FanDuel has signed a new partnership with the MLB Players Association that allows the operator to use NIL info in marketing.
In a new collaboration that could reshape the online sports betting market, MLB Players, Inc., the for-profit subsidiary of the Major League Baseball Players Association (MLBPA), has partnered with FanDuel and OneTeam Partners in a new licensing deal.
This agreement, which focuses on product and marketing initiatives, allows FanDuel to expand its use of MLB player intellectual property (IP) across its sportsbook platforms in the U.S. and Canada.
The agreement, effective sometime next year, empowers FanDuel to introduce player-focused features to its online sportsbook. It will continue utilizing player rights within its current offerings while integrating MLB player IP into broader campaigns and experiences.
This move aims to enhance engagement by bringing fans closer to their favorite athletes through customized betting opportunities and marketing strategies, according to a FanDuel press release.
Tony Clark, Executive Director of the MLBPA, emphasized the value of this partnership in advancing the association’s licensing objectives. He noted that the collaboration builds on MLBPA’s efforts to diversify revenue streams, leveraging group licensing rights to create meaningful opportunities for players.
The deal was facilitated by OneTeam Partners, a company focused on group licensing rights for professional athletes. Established in 2019 as a joint venture involving multiple players’ associations, such as the MLBPA, the NFL Players Association and others, OneTeam specializes in sports licensing, marketing, sponsorships, and media.
Its president, Frank Arthofer, highlighted that the partnership underscores the company’s commitment to maximizing the commercial potential of MLB players within the sports betting industry. By collaborating with FanDuel, OneTeam seeks to establish new benchmarks for integrating player IP into online sportsbook platforms, benefiting players, fans, and the betting community.
Agreement emerges amid legal wrangling
The announcement comes against the backdrop of recent legal disputes involving MLB Players, Inc. and major sports betting platforms. On September 16, the MLBPA filed lawsuits against FanDuel and Underdog Sports, alleging unauthorized use of player names, images, and likenesses.
Two separate complaints were filed, one each in New York and Pennsylvania. They alleged that the sportsbooks engaged in the “intentional and unauthorized use” of MLB player images for commercial gain without obtaining the necessary licenses or permissions from MLB Players, Inc. (MLBPI).
The organization contends that starting in early 2024, these companies prominently displayed images of nearly all active MLB players across their websites and mobile apps. MLBPI asserts that this usage extends beyond informational purposes, claiming the images are being used to promote and market the companies’ services.
The case involving FanDuel was moved to U.S. District Court in Manhattan in October. However, both parties filed for a voluntary dismissal in November, which was approved by Judge Ronnie Abrams.
The legal proceedings against Underdog Sports remain active. Additionally, separate lawsuits filed against DraftKings and bet365 are pending in federal court in Philadelphia.
Strategic Implications
This new licensing agreement highlights a turning point in the relationship between MLB Players, Inc., and sports betting operators like FanDuel. The collaboration not only resolves existing disputes but also paves the way for mutually beneficial initiatives that align player interests with industry growth.
By proactively engaging with platforms like FanDuel, the MLBPA and its partners demonstrate a forward-thinking approach to navigating the evolving sports betting industry. Leveraging player IP allows operators like FanDuel and its partners to create immersive experiences that bring fans closer to the action while ensuring players are appropriately represented and compensated.