Ole Miss at SEC Media Days appears to be new evidence that, on one occasion, Freeze used his university-issued cellphone to contact a Detroit-based escort. Freeze’s call records are under scrutiny as a result of the Nutt complaint, which cites those records in detail but contained no mention of the escort call. (And a note to those who see an opening for Lane Kiffin to return to the SEC in a head-coaching role, Paul doesn’t see it happening for Kiffin in Oxford, so you can bet it won’t.)
  • Simpson paroled: After serving nine years in prison for his role in a Las Vegas robbery, O.J. Simpson received a unanimous grant of parole from the Nevada Board of Parole Commissioners and could be out of prison as early as October. This week’s parole decision hardly could have come at a more perfect time: Norm Macdonald Live returns to the digital airwaves for a new season on Tuesday.

Sports court is in recess.

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.

Sports Law Roundup – 6/23/2017

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:

  • Football trademark: As predicted (not by me) back in 2015, the Supreme Court heard and now has ruled on a trademark case involving a band called The Slants that has a direct effect on the Washington Redskins, whose trademark registrations were revoked under the same policy applied to The Slants. That policy sought to ban registration of trademarks that were disparaging or offensive, but a unanimous (8-0) Court held that the ban violated the First Amendment. “It offends a bedrock First Amendment principle: Speech may not be banned on the ground that it expresses ideas that offend,” Justice Samuel Alito explained.
  • NFL fan access: A Green Bay Packers fan has sued the Chicago Bears because the Bears won’t allow him on the sidelines before games at Soldier Field while he’s wearing Packers attire. The fan is a Bears season-ticket holder who built up enough “points” to receive an award in the form of a pregame warmup sideline experience. Despite his entitlement to that experience under the terms of the Bears season ticket program, the Bears refused to allow him to participate while wearing Packers clothing.
  • Daily Fantasy Sports: The inevitable merger between DraftKings and FanDuel announced last November has hit a probably inevitable regulatory hurdle. The Federal Trade Commission has filed a lawsuit in an attempt to block the merger, which, the FTC says, would create a single company that controls ninety percent of the daily fantasy sports market. On Tuesday, a judge granted the FTC a temporary restraining order that halts the merger for now.
  • Golf drugs: The PGA has asked a judge to reconsider her May ruling that the tour breached an implied duty of good faith it owed to Vijay Singh in connection with a 2013 suspension the PGA issued to him after he told a reporter he’d used a product called The Ultimate Spray, which contains “velvet from the immature antlers of male deer,” something that supposedly aids golf performance. The PGA’s arguments in support of reconsideration involve evidentiary matters pertaining to witness testimony regarding the financial consequences of Singh’s suspension and the judge’s understanding of whether the PGA reviewed materials from the World Anti-Doping Agency (“WADA”), which maintains the tour’s agreed list of banned substances, to confirm that the spray in fact contained or constituted a banned substance. During Singh’s suspension, WADA issued a public statement clarifying that use of the spray was not prohibited, and Singh argued that the PGA should have confirmed this fact with WADA before it suspended him.

Sports court is in recess.

Sports Law Roundup – 2/3/2017

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 week off to attend a fancy law conference, we’re back with the top sports-related legal stories from the past week or so:

  • Baylor sexual assault: The scope of the sexual assault scandal at Baylor University continues to expand. Last week, a former Baylor student sued the university because, she alleged, she was the victim of a group rape committed by two football players in 2013 that the school ignored. The plaintiff also alleged that football players were responsible for numerous other crimes “involving violent physical assault, armed robbery, burglary, drugs, guns, and, notably, the most widespread culture of sexual violence and abuse of women ever reported in a collegiate athletic program.” She further claims that, between 2011 and 2014, thirty-one Baylor football players committed a total of fifty-two rapes, including five gang rapes. The complaint makes out claims under Title IX and common-law negligence theories. One significant hurdle for the plaintiff is that both types of claims are subject to two-year statutes of limitations. Since her alleged rape occurred in 2013, the university is likely to seek a dismissal on that basis.
  • College football defamation: In more Baylor football news, former head coach Art Briles now has dropped the defamation lawsuit he filed just two months ago against three Baylor regents and the university’s senior vice president and CEO for their statements that Briles was aware of sex crimes reportedly committed by his players and failed to provide that information to proper authorities, among other claims. As of this writing, no one has made an official comment on Briles’ behalf explaining the dismissal, but it appears to be connected to documents some of the same defendants in the Briles case filed in a new defamation case brought this week by former Baylor football director of operations Colin Shillinglaw. Those documents supposedly demonstrate Briles’ awareness of and attempts to cover up his players’ wrongdoing. If you’re the TMZ type, you can read more about the contents of the alleged Briles communications here.
  • Wrestling ban: Iran has announced that it will not allow the American wrestling team to compete in the 2017 Freestyle World Cup, which the Iranian city of Kermanshah is hosting this month. The ban comes as a form of retaliation for President Donald Trump’s January 27 executive order temporarily blocking people from entering the United States from Iran and six other majority-Muslim countries.
  • Football head injuries: A state court judge in New York denied the NFL’s motion to dismiss a wrongful-death lawsuit brought by the son of deceased player Arthur DeCarlo Sr., who, his son alleges, died as a result of CTE he contracted from head injuries sustained while playing football. This is the only CTE case against the NFL that is outside of the federal multidistrict settlement based in a Pennsylvania federal court. Addressing a statute-of-limitations issue, the New York judge likened the case to asbestos claims by describing CTE as a latent condition, the manifestation of which is not discoverable until the completion of a posthumous autopsy. Meanwhile, on Monday, a group of former college football players filed suit against helmet manufacturer Riddell seeking class-action status and alleging that Riddell made false claims about its helmet’s ability to protect against concussions. This is the fifth active concussion-related lawsuit pending against Riddell.
  • Cheerleader wages: A former San Francisco 49ers cheerleader filed a complaint against the NFL and the twenty-six NFL teams that have cheerleaders, alleging that they conspired to suppress cheerleader wages (which are between $1,000 and $1,500 per year, according to the complaint) below market value. The unnamed plaintiff is seeking to represent a class of all NFL cheerleaders employed in the past four years.
  • Child abuse: Three former Penn State University administrators will face criminal child endangerment charges stemming from the Jerry Sandusky sexual assault scandal inside the university’s football program. PSU’s former president, senior vice president, and athletic director were successful in quashing charges of failing to report child sexual abuse, but their trials on the remaining charge will go forward next month.
  • Student-athlete rights: The general counsel of the National Labor Relations Board issued an official memorandum stating that football players at Division I FBS schools “are employees under the [National Labor Relations Act], with the rights and protections of that act.” The precise legal consequences of this memorandum are unclear, at least to this writer, but the practical consequences likely will include an increase in unionization attempts and unfair labor practice filings among student-athletes at the covered schools. The memorandum already has generated critical comments from some members of Congress who believe it would have “devastating consequences for students and academic institutions[,] puts the interests of union leaders over America’s students, and . . . has the potential to create significant confusion at college campuses across the nation.”
  • Baseball hacking: As punishment for their hacking of the Houston Astros’ database, MLB fined the St. Louis Cardinals $2 million and forced them to forfeit two 2017 draft picks (the fifty-sixth and seventy-fifth overall picks) to the Astros. In addition, the league banned the currently jailed St. Louis employee who hacked the Houston system multiple times from future MLB employment. Most commentators and team officials regard the sanction as a light one.
  • Daily Fantasy Sports: The European island nation of Malta has granted daily fantasy sports website DraftKings a license to operate in that country, and that license may allow the site to operate in other European jurisdictions that recognize the Maltese license as well.
  • Live game streaming: MSG has entered into an agreement with the NHL to broadcast the four New York and New Jersey hockey teams (Sabres, Rangers, Islanders, and Devils) on the network’s live streaming service, MSG GO, which is available for free to MSG subscribers. Meanwhile, another New-York-area network, SNY, will begin streaming Mets games on its own website and the NBC Sports app. (NBC previously reached a streaming agreement with MLB Advanced Media for in-market access to Cubs, White Sox, Phillies, Athletics, and Giants games starting this year.)

Sports court is in recess.

Sports Law Roundup – 1/13/2017

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:

  • College football head injuries: A group of former Texas Tech, Oklahoma, and TCU football players has sued the NCAA and Big XII conference, alleging that those entities breached contractual obligations to warn players of and take adequate steps to prevent head injuries. The plaintiffs are seeking class action status, and their lawyer has said that he expects to file similar lawsuits on behalf of more players this year.
  • Olympic surveillance: Two years ago, the former mayor of Salt Lake City and six SLC residents filed a proposed class action against George W. Bush, Dick Cheney, David Addington, Michael Hayden, the FBI, and the NSA, alleging that the federal government improperly spied upon people attending the 2002 Winter Olympics. Now, a judge has denied the NSA’s motion to dismiss the case and will allow it to proceed.
  • Gymnast abuse: In more Olympic news, eighteen women sued USA Gymnastics, the national governing body for gymnastics in the United States; Michigan State University; and a gym in the Lansing area. Their complaint alleges that an affiliated doctor molested and sexually assaulted the plaintiffs, some of whom were as young as nine years old when the alleged attacks occurred, and that the defendants failed to act appropriately upon their knowledge of this doctor’s actions. This is the third civil action involving this doctor, and criminal complaints also have been filed. The FBI reportedly recovered child pornography from the doctor’s electronic devices and is in possession of video evidence of the doctor perpetrating sexual assaults.
  • Baseball land shark attack: The judge overseeing a dispute between the Miami Marlins and a fan who alleges she suffered a serious neck injury in 2013 when a shark mascot, following an on-field race with other mascots, leaned into the stands and pretended to bite her head has ordered the parties to participate in mediation in advance of the case’s June trial date.
  • Concert dodgers: A concert promoter sued the Los Angeles Dodgers and Guggenheim Partners, the entity that owns the team, because, the promoter alleges, they failed to pay him a share of the proceeds from concerts by Paul McCartney and AC/DC hosted at Dodger Stadium for his work in securing those performances. The promoter says he’s owed $2 million, while a leaked draft response from the defendants reportedly tells him to “forget about the check, we’ll get hell to pay.”
  • Sports gambling legalization: Legislators in South Carolina and New York separately proposed amendments to their state constitutions that would legalize sports betting. The South Carolina proposal would allow all forms of gambling, while the New York one would be limited to allowing sports gambling at racetracks and casinos.
  • Preemptive free agency: Last week, we highlighted an article suggesting that a California employment law could allow certain athletes playing for teams in that state to unilaterally opt out of long-term contracts and become free agents. High-profile baseball agent Scott Boras subsequently weighed in on the subject and counseled against the idea largely because the transactional costs of attempting the move (i.e., years of litigation) likely would outweigh– and, due to time delay, probably completely negate– any potential benefit to the player.
  • CTE: This also is not a legal news story, exactly, but this space has highlighted a number of sports-related head-injury lawsuits in the past, which makes sharing this compelling and well-told story of a young person’s struggles with CTE appropriate. If you only click through to one link in this post, make it this one.

Sports court is in recess.

Sports Law Roundup – 1/6/2017

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 first week of 2017:

  • Baseball stadium funding: The Arizona Diamondbacks, seeking the right to “explor[e] other stadium options,” have sued the Maricopa County Stadium District after the District refused to authorize funding for the $185 million needed for capital repairs and improvements to Chase Field, which opened in 1998, according to an assessment completed by the District.The team has expressed willingness to cover all of the District’s expenses, but the District apparently must give its permission to proceed and thus far has declined to do so.
  • Student-athlete classification: In a case we have been monitoring in this space (here and here), the U.S. Court of Appeals for the Seventh Circuit has denied the request of a group of former Penn student-athletes for full-court (en banc) review of that court’s earlier rejection of their claim that they were employees entitled to minimum-wage compensation under the Fair Labor Standards Act. The denial of the request for further review leaves in place the court’s decision handed down last month. It is unclear whether the plaintiffs will request permission to appeal to the Supreme Court.
  • Daily Fantasy Sports: A DFS website argued that daily fantasy sports actually are illegal gambling in an attempt to avoid a $1.1 million lawsuit based on an advertising and sponsorship contract with the Minnesota Wild. I wrote more about this case here earlier this week. Meanwhile, a Maryland law authorizing the lawful, regulated conduct of DFS contests in that state, which is regarded as less restrictive than similar measures in other states, went into effect on Monday; a Florida legislator introduced a bill Wednesday that would declare DFS legal in that state; and FanDuel earned another win in a patent-infringement suit brought by two gambling technology companies in Nevada.
  • Preemptive free agency:  Nathaniel Grow has an interesting article on FanGraphs that illuminates a California employment law that could apply to allow even union employees like professional athletes to unilaterally opt out of long-term contracts after seven years of employment. This poses a potentially tantalizing, if legally unproven, opportunity for someone like Mike Trout, a generational talent not yet in his prime who likely could fetch an even more historically large contract were he to hit the open market now, at age twenty-five, rather than after the 2020 season, which is when his current contract ends.

Sports court is in recess.

Daily fantasy sports site argues that DFS is illegal in attempt to escape advertising contract

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Draft Ops was a daily fantasy sports (“DFS”) website, like FanDuel and DraftKings, that used to be the “official fantasy partner” of a number of sports teams and media outlets, including the Minnesota Wild. Last spring, the Wild sued Draft Ops, alleging that the site owed the team $1.1 million pursuant to an agreement that allowed Draft Ops to use the Wild’s name and logo in advertising materials.

In a creative, if risky, attempt to avoid its contractual obligations to the Wild, Draft Ops argued that the agreement was void because, it further argued, DFS constituted illegal gambling in Minnesota. After years of litigation and lobbying by DFS operators to expand and protect the legality of their enterprise, it is fairly remarkable to see a DFS site argue that its business is illegal.

On the other hand, if any DFS site was going to turn state’s evidence, it makes sense it’d be one like Draft Ops, which appears to be out of business, filed for bankruptcy last week, and is more concerned about how it’s going to make good on the $1.1 million it allegedly owes the Wild than it is about the ongoing viability of the business model.

Draft Ops hit a roadblock in the Minnesota case last week, though, when the judge allowed the case to proceed, explaining that it was not clear that DFS was illegal under Minnesota law, and that, even if DFS clearly was illegal in the state, there still could be grounds on which the court could enforce the contract, which, the judge noted, was a sponsorship and advertising contract, not a gambling contract.

If this strategy sounds familiar, that’s because it essentially is the same one people who lost money playing DFS tried in lawsuits they filed against the DFS sites themselves last year.

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Related
DraftKings and FanDuel finally announce inevitable merger agreement
Lose money playing DraftKings or FanDuel? File a lawsuit.

Sports Law Roundup – 12/9/2016

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:

  • College football defamation: On Thursday, former Baylor head football coach Art Briles sued three Baylor regents and the university’s senior vice president and CEO claiming that they defamed him by stating that he had knowledge of sex crimes reportedly committed by his players and failed to provide that information to proper authorities. In addition, Briles alleges that the officials sought to prevent him from securing another coaching position elsewhere. He also included a claim for intentional infliction of emotional distress, and, in total, seeks unspecified damages in excess of $1,000,000. Here is a picture of Briles’ longtime attorney, Ernest H. Cannon, riding a horse at a rodeo.
  • Football player suspension challenges: In related stories covered in this space last week, two NFL players represented by the same Ohio law firm launched collateral attacks on the NFL/NFLPA collective bargaining agreement targeting alleged procedural deficiencies in the suspension-appeal process after both were suspended for drug violations. The NFL and NFLPA now have taken action in one of those cases by appointing a third arbitrator to hear a rescheduled appeal by Green Bay Packer Mike Pennel. The absence of a third arbitrator is central to the claims Pennel raised in the lawsuit he filed in Ohio federal court. In connection with that suit, Pennel also sought a temporary restraining order, which the responsive actions by the league and union were designed to moot. On Tuesday, Pennel agreed to drop his lawsuit in exchange for a reduction– from ten games to four– in his suspension, which will allow him to play in the postseason should his Packers secure a playoff berth. (Pennel’s attorneys also represent Philadelphia Eagle Lane Johnson, who filed similar complaints with the National Labor Relations Board and U.S. Department of Labor around the same time Pennel filed his lawsuit.)
  • Student-athlete classification: The United States Court of Appeals for the Seventh Circuit rejected claims by a group of former Penn student-athletes that they are employees entitled to minimum-wage compensation under the Fair Labor Standards Act. The trial court granted a motion to dismiss the defendants– the NCAA, Penn, and more than 120 other NCAA member schools– filed, and the appellate court affirmed. The court agreed that dismissal as to the non-Penn defendants was appropriate because of a lack of standing; the plaintiffs had attended only Penn and had no basis to recover wages from any school they didn’t attend. The court also agreed that dismissal was appropriate as to Penn, because the plaintiffs had failed to state a claim for relief from Penn. Noting the “revered tradition of amateurism in college sports” and the weight of judicial and regulatory precedent holding that student-athletes are not employees, the court concluded that the FLSA does not apply to student-athletes. While many disagree with this outcome, it is consistent with the original meaning and purpose behind the “student-athlete” designation. (In a concurring opinion, Judge Hamilton cautioned against broad application of the court’s decision, noting that the plaintiffs participated in a non-revenue sport– track and field– for a school that does not offer athletic scholarships, and suggested that he might have voted differently had the plaintiffs been student-athletes on athletic scholarship in a revenue sport.)
  • Hockey head injuries: A group of former NHL players suing the league for its alleged failure to warn them of known risks of head trauma now have requested class certification in that case for two classes of former players based on the different measures of relief sought: damages for those already diagnosed with neurological injuries and medical monitoring for others. Attorneys from a number of large law firms, including Skadden Arps Slate Meagher & Flom, are representing the NHL in this case. Skadden is the anchor tenant in a new commercial real estate development in Manhattan that also will be home to the NHL’s offices when it opens in 2019.
  • Minor League Baseball lobbying: MiLB has created a political action committee in order to boost lobbying efforts. The impetus for this move likely is the class-action lawsuit minor-league players filed alleging that their compensation violates federal wage and hour laws and the leagues’ attempt to snuff out that suit by way of congressional action. The proposed Save America’s Pastime Act would create a carve-out in the Fair Labor Standards Act exempting minor-league players from minimum-wage and overtime protections. There has been essentially no action on the bill since Rep. Brett Guthrie of Kentucky introduced it in June, leaving plenty of time for MLB to say dumb things about it.
  • Soccer ban: The Court of Arbitration for Sport denied former FIFA president Sepp Blatter’s request to overturn his six-year ban from all national and international soccer-related activity and fine of 50,000 Swiss francs for his involvement with bribes and kickbacks during his leadership of FIFA.
  • Canadian Super Bowl commercials: There is a thing in Congress called the House Northern Border Caucus, and four of its members, representing districts in North Dakota, New York, and Washington, sent a letter asking the Canadian government to reverse its decision to block Canadian advertisers from running commercials on the Canadian broadcast of the Super Bowl. Canadian broadcasters used to have an agreement with the NFL that allowed Canadian commercials on the Canadian broadcast of the game, but, in 2015, Canadian regulators changed course in response to viewer demands to see the popular American commercials that run during the game. Canadian broadcasters and advertisers and the NFL, which is losing out on Canadian advertising revenue as a result, all oppose that change. The company that holds the Canadian broadcast rights to the Super Bowl, Bell Media, also has sued the regulatory body in an attempt to reverse the policy.
  • Hockey logo: Things are off to a rough start for Las Vegas’ first major professional sports team after the U.S. Patent and Trademark Office denied the Golden Knights’ registration application, citing a “confusing[] similar[ity]” to a mark registered by the College of Saint Rose. Arguable visual similarities aside, I didn’t even know there was a Saint Rose, much less a College of Saint Rose, and I certainly didn’t know the school’s mascot is the Golden Knights, and neither did you, which means that, however similar these marks might be, the likelihood of confusion here is very low. This likely is little more than another instance of the USPTO seeking a moment in the sports sun.
  • Gambling: The nation of Antigua and Barbuda has issued a threat to the United States if the U.S. does not meet a year-end deadline to comply with a 2003 World Trade Organization order ruling that American online sports betting and gambling laws violate international law. If the U.S. does not comply with the WTO order, which also carries an annual noncompliance penalty of $21 million and has accrued to over $250 million, Antigua and Barbuda intends to suspend intellectual property protections for Americans, effectively permitting Antiguans to establish websites hosting royalty-free downloads of American IP (e.g., books, music, movies, television programming, etc.).
  • Baseball ambassador: Bobby Valentine, former MLB player and manager of the Mets and Red Sox, reportedly is under consideration by president-elect Donald Trump for the position of ambassador to Japan. Valentine, who currently serves as athletic director at Sacred Heart University, is popular among Japanese baseball fans thanks to two successful stints as manager of a professional baseball team there.

Sports court is in recess.