The NFL Players Association (NFLPA) filed a civil suit in Southern District of New York yesterday (20 August).
The NFL players labour union are seeking damages for an “anticipated breach of contract”.
It follows DraftKings announcing it would be shutting down its Reignmakers NFT product at the end of last month, which allowed users to purchase NFTs to compete in DFS-style contests.
The platform was supported by a 2021 NFLPA agreement that saw DraftKings provided with the intellectual property rights licensing to all NFL players.
The documents are not yet publicly available, with the NFLPA’s attorney seeking a court order to file them under seal.
Co-chair of Winston & Strawn LLP’s sports practice David Greenspan is named on the case’s cover sheet as the NFLPA’s attorney.
The documents include unredacted and redacted complaints from the union.
Other filings include exhibits titled “Licence Agreement”, “Amended Licence Agreement”, “Unredacted Termination Letter” and “Redacted Termination Letter”.
The docket also features a Proposed Order Granting Leave to File Redacted Complaint and Exhibit Under Seal.
NEXT.io has reached out to both the NFLPA and DraftKings for comment.
DraftKings shuts down NFT marketplace
The Massachusetts District Court denied DraftKings’ Motion Dismiss in a class action lawsuit brought against it in July.
The case, which is still proceeding through the courts, sees the operator defend allegations it is operating an NFT marketplace which de-facto amounts to unregistered securities.
A DraftKings spokesperson said at the time: “It has always been in DraftKings’ DNA to innovate and disrupt in order to provide the best possible gameplay experiences for our customers.
“Reignmakers and our NFT marketplace saw immediate success upon launch, and we are proud of what we accomplished in such a short time.
“After careful consideration, DraftKings has decided to discontinue Reignmakers and our NFT marketplace, effective immediately, due to recent legal developments.
“This decision was not made lightly, and we believe it is the right course of action.
DraftKings has a separate agreement with the NFL itself, which sees the operator act as one of the league’s three Official Sports Betting Partners.