The NFL Players Association is suing DraftKings, claiming the company owes nearly $65M for unpaid obligations related to its defunct NFT fantasy game
The NFLPA’s lawsuit points out that DraftKings executives received $261M in compensation since 2021, roughly four times the amount the union claims it’s owed
Licensing Dispute: The dispute involves a licensing agreement allowing DraftKings to use NFL players' likenesses in its Reignmakers NFT product. DraftKings ended the agreement after closing the Reignmakers platform last month.
Legal Background: The shutdown followed a legal setback for DraftKings, as a Massachusetts federal court denied the company’s motion to dismiss a class-action lawsuit claiming the NFTs were unregistered securities.
Termination Clause: DraftKings claims a clause lets them exit if regulators deem NFTs as securities. The NFLPA disagrees, saying market conditions and regret don’t excuse DraftKings from their obligations.
Financial Context: The NFLPA’s lawsuit points out that DraftKings executives received $261M in compensation since 2021, roughly four times the amount the union claims it’s owed.
