The NFL Players Association (NFLPA) has filed a civil suit in the Southern District of New York against DraftKings over an “anticipated breach of contract.”
the platform had been supported by a 2021 licensing agreement with the NFLPA
The lawsuit likely concerns DraftKings’ Reignmakers NFT marketplace, which was abruptly closed last month. The platform had been supported by a 2021 licensing agreement with the NFLPA allowing the use of intellectual property rights for all NFL players.
However, the precise nature of the case is not yet known, as the documents associated with the filing are not publicly available because the NFLPA’s attorney, David Greenspan, filed them under a seal.
DraftKings quickly closed the marketplace at the end of last month after encountering legal troubles when a class action lawsuit was brought against it in the Massachusetts District Court in March 2023. A judge denied DraftKings’ motion to dismiss the lawsuit last month, which claims that the NFTs in the Reignmakers marketplace are investments and should be classed as securities under federal law.
At the time of the closure, DraftKings stated: “After careful consideration, DraftKings has decided to discontinue Reignmakers and our NFT marketplace, effective immediately, due to recent legal developments. This decision was not made lightly, and we believe it is the right course of action.”
Neither DraftKings nor the NFLPA have commented on the lawsuit so far.
