Sports Law Roundup – 4/7/2017

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.

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

    • MLB defamation: A judge will allow a defamation lawsuit brought by Washington Nationals first baseman Ryan Zimmerman and former Philadelphia Phillies designated hitter Ryan Howard against Al Jazeera and two of its employees to proceed. The Ryans’ case relates to a documentary that aired on the television network in 2015 that included claims that they were among a group of players who purchased performance-enhancing drugs from an anti-aging clinic. In partially denying the defendants’ motion to dismiss the case, the judge explained that the argument that Al Jazeera and its employees simply were reporting the statement of an employee at the clinic “is unpersuasive, because a reasonable viewer could certainly have understood the documentary as a whole to be an endorsement of Sly’s claims.” The ruling was not a total victory for Howard and Zimmerman, however, as the judge did dismiss claims related to a related news article about the documentary, as well as all claims against one of the Al Jazeera employees, an undercover investigator. Since the airing of the documentary, the clinic employee has recanted his statements.
    • Athlete financial adviser: 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. He could spend as many as twenty years in prison and owe a fine of as much as $250,000, plus restitution to Duncan. Duncan filed a separate civil lawsuit against the advisor, which was stayed pending the resolution of the criminal action.
    • NFL streaming: The NFL and Amazon have reached a one-year agreement, reportedly valued at $50 million, that grants Amazon the exclusive streaming rights for ten of the NFL’s Thursday night games in 2017. Last year, the NFL partnered with Twitter on a streaming deal for the Thursday games reportedly worth $10 million.
    • NFL fax machine: A court has preliminarily approved a settlement in a case involving a claim that the Tampa Bay Buccaneers violated federal law by faxing unsolicited advertisements for game tickets to local businesses in 2009 and 2010. Final settlement payout numbers are not yet available, but, in the meantime, we can ask: did the faxes work?
      bucs home attendance

Sports court is in recess.

Sphaera Veritas: An investigation

If there are two constants in this world they are that 1) Bill Simmons’ The Ringer website, roughly a year after its launch, is a remarkably unessential destination on the sports web and 2) ball don’t lie. Now, however, there’s reason to question both of those constants.

In just the sort of article that site ought to be running, The Ringer today puts to the test Rasheed Wallace’s presumptive– and heretofore unquestioned– universal edict that ball, in fact, don’t lie, and asks some hard questions.

Sports Law Roundup – 12/16/2016

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:

  • NBA CBA: Like baseball, the NBA has a new collective-bargaining agreement. Full details are not yet public, but it appears there will be salary cap and luxury tax changes, as well as an increase– from thirteen to fourteen– in the number of guaranteed roster spots for each team. The league also has agreed to shorten the preseason and expand the calendar length of the regular season without increasing the number of regular season games. One aspect that will not change is the manner in which the players and owners divide basketball-related income. The players conceded roughly seven percent (approximately from 57% to 50%) during the last lockout in 2011.
  • NFL concussion settlement: Earlier this year, the NFL settled a class-action lawsuit brought by former players seeking compensation for ongoing problems related to head injuries suffered during their professional football careers by agreeing to provide a fund to compensate former players for the next sixty-five years. The U.S. Court of Appeals for the Third Circuit affirmed the settlement, but a small subset of the class members– approximately thirty of 22,000– were dissatisfied with the settlement, believing it was underinclusive because it did not provide relief for former players who develop CTE, the disease found in people who suffer from repeated brain trauma that, at this time, is not detectable while the player is alive. Seeking further review of the settlement, these plaintiffs petitioned the Supreme Court. On Monday, the Court declined to grant their petition, leaving in place the Third Circuit’s ruling. It is unclear whether these objecting plaintiffs have any further recourse, though they likely are watching the new lawsuit highlighted in this space last month that specifically addresses CTE.
  • Student-athlete classification: As discussed here last week, 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. Now, those students plan to request en banc review, meaning that they will ask the full panel of Seventh Circuit judges to reconsider the decision. (Federal circuit courts typically hear cases in three-judge panels, even though more than three judges make up each of the federal circuit courts. Aside from an appeal to the Supreme Court, which may not even be accepted, the only way to reverse a circuit court ruling is to ask the full court to do so.) The plaintiffs contend that the amateur aspect of collegiate athletics the ruling noted is not pertinent to an FLSA analysis, and that the Seventh Circuit’s decision “conflicts with decisions in this and other circuits on employee status.”
  • Raiders stadium: In an apparent attempt to keep the Raiders from moving to Los Angeles or Las Vegas, the Alameda County Board of Supervisors voted to support the building of a new football stadium in Oakland that– unlike the new basketball arena being built for the NBA’s Warriors that will relocate them from Oakland to San Francisco–  would be funded, in significant part, with public money. The Board’s vote does not guarantee that the Raiders will stay in Oakland.
  • Rams fans: St. Louis-area holders of Rams personal seat licenses suing the team after its move to Los Angeles now have requested class-action status. The plaintiffs are seeking a variety of forms of relief, including reimbursement for tickets and concessions. A judge already has ruled that some of the plaintiffs who want the team to continue to honor the licenses by allowing the St. Louis fans to purchase season tickets at the team’s new home in L.A. are entitled to do so.
  • NFL broadcasting: The plaintiffs in an antitrust lawsuit targeting NFL Sunday Ticket, the product of the exclusive agreement between the NFL and DirecTV for the television broadcasting of out-of-market NFL games, won an apparently significant victory when Fox and CBS agreed to produce documents evidencing their own Sunday-Ticket-related agreements with the league and DirecTV in connection with a judge’s discovery order. The NFL contends that the plaintiffs have failed to allege an antitrust violation because the NFL can decide how to broadcast its games, and the Sunday Ticket package represents an addition to viewers’ existing options (i.e., the one or two games available each Sunday afternoon on Fox and CBS, plus the national Thursday/Sunday night/Monday night broadcasts) rather than a restriction.
  • Secondary ticket market: The President has signed the BOTS Act, a bill that expands the authority of the Federal Trade Commission to regulate the online secondary market for event tickets. The new law seeks to prohibit “ticket bots and other online tools that deliberately circumvent security protocols limiting or restricting online ticket purchases.” Here’s hoping this law will provide a more meaningful benefit to sports fans than the NFL’s practically meaningless agreement to end its league-wide imposition of a price floor on game tickets sold on the secondary market.
  • Formula One acquisition: Liberty Media, the company that owns the Atlanta Braves, will acquire auto-racing series Formula One for $4.4 billion. According to a reputable source, F1 cars are the fastest in the world among road-course racing cars.
  • MLB CBA: I wrote about the new CBA in this space after the league and players union reached their agreement on November 30. Now we have more information about the particularities of the agreement, and this analysis provides a helpful overview. We also learned that the Tampa Bay Rays were the only team to vote against approving the agreement. In a public statement, the Rays’ general managing partner made reference to an “opportunity [that] was missed” to “address the extraordinary and widening competitive gap that exists on-field between higher and lower revenue clubs.”

Sports court is in recess.

Sports Law Roundup – 12/2/2016

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:

  • MLB CBA: Shortly before the December 1 deadline, MLB and the MLBPA reached agreement on a new collective bargaining agreement that will govern the sport for the next five years.
    2016-mlb-cba
    Details still are emerging, but early analyses are labeling this round of negotiations another win for ownership. (Others see it as a mere “setup for war in 2021.”) One of the most visible changes fans will notice is that the All Star Game no longer will determine home-field advantage in the World Series; instead, that perk will go to the team with the better regular-season record. Another aesthetic change: no more chewing tobacco (although current players are free to chaw down; the ban only applies to new players as they enter the league). Following in the NFL’s footsteps, MLB has indicated plans to play a regular-season game in a foreign country, possibly England or Mexico, as soon as 2018.
  • Football player suspension challenges: Lane Johnson, a fourth-year offensive tackle for the Philadelphia Eagles who is serving a ten-game suspension following a second failed test for performance-enhancing drugs, has challenged his suspension by filing complaints against the NFL and NFLPA with the National Labor Relations Board and U.S. Department of Labor, alleging that the suspension procedure violated his rights under his employment contract and federal labor law. While the filings currently are not public, Johnson’s challenge appears, based on a statement from his lawyer, to be a collateral attack on the collective bargaining agreement itself: “During Lane’s appeal, it became apparent that the written words in the collectively bargained Performance-Enhancing Substances (‘PES’) Policy, under which Lane was disciplined, are meaningless. The NFL and NFLPA have undermined these protections leaving the players — including Lane — with a hollowed-out process devoid of any protections.”
    Faced with a similar situation, Mike Pennel, a third-year defender for the Green Bay Packers, is challenging the adequacy of the suspension-appeal procedures by filing an action in federal court. Pennel’s allegation is that the use of only two arbitrators, rather than three, for his appeal hearing violated the league’s substance-abuse policy.
    Both Pennel and Johnson are represented by the same law firm, Ohio-based Zashin & Rich.
  • NBA arena: A court’s denial of two citizens’ organizations’ petitions will allow construction to proceed in San Francisco on a new, privately financed, $1 billion arena for the Golden State Warriors. The groups had sought to block the project because, in their view, the city’s environmental analysis was insufficient, specifically including an allegation that increased traffic would interfere with the operation of the nearby UCSF hospital. The Warriors will leave their current home in Oakland to begin play in the new San Francisco arena in 2019.
  • Sharper sentencing: A judge sentenced longtime NFL safety and serial rapist Darren Sharper, previously most famous for playing fourteen seasons for the Packers, Vikings, and Saints, and for his supporting “role” in this viral video, to twenty years in prison as part of a plea bargain in which Sharper admitted to drugging and raping women in four states. Sharper, whose victims number more than a dozen, previously pleaded guilty in a federal trial for drugging three women so he could rape them and is appealing the eighteen-year sentence he received in connection with that plea.
  • Inmate phone calls: Former Florida Gator and New England Patriot Aaron Hernandez, who is incarcerated in Massachusetts following his conviction for murdering one person and being charged with multiple additional murders, has sued Securus Technologies, one of the largest providers of inmate telephone services. Based on media reports of a Securus data breach, Hernandez’s suit alleges that the company failed to protect privileged and confidential information, such as telephone calls between Hernandez and his lawyers.
  • Whistleblowing coach: A judge awarded former Penn State football coach Mike McQueary an additional $5 million Wednesday after determining that the school terminated his employment as a result of his testimony against other PSU officials who failed to act in response to McQueary’s report on child sexual abuse by another football coach. McQueary previously won $7.3 million in a jury trial on claims related to the university’s investigation of the assault and its related defamation of McQueary. (Yes, the PSU community really did attack McQueary for reporting a football coach’s child sexual abuse. Four years later, that community appears to be as delusional as ever.)
  • Football painkillers: In an update to a story previously highlighted in this space, a judge has ordered Dallas Cowboys owner Jerry Jones to sit for a deposition in a lawsuit by former NFL players alleging that teams irresponsibly dispensed painkillers to their players in order to keep them on the field, granting a discovery victory to the players. The victory was a partial one, however, because the judge denied the plaintiffs’ request to depose Jim Irsay, the owner of the Indianapolis Colts, famous guitars, and a personal history of painkiller abuse.
  • Super Bowl hotel rooms: Marriott has emerged victorious in a contract dispute with a sports travel agency after a judge ruled that the hotel chain was not bound by its obligations to the agency to provide 300 rooms for the Super Bowl in Houston, because the agency, in selling 240 of the rooms to another broker, violated a no-transfer provision of the agreement with Marriott. When Marriott cancelled the contract, the agency sued, accusing Marriott of violating their contract in order to pursue a more lucrative opportunity with the NFL and alleging that Marriott knew of the agency’s practice of reselling rooms. Even if that was true, the judge explained, the no-transfer clause was clear, and the agency could not enforce a contract it had breached.

Sports court is in recess.

John Calipari, hero anti-NCAA crusader?

NCAA Men's Championship Game - Kansas v Kentucky

Those who oppose the NCAA as an old-fashioned, draconian regulatory body designed for the sole purpose of maintaining profit-driven financial control over a highly valuable workforce are praising yesterday’s comments by University of Kentucky men’s basketball coach John Calipari, who addressed a basketball-related change in NCAA rules that will allow college players to declare for the NBA draft and, if invited, attend the NBA combine before they have to decide whether to withdraw from the draft in order to maintain their collegiate eligibility as follows:

Met with our team today. Told them that during the season it’s about the team and sacrificing for each other – which they did this year. When the season’s over, it’s about each individual player and what’s right for them and their families.

With that being said, every player who is eligible for the draft, including our walk-ons, will submit their names for the NBA Draft in hopes of being invited to the combine in May. The new rule states they can submit their name a total of three times. If they choose to withdraw, they have until 10 days after the combine. It’s a true win-win for the student-athlete.

Just so you know, having every kid put their name in the draft is about all players getting the right information. Players not invited to the combine know what that means. Players invited to the combine and told to go back to school know that that means. As I said, it’s a win-win for the student athletes. I like the rule.

(Emphasis added.)

On one hand, Calipari is right to encourage his players to gain as much information as they can about their professional prospects, especially where there is no penalty to the player for seeking that information. The new regime– allowing players to wait until after the combine to decide whether to withdraw from the draft– provides players considering continuing their basketball careers on a professional level a valuable option.

Calipari isn’t merely praising this change as a beneficial option for “student-athletes,” however. Continue reading

The latest news in sports technology

Daily fantasy sports now are legal in one state, Mike Trout’s high-tech bat could make him even better this season, free hockey streaming, and American soccer stats from a German car company, all in my most recent post for TechGraphs, a roundup of last week’s top sports technology stories.

The full post is available here.

Atlanta Hawks make NBA All-Star Game history, good and bad, in consecutive seasons

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In 2015, the Atlanta Hawks became just the eighth team in NBA history to place four players on the all-star team in the same season. Despite returning those same four starters– Al Horford, Paul Millsap, Jeff Teague, and Kyle Korver– in 2016, only one Hawk, Millsap, is an all-star this season, making Atlanta the first team in NBA history ever to follow up a four-all-star season with a season in which only one (or fewer) of its players made the all-star team. (For purposes of the 1998 Lakers, I looked to the 2000 ASG, the event having been cancelled in 1999 due to an owners’ lockout.)

Furthermore, due to an ankle sprain he suffered in last night’s loss to the Pacers, Millsap might not even make an appearance in next month’s All-Star Game.

The Hawks’ 27-21 record is good enough for first in their division and fourth in the Eastern Conference.