The NFL Players Association is suing DraftKings over an anticipated breach of contract that could relate to the sportsbook’s shuttered NFT product.
The lawsuit was filed Tuesday in the Southern District Court of New York. Specifics about the case are unavailable, though, as the filings are sealed.
A cover sheet for the filing states the NFLPA is seeking damages for an “anticipated breach of parties’ contract” or an actual breach by DraftKings.
Neither DraftKings nor the NFLPA responded to requests for comment at the time of publication.
What could DraftKings lawsuit concern?
While nothing is confirmed, sources indicate the lawsuit could concern the players association’s contract with DraftKings concerning Reignmakers.
The iGaming operator ended the NFT product suddenly at the beginning of August and cited legal issues:
“After careful consideration, DraftKings has decided to discontinue Reignmakers and our NFT Marketplace, effective immediately, due to recent legal developments,” the statement reads. “This decision was not made lightly, and we believe it is the right course of action.”
The NFLPA signed two deals with DraftKings concerning Reignmakers. The two announced NFT-based games in December 2021 and added a superhero collaboration in December 2022.
More than $30 million owed?
The NFLPA is owed nearly $32.4 million dollars by OneTeam Partners, according to its 2023 annual report. OneTeam Partners is “the commercial rights holder and arm of 8 Players Associations and tens of thousands of college athletes,” the company says on its website.
The NFLPA was one of the founding partners. OneTeam facilitated the initial deal with the NFLPA and DraftKings.
A footnote in the report says there is “uncertainty surrounding certain accounts receivable from OneTeam Partners.” There was a similar footnote in the 2022 report when the total account receivable was $41.8 million.
Last April, Sportico reported Dapper Labs, the platform for those NFL NFTs, discussed a possible restructuring of its license deal with the players association.
Multiple unredacted files submitted
Along with a redacted termination letter and complaint, there were unredacted versions of both filed Tuesday.
There is also an amended license agreement and the original agreement.
