DraftKings settles NFL union suit over NFT pay dispute
The National Football League Players Association (NFLPA) recently filed a lawsuit against DraftKings, one of the leading daily fantasy sports and sports betting companies in the United States. This legal action comes just a few weeks after DraftKings made the decision to shut down its non-fungible token (NFT) marketplace in July.
The NFLPA, which represents professional football players in the NFL, claims that DraftKings used the images and likenesses of its players without proper authorization or compensation. The lawsuit alleges that DraftKings violated the players’ rights of publicity and seeks damages for the unauthorized use of their identities.
This move by the NFLPA highlights the growing tension between professional sports leagues and companies that offer sports betting and fantasy sports services. With the rise of NFTs, which are unique digital assets that can represent ownership of a digital item, the use of player images and likenesses has become a hot topic in the sports industry.
DraftKings’ NFT marketplace, which launched in April, allowed users to buy, sell, and trade digital collectibles featuring NFL players. However, the marketplace was abruptly shut down in July, leaving many users and investors disappointed.
The NFLPA’s lawsuit is not the first time that DraftKings has faced legal action over the use of player images. In 2019, the company settled a similar lawsuit with former NFL player Richard Sherman for an undisclosed amount.
This latest lawsuit serves as a reminder that the use of player images and likenesses is a complex and sensitive issue, and companies must ensure they have proper authorization and compensation in place before using them. As the popularity of NFTs continues to grow, it is likely that we will see more legal battles over the use of player images and likenesses in the future.
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