The NFL Players Association (NFLPA) is taking legal action against one of the league’s official sports betting partners.
According to a court filing in the Southern District of New York, the NFLPA has filed a civil suit against DraftKings seeking damages for an “anticipatory breach of contract.” The sealed filing does not include details of the NFLPA’s suit against DraftKings but it may be related to the DFS and sports betting giant shuttering its NFT marketplace last month.
The NFLPA has filed its suit against DraftKings as the two entities have collaborated on several NFT activations in the past.
In 2021, the NFLPA and DraftKings announced plans to launch gamified NFT collections sold through the operator’s marketplace. The deal, facilitated by OneTeam Partners, granted DraftKings licensing rights to active NFL players during the 2022-23 season.
DraftKings and the NFLPA also teamed up in 2022 to create limited-edition NFT player cards with superhero themes. The deal also included IP development group Pixel Vault.
Now, the NFPA and DraftKings have a fractured relationship after the operator closed its NFT marketplace amid legal woes in its home state. A Massachusetts District Court judge recently denied DraftKings’ motion to dismiss a class action lawsuit over its NFTs.
The lawsuit, first filed in 2023 by plaintiff Justin Dufoe, alleges DraftKings provided NFTs and tokens through the marketplace that amounted to unregistered securities. A judge determined that Dufoe’s claims had merit leading to the denial of a motion to dismiss.
Owners of the NFT products will be compensated for DraftKings’ decision to close up shop, which could mean the NFLPA is in for a payday due to its previous relationships. It is unclear how much DraftKings could owe the NFLPA as the legal process moves forward.
According to a 2023 annual report from NFLPA, the labor union had $32.3 million for the amount attributable to its business deals with OneTeam Partners.
