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Labor and Agents

NFL free agents see results of bigger cap, spending rules

Three agencies — CAA Sports, Relativity Sports and Rosenhaus Sports — have each negotiated more than $300 million in NFL contracts with more than $100 million in guaranteed money during the offseason so far this year.

CAA Sports negotiated $328.5 million worth of deals, $127.4 million of that guaranteed, for 19 players. The deals include the $114 million, six-year deal defensive tackle Ndamukong Suh signed with the Miami Dolphins in March and the $660,000 non-guaranteed, one-year deal quarterback Tim Tebow signed with the Philadelphia Eagles last week.

Relativity Sports has negotiated $304 million in deals with $151.05 million guaranteed for 21 players, including defensive end Jerry Hughes’ five-year, $50 million deal with $22.15 million guaranteed to re-sign with the Buffalo Bills earlier this year.

Rosenhaus Sports negotiated $308 million worth of deals, $137 million of it guaranteed, including free agent deals and extensions for 34 players. The deals include a five-year, $40 million deal with $26.5 million guaranteed for running back LeSean McCoy of the Buffalo Bills in early March and a $48 million deal — $21 million of it guaranteed — on a four-year extension negotiated with the Baltimore Ravens last week for cornerback Jimmy Smith.

“This has been a great year for free agency,” Drew Rosenshaus wrote in a text. “There was more cap room available and teams were spending more than in previous years. The CBA is really starting to have a positive impact on free agency, and negotiations in general, with the higher cap and teams’ minimum spending requirements.”

This year, the NFL salary cap is at $143.8 million, the highest it has ever been and up from $133 million a year ago. In addition, clubs were entering the third year of a four-year period in which they were required to spend 89 percent of the cap.

Several agents said the higher cap and the pressure on teams to spend helped players in getting free agency and extension deals.

“We feel really good about how free agency panned out,” said Kenny Zuckerman, NFL agent and Priority Sports & Entertainment president of athlete representation. “We don’t have as many clients as some of the large conglomerates, but we negotiated a bunch of big contracts.”

Priority Sports & Entertainment negotiated $173.23 million in deals with $58.075 million guaranteed for 25 players, including a four-year, $24.5 million deal with $10 million guaranteed for cornerback Davon House to play for the Jacksonville Jaguars and a five-year, $22.5 million deal with $9 million guaranteed for linebacker Brooks Reed to play for the Atlanta Falcons.

Other agencies with big NFL free agency and extension totals include Lagardère Unlimited, which negotiated $205.29 million in deals with $101.18 million guaranteed, and SportsTrust Advisors, which negotiated $141.85 million in deals with $45.4 million guaranteed.

> DEZ BRYANT COMPANY SUES MARKETER: A company owned by Dez Bryant has filed a lawsuit against Official Brands Inc. seeking a court order to stop the company from selling products using the wide receiver’s name, likeness and nicknames, including the “Throw Up the X” signature move he makes after scoring touchdowns.

A company owned by Dez Bryant is suing his former marketing firm. 
Photo by: GETTY IMAGES

The lawsuit, filed in District Court in Travis County, Texas, by Bryant’s company, Dez I Enterprises Inc., also is seeking damages of at least $2 million and a cease-and-desist order to prevent Official Brands from using any trademarks or social media accounts that refer to Bryant’s name or likeness.

Dez Enterprises entered into an endorsement agreement with Official Brands in July 2014, two years after meeting its principal, Ryan Totka, who asked Bryant whether he had marketing representation, according to the lawsuit. The lawsuit alleges that Official Brands breached the terms of the contract in a number of ways, including failure to obtain Bryant’s approval of products and product design, failure to pay all necessary royalties to Bryant, and failure to render proper royalty accounting statements containing all required information.

“The allegations, much like the plaintiff’s claim that the court even has jurisdiction over the matter, lack any true basis,” said Darren Heitner, attorney for Official Brands, in an email in response to questions. “Whatever demands being made are unjust. My client was instrumental in building Dez’s brand and is the real injured party in this dispute.” Official Brands’ principal, identified in the complaint, is Totka. 

The case was filed in March, but a hearing is set for today on Official Brands’ motions to dismiss the case or transfer to another venue. 

Meanwhile last week, Official Brands filed a lawsuit against Roc Nation and Roc Nation Sports, alleging the agencies engaged in tortious interference with Totka’s relationship with Bryant and seeking unspecified actual and exemplary damages, among other things. Roc Nation, which represents Bryant with CAA Sports, had no comment on the Official Brands lawsuit, which was filed in the District Court of Dallas County, Texas. 

On the lawsuit filed by Bryant’s company against Official Brands, Heitner said, “Put simply, the agreement requires mediation prior to filing a lawsuit. Furthermore, neither party has any connection to Travis County, where the lawsuit was filed.”

But Brad Rose, an attorney with Pryor Cashman who is representing Dez Enterprises in the case, said that he requested mediation before and after Official Brands filed the motion and that the venue is appropriate under the terms of the agreement. Rose said either party has the right to terminate the contract with 60 days’ notice, which Bryant’s company did on Feb. 24.

“Defendant’s counsel apparently has not read the complaint or the letter sent back to defendant and his counsel back in February wherein mediation was requested and they flat-out failed to respond to the request,” Rose said. “The agreement is terminable for cause and/or on 60 days’ prior notice, so whatever defendant perceives that it has done for Mr. Bryant is, at a minimum, irrelevant since Mr. Bryant has the absolute contractual right to terminate the relationship, which he has done.”

> EBMG SIGNS OLYMPIANS: Ella Bee Media Group, a management, marketing and public relations agency, has signed three gold-medal-winning Olympians for representation, including Paralympian Jeremy Campbell, who has won a total of three gold medals in pentathlon and discus.

Los Angeles-based EBMG also signed Courtney Mathewson, a member of the U.S. women’s water polo team that won a gold medal in 2012, and Esther Lofgren, a member of the U.S. rowing women’s eight team, which also captured gold in London.

All three will be represented by EBMG athlete managers Lila Brown and Richard Thorpe. None of the athletes was previously represented.

Liz Mullen can by reached at lmullen@sportsbusinessjournal.com. Follow her on Twitter @SBJLizMullen.


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