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December 23rd, 2022
Key Sports Law Cases & Developments 2022
Sports Group Partner Christopher R. Chase speaks with LawInSport on the most important legal cases and developments from the world of sports law in 2022. Christopher contributes his thoughts on the implosion of the cryptocurrency exchange FTX:
“The implosion of cryptocurrency exchange FTX and its subsequent bankruptcy filing will likely change the structure and contractual obligations of both athlete endorsements and corporate sponsorships going forward. For example, several class action lawsuits have been filed against athletes and celebrities for their role in promoting FTX (as well as other crypto and NFT brands), arguing that such promotion was an unfair and deceptive practice under federal and state law – placing a spotlight on endorser liability. To avoid potential claims, athlete and celebrity endorsers should ensure that proper substantiation exists for any advertising claims that the endorser makes on behalf of a brand and that the endorser has a good faith belief in such advertising claims. While an indemnity from the advertiser for claims about its product is generally standard and protects an endorser from liability to some extent, it may not be worth much when the brand has little ability to back it up – so the athlete or celebrity endorser would be wise to consider the actual evidence for the advertising claims before agreeing to endorse the product or service.
Regarding sponsorships, the FTX situation is yet another cautionary tale for rights holders – particularly when entering into agreements with entities in nascent industries. Seeking more payments up-front (and in dollars!), limiting the length of the contractual term, expanding the ability to terminate, and seeking regular audits or reviews of financial statements from sponsors (particularly ones that do not have publicly available financial statements) are all considerations rights holders may want to take going forward. Now that FTX has filed for bankruptcy, rights holders have to file motions to have the court reject the sponsorship agreement or otherwise lift the automatic stay so that the rightsholder can terminate the agreement – both procedural and substantive situations in which rights holders do not want to be.”
See the full article here. (Behind paywall).
Other Quoted
A Federal Judge Ordered OpenAI to Stop Deleting Data
Daniel M. Goldberg is quoted in an Adweek article, which reported that a federal judge has ordered OpenAI to stop deleting output data from ChatGPT. This was part of The New York Times lawsuit, alleging OpenAI engaged in copyright infringement “by using ‘millions’ of articles published by the newspaper to train its AI model, which now directly competes with the Times’ content as a result.” The judge’s order seeks to preserve evidence in the Times’ case. Mr. Goldberg addressed mulitple implications of the order, which requires OpenAI to hold more data than they normally would. "That could make OpenAI more susceptible to security breaches, or shake the trust of consumers who expected their chatbot records to be deleted. There are also potential implications regarding energy use, storage and environmental impact that the judge may not have considered when making the order, Goldberg said." He also noted the order would trigger people's concerns about what it means for working with large tecnology providers.
May 21 2025
Democrat LaMonica McIver Charged: What Punishment Could She Face?
Jeremy Bates is quoted in a Newsweek article on New Jersey U.S. representative LaMonica McIver’s arrest by the Trump administration. She’s accused of allegedly assaulting, resisting, and impeding law enforcement officers in a protest against the arrest of Newark Mayor Ras Baraka. Amidst the chaos, Ms. McIver appears to have elbowed an officer. Mr. Bates told Newsweek,“‘Ethical prosecutors refrain from bringing charges that are not supported by probable cause. Here, the Mayor of Newark was charged with trespassing. Days later, DOJ dropped that charge. These facts do not inspire confidence.’” Mr. Bates also stated, “‘Before charging anyone with a federal crime, a DOJ lawyer should ask, would this prosecution be in the interest of my true client, the American people? Or is it an act of presidential malice?’” View Article
May 20 2025
In Suits and Ties, Lawyers Protest Trump’s Attacks on the Legal System
The New York Times quotes Ronald C. Minkoff in its coverage of the May 1, 2025 National Law Day of Action, in which approximately 1,500 people in Manhattan protested the U.S. president’s threats against judges, lawyers and the rule of law. Legal groups organized attorneys across the country to show their opposition to the Trump administration’s defiance of court orders, targeting of law firms, and wrongful deportations. The lawyers reaffirmed their promise to uphold the rule of law and recited the Pledge of Allegiance. Foley Square protest organizers requested that attorneys dress in suits—as if going to court and carry pocket Constitutions. “‘We want people to see that we treat this issue with utmost respect,’ said Ronald C. Minkoff, a defense lawyer and an organizer. ‘This is like the courtroom to us.’” View Article
May 1 2025
