On November 14, the American football star’s attorney, Daniel Davillier, filed a lawsuit against Nike saying the company deliberately withheld money based on alleged technical violations of the two parties’ agreement via the footwear and gloves the player used in games.
According to TMZ, the controversy has its roots in 2017 when OBJ’s original deal with Nike approached its expiration date and the player received a considerable offer from Adidas, arguably the Swoosh’s major competitor.
Apparently, Adidas offered OBJ an endorsement contract that included up to $47M in guaranteed extensions, at the same time providing an upfront payment, a yearly base salary and royalties. However, after hearing of the Adidas offer, the Oregon company exercised their right of first refusal, allowing the company to match the competitor’s deal, this way renewing the agreement until June 30, 2022 with right of extension.
“Now, five years later, Nike is refusing to honor the deal it agreed to. Rather than continuing to pay the compensation and guaranteed royalties it is contractually obligated to pay Mr. Beckham, Nike is deliberately withholding millions of dollars and inventing excuses not to pay him”, the complaint reads.
Apparently the first discrepancy in the relationship between the two parties was raised in March 2022 when the company withheld little more than $2M from a due payment of approximately $2.6M. The reason why the athlete did not receive such amount is to be found in equipment alterations, more specifically footwear and gloves violations.
However, this seems to be not the first violation throughout the several seasons played by OBJ, yet the company never had issues with that. Furthermore, the plaintiff argues he did not commit any violations since the alterations are entirely Nike’s fault, which failed to provide him with footwear and gloves properly matching its team color, hence forcing him to customize his cleats in the way he felt to be the most appropriate.
That said, the athlete claims that he has suffered over $2OM in damages, believing the Oregon company invented the penalties in order to force him to sign a less profitable agreement with them.
Odell publicly tweeted his opinion on the matter, stating, “Today, I’m taking a stand not just for me, but to set a precedent for all athletes who have dedicated their life to the sport they love—especially those who don’t have the means to stand up for themselves. We are held responsible for fulfilling our obligations under our contracts, but we also have to hold powerful companies like Nike accountable for honoring their commitments too. I look forward to resolving this issue and hope we can start a real conversation about protecting athletes and their rights. This happens too often in the sports industry and it’s time for change. As this is now a legal matter, please refer any questions to my attorney, Daniel Davillier.”
Now, it is up to the Oregon judge to make a decision. Will they find reasonable grounds for a breach of contract, and therefore proceed with the lawsuit, or dismiss the case?
