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June 5, 2009
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NFLPA Settles Lawsuit Over Use Of Retired Players' Images

The NFLPA has agreed to settle a lawsuit in which the union was ordered to pay $28.1M over the use of their images in licensing and marketing, a union spokesman confirmed. “We hope this is a unifying moment,” said NFLPA spokesperson George Atallah. He did not provide details of the settlement. The NFLPA, especially under the leadership of the late Gene Upshaw, has been under fire from many retired players. New NFLPA Exec Dir DeMaurice Smith has been trying to reach out to the NFL retired player community (Liz Mullen, SportsBusiness Journal). ESPN.com's Chris Mortensen cited sources as saying that the NFLPA has agreed to pay the retired players near $26M, and "not pursue any further appeals of the judgment." NFLPA outside counsel Jeffrey Kessler, the union's lead attorney on the case, had "pledged an aggressive appeal of the verdict," but Smith has "taken steps to bring peace between the two sides" since taking office in March. Sources indicated that although Kessler was "not fully utilized in the settlement with the retired players, he will remain a vital member of the union's legal team that this week began talks to negotiate" a new CBA (ESPN.com, 6/4).

NEW STATE OF THE UNION: Smith said that beyond saving $2.1M by settling with the players instead of appealing the penalty, he "wanted to move toward a better partnership with retired players." In N.Y., Alan Schwarz notes the settlement will net the more than 2,000 players listed in the suit about $10,000 apiece after lawyers' fees, "half this year and the other half within two years" (N.Y. TIMES, 6/5). The AP's John Wawrow noted the settlement is the "first concrete sign of a thaw between" the NFLPA and retired players, and an "indication that Smith is prepared to chart a new course for a union that's entering a critical juncture." Attorney Ron Katz, who repped the players, said he and Herb Adderley, class representative for the retired players, both "believe that this is a historic first step in that direction." Katz added Smith "put his money where his mouth is." Adderley noted a "significant difference in dealing with the union now that Smith is in control" (AP, 6/4).


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