File - Jonathan A Jordan

The Sports Lawyer
May 2013
T HE S PORTS L AWYER
In This Issue
May 2013
Faculty Editors
Retired Players Settle with NFL
over Right of Publicity Suit
Qiaodan Sports Countersues
Michael Jordan
Boise State Seeks to Void Big
East Penalty
White Sox Owner and Former
Illinois Governor Sued
Also
Gary Roberts – Indiana University Robert H.
McKinney School of Law
Gabe Feldman – Tulane University Law School
Student Editors
Ian Gunn– Senior Managing Editor
Ryan Leske – Senior Articles Editor
Joseph Nguyen – Junior Managing Editor
Jeff D. Karas – Junior Articles Editor
Staff
Aaron T. Brown
Shauna DiGiovanni
Ryan E. Feder
Erin Gardner
Jonathan Jordan
Austin Priddy
Marshall Rader
Jury Finds Riddell Liable in Negligence Suit
Fox Sports Executive Sues for Race Discrimination
Jared Odrick Sues Financial Advisor for Fraud
Fred Davis Sued for Defamation
Family Files Discrimination Lawsuit against Batavia
Schools
The Sports Lawyer is a joint publication
between the Sports Lawyers Association and
the Tulane Sports Law Press.
Table of Contents
National Football League – 2, National Basketball Association – 5, National Collegiate Athletic Association – 6,
Major League Baseball – 7, High School Sports – 8, Sports Business – 10
, NASCAR – 9
1
The Sports Lawyer
May 2013
National Football League
Retired Players Settle with NFL over Right of Publicity Suit
On April 5, 2013 U.S. District Judge Paul A. Magnuson
granted preliminary approval of a proposed settlement in
a trademark infringement suit filed by Fred Dryer and
other former National Football League (NFL) players
against the NFL. Despite objections by some of the
named plaintiffs, Judge Magnuson held that the merits of
the case and the complexity and expense of further
litigation weighed heavily in favor of the proposed $50
million settlement. See Dryer v. National Football
League, CIV. 09-2182 PAM/AJB, 2013 WL 1408351 (D.
Minn. Apr. 8, 2013).
On August 20, 2009, John Frederick Dryer, along with
five other retired NFL players, filed suit against the NFL
in the United States District Court for the District of
Minnesota on behalf of all other retired players suffering
alleged injury by the NFL’s unauthorized use of their
names, images, and likenesses to promote the NFL, sell
NFL-related products, and otherwise generate revenue for
the NFL. The former players alleged the NFL used their
identities to promote the “glory days” of the NFL in
films, highlight reels, and memorabilia as an advertising
technique and significantly increased its revenue without Fred Dryer and five other retired NFL players accused
the NFL of using their names, images, and likenesses to
compensating the players who created those “glory days.” promote the “glory days” of the NFL.
They contend that many of the retired players the NFL
uses to promote itself, who played in the league for only modest salaries at the time, incurred serious
disabilities that they continue to suffer from by participating in games that the NFL now uses to make
money. The players sought compensation for the NFL’s past use of their identities and injunctive relief
preventing the same conduct in the future. A group of players filed a joint motion for settlement with
the NFL after three years of litigation. However, some original named plaintiffs have objected to the
settlement claiming the terms are not favorable for players who first filed suit.
In a twenty-one page opinion, Judge Magnuson granted preliminary approval of the $50 million
settlement, stating that “[t]he benefits of this settlement to the class are plain: it will assist those who
most need assistance, and will resolve the very problem that this lawsuit seeks to address by allowing
former players true access to the value of their rights of publicity.” In addition to covering the plaintiffs’
costs and attorneys’ fees, the NFL will pay the costs for establishing a licensing agency for retired
players to market their publicity rights with the permission and blessing of the NFL. The NFL will also
use $42 million of the settlement to fund a “common good” trust that will be set up to benefit retired
players and will be overseen by a panel of former players. The fund will be used medical research,
mental health programs, housing costs, and career transition programs. Judge Magnuson addressed the
objections to the settlement by some of the plaintiffs by noting that “the individuals who originally
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The Sports Lawyer
May 2013
brought this lawsuit who now oppose the settlement rode into Court on the banner of saving their
downtrodden brethren . . . It is the height of disingenuousness for these same Plaintiffs to now complain,
like children denied dessert, that the settlement does not benefit enough the individuals who brought the
lawsuit.” The final approval hearing for the settlement is set for September 19, 2013.
“We were able to finalize this agreement and for the first time in history retired players will be
represented at the table,” said former NFL player Jim Brown. “We look forward to building an
unprecedented new relationship with retired players that will benefit everybody, especially those who
need extra medical or financial assistance,” said NFL Commissioner Roger Goodell in a statement
issued by the league.
-- Shauna DiGiovanni
Jared Odrick Sues Financial Advisor for Fraud
On April 19, 2013, the law firm
Sonn & Erez, PLC announced that
Miami Dolphins defensive end
Jared Odrick had filed a lawsuit
with the Financial Industry
Regulatory Authority (“FINRA”)
against the financial firm Success
Trade and financial adviser Jinesh
“Hodge” Brahmbhatt of Jade
Management.
Odrick alleges
Success Trade and Hodge sold up
to $18 million in fraudulent
promissory notes to fifty-eight
investors,
including
thirty
professional athletes.
The National Football League
Players Association (“NFLPA”)
Jared Odrick filed a lawsuit alleging that Success Trade, a financial firm, orchestrated a
has
a
Financial
Advisor
Ponzi scheme that defrauded thirty professional athletes.
Registration Program, which was
created to help provide players with an increased opportunity to safeguard their investments and prevent
fraud. In order to participate in the program, advisors must meet several professional benchmarks. The
NFLPA’s website states, “anyone with civil, criminal regulatory history related to fraud or pending
customer complaints or litigation at the time of application will be denied approval.” Before deciding to
invest with Hodge, Jared Odrick reached out to the NFLPA. FINRA records indicated that Hodge had a
clean history. Upon the NFLPA’s approval of Hodge, Odrick went forward with his investment plans.
Although Hodge appeared to have a clean history, his employer, Success Trade, did not. In 2012,
Success Trade allegedly violated the Securities Exchange Act. Without admitting or denying the
allegations, the firm consented to sanctions and a $100,000 fine. Odrick’s representatives described his
losses at the hands of Hodge and Success Trade as “substantial.” Odrick is seeking damages to recover
some of his losses due to the alleged fraud.
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The Sports Lawyer
May 2013
“We intend to aggressively prosecute this case and hold everyone who participated in this alleged Ponzi
scheme at Success Trade and Jade Wealth Management responsible for their actions,” said Odrick’s
attorney Jeffrey Erez. Odrick is represented by Erez and Jeffrey R. Sonn of Sonn & Erez, PLC in Fort
Lauderdale, Florida, as well as Aaron R. Resnick of Aaron Resnick, P.A. in Miami.
-- Ryan E. Feder
Fred Davis Sued for Defamation
On April 9, 2013, Makini R. Chaka
and Remy Enterprise, LLC sued
Washington Redskins tight end Fred
Davis in the United States District
Court for the District of Columbia for
defamation, invasion of privacy, and
intentional infliction of emotional
distress. The plaintiffs allege that
Davis referred to Chaka as a “madam”
and a “pimpette” during a 2011 lawsuit
between the two parties.
Chaka and Davis were involved in a
lawsuit two years ago stemming from
a nightclub altercation in Washington,
D.C. In the court filings in that case,
Washington Redskins tight end Fred Davis is being sued for defamation after
Davis and his bodyguard testified that
testifying that a woman was a “madam” and a “pimpette” in a proceeding
Chaka is a madam and a pimpette, who
concerning a nightclub altercation.
is well known for providing escorts to
athletes and entertainers. Chaka has vehemently denied these claims and asserts that the false claims
have led to considerable damages in the form of decreased sales for her company. Chaka claims that her
company earned over $60,000 a year before Davis’ comments, and now makes less than $30,000 a year.
Chaka is seeking damages in excess of $75,000.
“As a direct, foreseeable, and proximate result of Davis’ … intentional illegal conduct … [Chaka and
her company] suffered injuries and damages, including but not limited to lost income and profits,
damage to their reputations, and emotional distress,” Chaka stated in her complaint. Chaka is
represented by Patrice A. Sulton of Sulton Law Offices, PLLC in Washington, D.C. Davis is
represented by George J. Wooditch, Jr. of The Law Offices of Anderson, Graham & Wooditch, P.C.
-- Marshall Rader
4
The Sports Lawyer
May 2013
National Basketball Association
Qiaodan Sports Countersues Michael Jordan
On April 2, 2013, Qiaodan Sports filed a
countersuit against Michael Jordan in
response to his suit in the Quanzhou City
Intermediate People’s Court in Fujian, China,
for tarnishing the sportswear chain's
reputation and delaying its initial public
offering.
Qiaodan Sports claims that
Jordan’s initial suit for unauthorized use of
his name has caused the sportswear chain
damages.
In 2012, Jordan initially sued Qiaodan for
unauthorized use of his name, as Jordan's
name translated in Chinese is “Qiaodan.”
However, Jordan does not hold a registered
Chinese trademark for his Chinese name.
Qiaodan has denied the infringement claim
and alleges that it chose a common foreign
family name. The chain stated in 2012 that it
has the exclusive right to use the trademark
and is operating within Chinese law. Chinese company, Qiaodan sports has accused Michael Jordan of
tarnishing its reputation and delaying its initial public offering after
Chinese law also protects parties who hold Jordan filed a lawsuit alleging unauthorized use of his name.
registrations, but a provision states that
businesses cannot freely use the names of famous people even if they do not have registered Chinese
trademarks. Qiaodan planned to list its initial public offering in March 2012, but the lawsuit delayed
approval by the China Security Regulatory Commission. Qiaodan is seeking $8 million in damages.
“Qiaodan Sports is demanding an apology from Mr. Jordan, asking him to stop infringing the company’s
right to operate freely in China,” said Qiaodan's legal representative Ma Dongxiao. A spokesperson for
Jordan's legal advisors told China Daily he has not yet received notice from relevant authorities about
Qiaodan’s countersuit.
-- Jonathan Jordan
5
The Sports Lawyer
May 2013
National Collegiate Athletic Association
Boise State Seeks to Void Big East Penalty
On April 12, 2013, Boise State University
filed suit against the Big East Conference in
the Fourth Judicial District Court for the State
of Idaho for the purpose of voiding its exit
penalty. Boise State alleges that the Big East
Conference, which will soon become the
American Athletic Conference, is different
from the organization they originally intended
to join.
Boise State signed a memorandum of
understanding with the Big East on December
6, 2011, which stated that the Broncos would
join the conference as a football-only member
on July 1, 2013. Among the stipulations in the
memorandum was the requirement that Boise
State pay a $5 mil lion dollar exit fee to the Seeking to avoid the conference exit penalty, Boise State University
Big East should they decide to leave the claims that it worked diligently to help salvage the Big East.
conference prematurely. Boise State alleges in its claim, however, that the conference it intended to join
in good faith no longer exists. In support of this contention, the complaint emphasizes that the Big East
has lost eleven of its fourteen member institutions since the Broncos signed on in 2011, and that the Big
East lost its designation as an “automatic qualifier” conference for the purpose of BCS bowl games
during that same time period. Moreover, the complaint states that the “name, corporate status, image
rights and good will of the conference are in jeopardy due to the actual or anticipated departure of other
conferences members, present or former.” Accordingly, Boise State said that it delivered written notice
to the Big East that it no longer intended to join the conference, and would instead remain in the
Mountain West Conference. The university’s athletic director, Mark Coyle, said that while Boise State
worked diligently to help salvage the Big East, the losses the conference experienced are too great to
overcome. Boise State seeks a declaratory judgment that it does not owe the $5 million exit fee or any
other fees to the Big East.
“Boise State entered into that agreement in good faith and with a great degree of optimism, but the
conference we agreed to join simply no longer exists,” said Boise State president Bob Kustra. Boise
State is represented by Idaho-based attorney Steven Andersen of Andersen Banducci PLLC. Big East
commissioner Mike Aresco released a statement saying that the conference is “disappointed that Boise
State has gone to court to try to avoid the contractual obligation that it made to the conference to pay $5
million for refusing to join after committing to do so.” The date of the hearing has not been set.
-- Austin Priddy
6
The Sports Lawyer
May 2013
Major League Baseball
White Sox Owner and Former Illinois Governor Sued
On April 15, 2013, former executive Perri Irmer of
the Illinois Sports Facilities Authority (“ISFA”) sued
former Illinois governor Jim Thompson and White
Sox owner Jerry Reinsdorf in U.S. District Court for
the Northern District of Illinois in Chicago for
wrongful termination. Irmer alleges that in 2011,
Thompson and Reinsdorf plotted to terminate her
employment in reaction to various reforms enacted
during her tenure as executive of ISFA.
In 2004, Irmer began her employment at ISFA, the
agency responsible for the White Sox stadium U.S.
Cellular Field. Shortly after arriving at ISFA, Irmer
began making changes to improve the agency’s
finances and developing proposals to promote the
stadium’s use for special events to generate revenue.
Irmer alleges that in 2008, after she reached an
agreement with the White Sox for the team to pay
$1.2 million in annual rent to use the field, Reinsdorf
and Thompson began lobbying to have her
employment terminated.
Then in 2011, Irmer
opposed Thompson, Reinsdorf, and the board’s
decision to build an upscale restaurant, Bacardi at the
Park, located on state-owned land across from the
Jerry Reinsdorf, owner of the Chicago White Sox has been
accused of using his influence to get an employee fired
park. Irmer alleges that taxpayer’s money was used to
because of her opposition to his business decisions.
finance the restaurant, while the White Sox kept a
majority of the revenue. Irmer alleges Reinsdorf and Thompson used their influence to get her fired for
her opposition to their business decisions and her role in the team’s rent agreement. The suit claims
Irmer’s termination was an attempt to “stifle her efforts to protect Illinois taxpayers from Reinsdorf’s
greed.” Irmer seeks an unspecified amount of damages.
“This lawsuit is totally without merit. Other than that, we cannot comment any further pending
litigation,” said White Sox spokesman Scott Reifert. Irmer is represented by Carmen David Caruso of
the Carmen D. Caruso Law Firm in Chicago.
-- Aaron T. Brown
7
The Sports Lawyer
May 2013
High School Sports
Jury Finds Riddell Liable in Negligence Suit
On April 13, 2013, Rhett Ridolfi and his family
achieved a victory in their suit against helmet
manufacturer Riddell after a jury in the Las Animas
County District Court in Trinidad, Colorado found
the company negligent for its failure to adequately
warn about the potential dangers of concussions. The
jury awarded $11.5 million in total damages for the
high school football player’s concussion and found
Riddell responsible for twenty-seven percent of the
fault, amounting to $3.1 million.
In 2008, Ridolfi, now 22, was participating in a
“machine gun drill” during football practice at
Trinidad High School when he made helmet-tohelmet contact with a teammate. The impact resulted
in a concussion. According to the original complaint,
his coaches ignored his complaints of head pain and
allowed him to return to practice. Later that Helmet maker Riddell was found liable for injuries resulting
afternoon, Ridolfi collapsed and required immediate from helmet-to-helmet contact during a high school practice.
surgery to reduce the swelling and bleeding of his brain. He now has severe brain damage, walks with a
brace, and suffers paralysis on his left side. Ridolfi and his family alleged that Riddell produced a
defective helmet and that the company failed to inform the high school player about the risk of
concussions. However, the Colorado jury did not find the helmet to be a defective product and only
found Riddell’s warning label to be insufficient. Since 2008, Riddell has added a new warning label that
includes a more explicit mention of concussion related injuries. It is unclear how much, if any of the
total $11.5 million in damages have been assigned to the football coaches and school administrators also
named in the suit.
“I think this jury has said they're in very serious trouble," said Ridolfi’s attorney, Frank Azar of Frank D.
Azar and Associates in Denver. "While disappointed in the jury’s decision not to fully exonerate
Riddell, we are pleased the jury determined that Riddell’s helmet was not defective in any way,” the
company said in a statement. “We intend to appeal this verdict, and we remain steadfast in our belief
that Riddell designs and manufactures the most protective football headgear for the athlete.”
-- Jeff D. Karas
8
The Sports Lawyer
May 2013
Family Files Discrimination Lawsuit against Batavia Schools
On April 5, 2013, several high school softball players filed
a class action lawsuit against the Batavia City School
District (“School District”) in United States District Court
for the Western District of New York for unlawful sex
discrimination. The plaintiffs allege discrimination in
violation of Title IX and the Fourteenth Amendment of the
United States Constitution.
The softball players allege the School District discriminates
against them by “providing superior facilities and
equipment to the boys’ baseball program than it provides to
the girls’ softball program.” The students allege that while
the varsity baseball team plays its home games at a
professional minor league baseball stadium, the varsity
A girls’ softball team argues that the Batavia City
softball team plays its home games at a field that is “poorly
School District has discriminated against them by
maintained, hazardous, lacks outfield fencing, and has no
providing superior facilities to the boys’ baseball
program.
scoreboard, dugouts or stands.” Plaintiffs also allege
discrimination in the areas of scheduling, provision of equipment, and funding. The students seek
declaratory and injunctive relief against the School District.
“The conditions on the field definitely impairs our ability and level of play,” said one of the students.
The School District issued a statement saying that it has regularly upgraded the softball fields, but that a
2011 plan for improvements to the softball field failed in a referendum by city residents. The students
are represented by Kristin M. Small and Jonathan Feldman of the Empire Justice Center in Rochester,
New York.
-- Erin Gardner
9
The Sports Lawyer
May 2013
Sports Business
Fox Sports Executive Sues for Race Discrimination
On April 5, 2013, former Fox Sports executive
Jerry Davis filed suit against Fox Sports in the
Superior Court of California for Los Angeles
County for racial discrimination. Davis is suing
for unlawful discrimination based on race and
disability, retaliation and a failure to
accommodate disability, wrongful termination,
and intentional infliction of emotional distress.
Davis, who is African-American, claims that he
was passed over for promotion several times
during nearly sixteen years of employment at Fox
Sports because he is black. Hired in August 1997,
Davis served as a director in Fox Sports’ music
department. During his time at Fox Sports, the Fox Sports has been accused of racial discrimination due to the
over of Jerry Davis for promotion numerous times during
vice president position directly above Davis in the passing
his sixteen-year employment.
music department became vacant on four separate
occasions, but Davis never received a promotion. In his discrimination lawsuit, Davis states that he was
repeatedly rejected because, “as a black man, he did not fit neatly into the company’s corporate culture.”
Davis notes that to the best of his knowledge, no African-American has held a position as a vice
president or above in Fox Sports’ music department through the department’s nineteen-year existence.
Currently, Fox Sports employs thirty-four executives at or above the level of vice president, none of
whom is black. Davis claims that Fox Sports had reduced his responsibilities up until his discharge last
February while he was on disability leave.
“During the course of its existence, Fox Sports, through its various divisions and entities, has
intentionally maintained a practice of directly and indirectly favoring the hiring and/or promotion of
non-Black and non-minority employees at senior levels without any legitimate reason,” stated Davis in
his complaint. Davis is represented by Eliot Rushovich and Aanand Mehtani of the firm Rushovich
Mehtani LLP in Los Angeles. Fox Sports declined to comment on the suit. A hearing date has not been
set.
-- Joseph Nguyen
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The Sports Lawyer
May 2013
The Sports Lawyers Association
Officers
President: Anthony J. Agnone
Secretary: Peter Roisman
Treasurer: Ash Narayan
Director of Publications: Gabe Feldman
Immediate Past President: Robert Wallace, Jr.
Staff
Executive Director: Richard A. Guggolz
Deputy Executive Director: William M. Drohan, CAE
Program Manager: Melissa Pomerene
Administrative Assistant: Colleen MacCutcheon
Board of Directors
For a full list and biographies of all board members, please visit:
http://www.sportslaw.org
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