News

Lloyd Howell’s initial major business decision as the executive director of the NFL Players Association (NFLPA) has resulted in a significant financial loss. According to Eriq Gardner of Puck.news, the NFLPA has been ordered to pay $7 million to Panini after an arbitration ruling over the termination of their exclusive trading card contract last year.

The conflict began when the NFLPAvterminated its agreement with Panini following the departure of several key Panini employees to rival company Fanatics. The NFLPA invoked a "change in control" clause to justify breaking the contract. However, Panini contended that this was merely a pretext for switching allegiances to Fanatics, and the arbitrators agreed.

“The unanimous decision of the arbitrators confirms what we have said from the beginning: The NFLPA’s termination of its contract with Panini violated its legal obligation to Panini, its moral obligation to fans and collectors, and its fiduciary duties to its members,” Panini’s attorney David Boies told Gardner. “The PA’s actions cost its members millions of dollars in damages and lost royalties. The damages would have been many times greater except for Panini’s commitment to protecting fans and collectors, and the players themselves, by continuing to supply cards despite the PA’s purported termination.”

Although Fanatics was not directly involved in the arbitration, Panini has filed a separate antitrust and tortious interference lawsuit against them. The NFLPA has not yet responded to requests for comment from Puck.news.

This arbitration outcome not only impacts the NFLPA financially but also raises questions about its decision-making process and its commitments to its members, fans, and the broader trading card community.