July 21st 2024.
In 2022, professional football player Odell Beckham Jr. took legal action against Nike, claiming that the company failed to pay him the royalties that were rightfully his under their sponsorship agreement. In response, Nike filed a countersuit, alleging that Beckham had violated the terms of their agreement by making unauthorized modifications to his Nike branded gloves and publicly disclosing the details of their contract.
According to an article from The Portland Business Journal, Beckham was seeking damages of $862,000, the amount he believed Nike had withheld from him, while Nike was seeking damages of $7 to $15 million in their countersuit. However, after a trial in Oregon's Multnomah County Circuit Court, the jury determined that neither party's claims were strong enough to warrant a judgment. Despite this, both Beckham and Nike saw the outcome as a victory of sorts.
The lawsuit stemmed from a deal in 2017 where Adidas offered Beckham a contract worth up to $47 million, but Nike had the right to match the offer and keep Beckham as their sponsored athlete. In the end, Beckham chose to stay with Nike and signed a new five-year deal. During the closing arguments of the trial, Beckham's lawyer, Chad Colton, argued that Nike only brought up the issue of Beckham's glove customizations when it was time for him to renew his contract.
Beckham took to Instagram to share a photo of himself with his legal team and expressed his gratitude to God and his team for their hard work on the case. He also encouraged others to stand up for what they believe in, stating that justice had been served. On the other hand, Nike released a statement through a representative, stating that the verdict confirmed their compliance with their commitments and thanking the jury and the court for their attention to the case.
Although both parties were celebrating the outcome, the reality was that they essentially reached a stalemate, and both sides have the option to appeal the jury's decision. Prior to filing his lawsuit, Beckham told Complex that he felt it was his responsibility to take a stand not just for himself, but for other athletes who may not have the resources to do so. He believed that athletes should be held accountable for fulfilling their obligations under their contracts, but powerful companies like Nike should also be held accountable for honoring their commitments.
In related news, Nike had recently released a new sneaker for basketball player Kevin Durant, just weeks before the Paris Olympics.
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