{"id":440977,"date":"2024-08-29T01:30:02","date_gmt":"2024-08-29T00:30:02","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=440977"},"modified":"2024-08-29T01:13:20","modified_gmt":"2024-08-29T00:13:20","slug":"nfl-players-association-sues-draftkings-for-65m-over-reignmakers-nft-dispute","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/nfl-players-association-sues-draftkings-for-65m-over-reignmakers-nft-dispute\/","title":{"rendered":"NFL Players Association sues DraftKings for $65M over Reignmakers NFT dispute"},"content":{"rendered":"<p>The National Football League Players Association (NFLPA) has filed a lawsuit against DraftKings Inc., seeking approximately $65 million in damages after the sports betting company abruptly shut down its <a href=\"https:\/\/cryptoslate.com\/nfl-players-union-unable-to-collect-41-8m-in-nft-related-revenue\/\">NFT-based fantasy sports platform<\/a>, Reignmakers.<\/p>\n<p>The lawsuit, filed in the US District Court for the Southern District of New York, alleges that DraftKings breached its licensing agreement with the NFLPA by terminating payments owed under the contract.<\/p>\n<p>The agreement allowed DraftKings to use the likenesses of NFL players in Reignmakers, which enabled users to purchase, trade, and use non-fungible tokens (NFTs) linked to professional athletes in fantasy sports contests.<\/p>\n<p>DraftKings closed Reignmakers in July, citing &#8220;<a href=\"https:\/\/cryptoslate.com\/songadaymann-sues-sec-after-using-nfts-to-sell-songs-he-writes-every-day\/\">recent legal developments<\/a>&#8221; as the reason for its decision. This action followed a ruling in Massachusetts federal court that denied DraftKings' motion to dismiss a class-action lawsuit alleging that the NFTs sold on the platform constituted unregistered securities.<\/p>\n<p>The NFLPA argues that the $65 million owed is based on minimum guarantees specified in the contract, which DraftKings allegedly failed to meet.<\/p>\n<p>According to the complaint, the company has not made any payments since August 1, 2024, despite previous obligations.\u00a0The NFLPA claims that DraftKings' decision to halt payments is driven by the downturn in the NFT market, which has significantly cooled since the heights of its popularity.<\/p>\n<p>DraftKings justified its decision by referencing a clause in the contract that allows termination if a &#8220;government, regulatory, or adjudicatory body&#8221; determines that the NFTs are securities.\u00a0However, the NFLPA contends that the court ruling in Massachusetts did not definitively categorize the NFTs as securities, and therefore, the contract remains valid.<\/p>\n<p>The lawsuit also highlights the substantial compensation received by DraftKings executives \u2014 over $261 million collectively since 2021 \u2014 arguing that this figure is roughly 4x what the company owes the NFLPA under the licensing agreement.<\/p>\n<p>The case has been assigned to US District Judge Analisa Torres, who has experience with cases involving digital assets. Her rulings could have broader implications for the legal treatment of NFTs and other digital collectibles, an area still fraught with legal ambiguity.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The National Football League Players Association (NFLPA) has filed a lawsuit against DraftKings Inc., seeking approximately $65 million in damages after the sports betting company abruptly shut down its NFT-based fantasy sports platform, Reignmakers. The lawsuit, filed in the US District Court for the Southern District of New York, alleges that DraftKings breached its licensing [&hellip;]<\/p>\n","protected":false},"author":1250,"featured_media":441053,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[77968,60793,76232,77489],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>NFL Players Association sues DraftKings for $65M over Reignmakers NFT dispute<\/title>\n<meta name=\"description\" content=\"The NFLPA has filed a lawsuit against DraftKings over an alleged breach of contract and is seeking $65 million in damages.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/nfl-players-association-sues-draftkings-for-65m-over-reignmakers-nft-dispute\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NFL Players Association sues DraftKings for $65M over Reignmakers NFT dispute\" \/>\n<meta property=\"og:description\" content=\"The NFLPA has filed a lawsuit against DraftKings over an alleged breach of contract and is seeking $65 million in damages.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/nfl-players-association-sues-draftkings-for-65m-over-reignmakers-nft-dispute\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2024-08-29T00:30:02+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-08-29T00:13:20+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/08\/nfl-nft.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Assad Jafri\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Assad Jafri\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/nfl-players-association-sues-draftkings-for-65m-over-reignmakers-nft-dispute\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/nfl-players-association-sues-draftkings-for-65m-over-reignmakers-nft-dispute\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/assad-jafri\/#person\",\"name\":\"Assad Jafri\",\"url\":\"https:\/\/cryptoslate.com\/author\/assad-jafri\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/assad-jafri\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/assad-jafri\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/02\/cs-syed.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/02\/cs-syed.jpg\",\"caption\":\"Assad Jafri\"},\"jobTitle\":\"Former Editor & Reporter\",\"description\":\"AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. 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