Lloyd Howell’s first big move as the NFL Players Association’s executive director turned out to be a costly one. In a recent ruling, the NFLPA was instructed to pay $7 million to Panini after an arbitration decision regarding the termination of their exclusive trading card deal last year.

The disagreement stemmed from the NFLPA’s decision to end its contract with Panini after key Panini employees switched to rival company Fanatics. The NFLPA cited a “change in control” clause as the reason for the contract termination. However, Panini argued that this was just a cover-up for the switch to Fanatics, a claim that the arbitrators sided with.

Panini’s attorney, David Boies, expressed satisfaction with the arbitrators’ unanimous decision, emphasizing that the NFLPA’s actions not only breached their legal obligations but also had financial repercussions for their members, fans, and collectors. He highlighted that Panini’s commitment to fans and players, by continuing to produce cards despite the NFLPA’s actions, prevented even greater damages.

While Fanatics was not directly involved in the arbitration, Panini has taken legal action against them, accusing them of antitrust violations and tortious interference. As of now, the NFLPA has provided no comments on the matter.

The financial blow dealt by this arbitration ruling not only affects the NFLPA’s bottom line but also calls into question its decision-making processes and its loyalty to its members, fans, and the wider trading card community.

Source