Former players sue NFLPA claiming lost royalties

The NFLPA is now fighting legal battles on two fronts.

Already embroiled in bitter labor dispute/lawsuit with the NFL (this is day 38 of the lockout, with both sides resuming their mediation of the issue today) the NFLPA was sued by five retired players in federal court, with those players claiming that they were denied royalties from licensing deals that used their images.

The class action lawsuit, which was filed last Wednesday, alleges a breach of fiduciary duty by both the players association and its NFL Players Inc. subsidiary (the NFLPA’s for-profit licensing arm).

The NFLPA has yet to officially comment on the situation.

In 2009, retired players and the NFLPA reached a $26M settlement after retired players filed a class action lawsuit against the PA. In that case, it was ruled that the NFLPA, under then head Gene Upshaw, had mishandled the licensing rights of numerous retired players. Judgment was for the retired players, to the tune of $28M, but they and the NFLPA opted for the $26M settlement; saving the NFLPA $2M and expediting the process by which the retired players would receive their settlement.

Apparent concerns of res judicata aside, under this new lawsuit thousands of retired players are claiming that they are entitled to royalties from video games, trading cards, and other products that used their image or voice.