DraftKings and NFLPA reach settlement related to NFL player likeness
A deal was agreed between the pair in 2021 for a gaming NFT launch.
Key Points
- Initial contract between pair gave DraftKings licensing rights for active NFL players
- NFLPA claimed in August last year that DraftKings owed approximately $65m
The National Football League Players Association (NFLPA) and DraftKings have come to a settlement related to a lawsuit brought forward over an NFT contract.
In December 2021, the pair announced plans to collaborate on a gaming NFT launch, which granted DraftKings licensing rights for active NFL players, including the authentic use of name, image and likeness to use in the games.
The NFLPA alleged that the operator had threatened to stop offering the NFTs in 2023, before there was a restructuring to the contract.
DraftKings in July last year then posted an update on its website saying it was discontinuing Reignmakers and its NFT Marketplace, making the decision to do so because of “recent legal developments.”
As a result, the NFLPA sued DraftKings in August 2024 for a breach of the pair’s contract, claiming that approximately $65m was owed to them.
However, according to a letter sent to Judge Analisa Torres, the NFLPA and DraftKings have reached a non-binding settlement in principle regarding the matter.
Good to know: DraftKings faced a separate NFT legal case last year
Within the letter it reads: “The parties in the above-captioned action respectfully submit this joint motion for a 60-day stay of this action, until March 28, 2025.
“The parties have mediated their dispute and reached a non-binding settlement in principle, subject to the mutual execution of a definitive settlement agreement. The parties therefore respectfully request a 60-day stay of this action (including a stay on a decision on Defendants’ pending motion to dismiss, see Dkt. 31) to enable the parties to execute a definitive settlement agreement.”
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