NIL

The High Stakes of NILs

In a legal clash between MLB Players Inc. (MLBPI) and sports betting companies, DraftKings and bet365, the US District Court for the Eastern District of Pennsylvania denied the defendants’ motions to dismiss. This case centers on the alleged unauthorized use of MLB Players’ names, images, and likenesses (NILs) by these sports betting companies, underscoring the […]

Published

1 month ago

April 11, 2025

Your Sports Nation

This case centers on the alleged unauthorized use of MLB Players’ names, images, and likenesses (NILs) by these sports betting companies, underscoring the intricate balance between protecting players’ rights and permissible uses under the law of player’s NILs in the sports betting industry.

Background

MLBPI is a subsidiary of the MLB Players Association, the collective bargaining union for MLB players. The Players Association assigned MLBPI the exclusive rights to use, license, or sublicense the NILs of MLB players for commercial purposes. In 2024, DraftKings and bet365 began using MLB players’ NILs on their sportsbook platforms and social media accounts allegedly in violation of the players’ rights. In many instances, the defendants would feature player headshots on their apps or feature an image of a player on a social media post with a piece of sports reporting followed by an ad for consumers to place bets.

In response, MLBPI filed a lawsuit against the defendants alleging violations of the MLB players’ rights of publicity and privacy under both Pennsylvania statutory and common law asserting unauthorized use of a person’s NIL for a commercial or advertising purpose. As the assignee of MLB players’ NIL rights, MLBPI asserts that it is entitled to prevent any unauthorized use and recover damages for any harm caused. Furthermore, MLPBI alleges that the defendants have been unjustly enriched by benefitting from the MLB players’ NILs without compensating the MLBPI for such use. DraftKings and bet365 countered with a motion to dismiss, primarily arguing (1) that MLBPI lacked standing or failed to sufficiently allege the elements of each claim and (2) that their use of NILs was protected under the news reporting exception and the First Amendment.

Decision

In a 54-page ruling on the defendants’ Motion to Dismiss, Judge Karen Marston rejected the defendants’ first argument, holding that MLBPI is a proper plaintiff and had sufficiently pleaded each claim at this early stage – a stage that requires the Court to assume all facts alleged by MLBPI are true. The court also affirmed that rights of publicity are transferrable, echoing other courts which previously held the same. Therefore, based on the facts as plead, MLBPI had standing to enforce the rights assigned to them by the Players Association. Further, the court also discussed the nature of the MLBPI’s group license rights, which allow authorized entities to use the NILs of three or more players and which the court explained has value different from an individual player’s NIL.

However, the court dismissed MLBPI’s right of privacy claim, as duplicative of the right of publicity claim. In doing so, the court clarified the nuanced distinctions between the right of privacy and the right of publicity, particularly in the context of NILs. In Pennsylvania, the misappropriation of NILs involves two scenarios: one involving private individuals who are unwillingly exposed to public scrutiny (a privacy issue) and the other involving public figures whose commercial value has been exploited without compensation (a right of publicity issue). Here, in MLBPI’s owns words, it was not suing “to protect MLB players’ personal privacy interest, but rather the commercial value of their NIL rights.”[1]

Noting a dearth of caselaw interpreting the issue, the court refused to rule on the defendants’ second argument, holding it is premature to determine whether the defendants’ use of the MLB players’ NILs on sports betting websites and social media posts qualifies as news reporting or presentation under the public interest exception. But the court read the statute narrowly and declined at this time to find that the public interest exception also includes subject matter that is “newsworthy,” as the exceptions for a news report and the exception for “newsworthy” information are distinct. However, due to the nuances regarding the news reporting exception, the court found it a close call at the pleading stage to ascertain whether displaying headshots with betting odds constitutes news or sports reporting, or if it is regarded as promotion or advertisement of sports betting products or services. In regard to the defendants’ First Amendment argument, the court acknowledged that balancing the right of publicity and First Amendment protections requires a complex analysis of many factors, including the nature of the precise information conveyed, the context, the public’s interest in the information, among other factors. Given the need for a thorough examination of these factors, the court declined to engage in such an analysis until the completion of discovery. Therefore, the court declined to dismiss the plaintiff’s claims based on First Amendment grounds.

The defendants have apprised the court that they plan to seek permission to appeal the ruling (note that in Federal Court, preliminary decisions are often not appealable immediately).

Takeaways

The court’s ruling allows the case to proceed to discovery and demonstrates the gray areas in the use of players’ names, images and likeness. Importantly, if the case proceeds to summary judgment or trial, it could set precedent and provide much-needed guidance for the growing sports betting industry. An ultimate decision by the court could, like the important NIL cases before it in the fantasy sports space, also influence future use of athletes’ name, images, and likenesses for other commercial purposes. [2]

This case may have significant implications for both the sports betting industry and players alike with respect to the use of social media. However, companies should continue to be mindful of potential legal boundaries and limitations governing the use of NILs in association with promoting and advertising their products and services and adapt their strategies to align with the changing legal landscape at the intersection of sports business and NIL..

[1] MLB Players Inc. v. DraftKings, Inc., No. 24-4884-KSM (E.D. Pa. Mar. 17, 2025) (quoting Plaintiff MLB Players Inc.’s Opposition to Defendants’ Motions to Dismiss filed Dec. 23, 2024)

[2] Daniels v. FanDuel, Inc., 109 N.E.3d 390 (Ind. 2018); C.B.C. Dist. & Mktg., Inc. v. Major League Baseball Adv. Media, 505 F.3d 818 (8th Cir. 2007)

NIL

NIL drama heats up as Nick Saban warns college football faces bidding war for talent and fairness hangs in the balance

The NIL Conundrum: A Tug of War Over Talent and Equity In the world of college sports, a seismic shift occurred in July 2021 with the introduction of Name, Image, and Likeness (NIL) rules, fundamentally altering the landscape of collegiate athletics. This change, monumental in its scope, has ushered in an era of both opportunity […]

Published

13 minutes ago

May 19, 2025

Your Sports Nation

The NIL Conundrum: A Tug of War Over Talent and Equity

In the world of college sports, a seismic shift occurred in July 2021 with the introduction of Name, Image, and Likeness (NIL) rules, fundamentally altering the landscape of collegiate athletics. This change, monumental in its scope, has ushered in an era of both opportunity and uncertainty. At the heart of the ensuing debate stands a towering figure, Nick Saban, whose voice resonates with authority and concern over the future of college football.

A Visionary’s Warning

Nick Saban, a name synonymous with success in college football, has emerged as a vocal critic of the potential pitfalls associated with the NIL rules. His apprehensions are not unfounded; the specter of college football transforming into an outright bidding war for talent looms large. Saban’s perspective is rooted in a deep understanding of the game and its intricacies. His cautionary stance highlights a critical question: Can the essence of collegiate sports be preserved amid the burgeoning influence of financial incentives?

The Heart of the Matter

The crux of the debate centers around fairness and equity. The NIL rules, while designed to empower student-athletes by allowing them to profit from their name, image, and likeness, also open the door to unprecedented challenges. The fear is that wealthier programs could leverage their financial clout to attract top talent, thereby skewing the competitive balance that is a hallmark of college sports. This potential shift towards a pay-to-play model threatens to undermine the principles of amateurism and equal opportunity that have long defined the collegiate athletic experience.

A Delicate Balance

The introduction of NIL rules represents a watershed moment, offering student-athletes newfound freedoms and opportunities. Yet, it also necessitates a delicate balancing act. Ensuring that the pursuit of financial gain does not eclipse the educational and developmental objectives of college sports is paramount. The challenge lies in crafting a framework that safeguards the interests of all stakeholders—athletes, institutions, and fans alike—while maintaining the integrity of the games.

The Road Ahead

As the landscape of college sports continues to evolve in the wake of NIL rules, the dialogue spearheaded by figures like Nick Saban is crucial. The conversation must navigate the complexities of fairness, equity, and the preservation of the collegiate sports ethos. Finding a middle ground that honors the spirit of competition while embracing the modern realities of athlete compensation will be key to shaping the future of college football.

A Reflection on Values and Vision

The ongoing debate over NIL rules and their impact on college football transcends the immediate concerns of recruitment and competition. It touches upon deeper questions about the values that underpin collegiate sports and the vision for their future. As the discourse unfolds, the insights of seasoned leaders like Nick Saban offer a guiding light. The path forward requires a collective commitment to fairness, integrity, and the enduring principles that have made college sports a cherished tradition. In navigating these uncharted waters, the goal must be to uphold the legacy of collegiate athletics while adapting to the changing times with grace and foresight.

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It’s time to give Iowa head coach Kirk Ferentz his flowers

In a college football world driven by NIL, the transfer portal, and an ever-changing College Football Playoff landscape, constants and consistency are words that seem to have less to do with the sport ever year. The exception is Kirk Ferentz and Iowa Football. Ferentz will turn 70 years old in August and kick off his […]

Published

1 hour ago

May 19, 2025

Your Sports Nation

The exception is Kirk Ferentz and Iowa Football.

Ferentz will turn 70 years old in August and kick off his 27th season at the helm of Hawkeye football just a few weeks later. Both his age and longevity are rarities in today’s game, and that longevity does not happen without a certain level of consistent success.

It’s time for us as college football fans to collectively recognize and respect what Kirk Ferentz has done.

Ferentz took over Iowa football in 1999. Bill Clinton was still in office. If you’re keeping score, we’ve had five different presidents and six different presidencies during Ferentz’s tenure in Iowa City. That alone is a solid bar room conversation starter.

In terms of actual coaching accolades, Kirk Ferentz has three Big Ten division titles and two Big Ten conference championships to his name. He was the AP and Walter Camp National Coach of the Year in 2002 and won the Bobby Dodd, Eddie Robinson, and Woody Hayes National Coach of the Year awards in 2015.

He has also won the Big Ten Coach of the Year award four times.

Ferentz has only had three losing seasons during his 26 years as Iowa’s head coach, and one of those was a result of losing a bowl game to finish with a 6-7 record. When you take out the shortened Covid season of 2020, Iowa averages just shy of 8 wins a season during his tenure. That would be an impressive run for an entire program over that span, let alone a single head coach.

Perhaps his most impressive accomplishment is turning Iowa football into an NFL factory despite its geographic recruiting advantages. Ferentz, his staff, and his system have mastered the art of player development. There are currently 38 former Iowa players on NFL rosters or in NFL camps. Of those 38 players, 20 of them were 3-star recruits according to 247 Sports. Four of them were 2-stars.

Iowa football rarely beats itself on Saturday. Instead, they sit back and wait for opponents to make a mistake. More often than not, the Hawkeyes jump all over that mistake in the form of one big play that turns the tide in their favor.

Kirk Ferentz has given Iowa football and its fans an identity. They are the model of consistency and toughness in college football. They know exactly who they are, and in a world of coaching carousels, you can’t put a price tag on that.

There will be a lot of questions about coaches, teams, players, and playoffs when the 2025 college football season kicks off this August. Thanks to Kirk Ferentz, there will be few questions from anyone about what to expect from a football standpoint in Iowa City, IA.

For us college football purists and old souls, Kirk Ferentz is the last remaining relic from the game we fell in love with. It’s time for the collective college football watching nation to acknowledge and respect what he has done before he leaves the sport.`

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NIL

2025 NCAA Softball Tournament: Super Regional matchups officially set

The first stage of the NCAA Tournament has concluded, and we are one step closer to crowning a champion of college softball. Following an exciting Regional round this weekend, the Super Regionals are set. The second stage of the tournament will feature eight best of three series between Regional champions. These matchups will begin play […]

Published

2 hours ago

May 19, 2025

Your Sports Nation

The second stage of the tournament will feature eight best of three series between Regional champions. These matchups will begin play on May 22 and conclude on May 26, if a game three is necessary. The winners of these two cities will meet in Oklahoma City at the 2025 Women’s College World Series later this month.

One of the biggest storylines to follow coming into the tournament is whether or not Patty Gasso and the Oklahoma Sooners can win a fifth-straight NCAA Championship. In their first-year in the SEC, they won the regular season outright and were co-SEC Tournament champions with Texas A&M after a weather delay turned into a cancellation of the conference championship game. Their road to the College World Series is not yet paved, though, and they’ll have some stiff competition if they want to achieve the ultra-rare five-peat.