The Nationwide Soccer League Gamers Affiliation (NFLPA) has filed a lawsuit in opposition to DraftKings, one of many NFL’s official betting companions, for breach of contract.
The authorized dispute stems from DraftKings’ current determination to close down its non-fungible token (NFT) market, a transfer that the NFLPA claims violates an settlement between the 2 events.
The lawsuit was filed on August 26 in federal court docket within the Southern District of New York. The NFLPA argues that DraftKings is making an attempt to terminate a 2021 contract that granted the corporate the rights to make use of gamers’ names, photos, and likenesses for its now-closed NFT market.
In line with the NFLPA, DraftKings nonetheless owes the affiliation round $65 million in assured funds and is making an attempt to keep away from these funds by shutting down {the marketplace}.
DraftKings formally introduced the shutdown of its Reignmakers NFT sport and market on the finish of July, following a market downturn and a authorized setback by which the corporate is being sued by NFT consumers for allegedly promoting unregistered securities.
The lawsuit notes that the as soon as “white-hot” NFT market has cooled considerably, however argues that monetary losses don’t justify breaking a contract.
It additionally emphasizes that “buyers’ remorse is not a basis to terminate a contract,” and that DraftKings continues to be obligated to fulfill its monetary commitments beneath the settlement.
The lawsuit additionally factors out that whereas DraftKings is claiming monetary difficulties within the NFT house, prime executives on the firm have obtained substantial earnings for the reason that contract was signed. The swimsuit claims that since 2021, DraftKings executives have earned a complete of $261.1 million, which is over 4 instances the quantity the NFLPA says it’s owed.
