US judge approves NFL publicity rights settlement
A US judge has preliminarily approved a $50 million settlement agreement between the US National Football League (NFL) and a group of retired players seeking compensation for the use of their likeness in promotional materials.
The settlement agreement, which would end more than three years of litigation, was announced in March this year but has been opposed by some of the ex-players involved, including Fred Dryer of the Los Angeles Rams and Jim Marshall of the Minnesota Vikings.
In a preliminary approval order published Monday, 8 April, Judge Paul Magnuson of the US District Court of Minnesota accused the opposing players of acting like petulant children, adding that the likely complexity and expense of further litigation “weigh heavily in favour of the settlement”.
Six players—Elvin Bethea, Ed White, Joe Senser, Dan Pastorini, Marshall and Dryer—sued the NFL in 2009 for using their names, images and likenesses in advertisements that generated substantial revenue, including promotional videos made by NFL Films that were sold for $50 each.
The players said that while the league was entitled to use their likenesses when they were under contract, it had no right to once that contract had expired and by doing so, had violated US federal trademark law.
$8 million of the settlement fund will be used to create a licensing agency to market retired players’ publicity rights in conjunction with the NFL, which will make it easier for players to secure sponsorship and advertising deals.
The remaining $42 million will be handled by a group of former players and distributed to those whose likenesses were used without permission.
Michael Hausfeld, chairman at Hausfeld LLP, who represented some of the retired players, said the settlement is a historic agreement and “the beginning of a productive new relationship between the League and the people who made the game of football what it is today”.
But Dryer, Marshall and 21 other retired players said it is not good enough and that the compensation funds should be administered by a neutral third party. Magnuson dismissed these complaints.
“It is the height of disingenuousness for these same plaintiffs to now complain, like children denied dessert, that the settlement does not benefit the individuals who brought the lawsuit.
“The benefits of this settlement are plain: it will assist those who most need assistance, and will resolve the very problem that this lawsuit seeks to address by allowing former players true access to the value of their rights of publicity,” he said.
A final approval hearing is scheduled for September 19.
