NFL Players Association and DraftKings Resolve NFT-Related Legal Dispute
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In an unexpected turn of events, the NFL Players Association (NFLPA) and DraftKings have put their legal beef to rest. The duo, who were locked in a 2024 lawsuit over DraftKings' NFT use, have finalized a settlement in the US District Court for the Southern District of New York.
On a typical Monday, they jointly filed a motion seeking a 60-day halt on the suit to fine-tune the settlement details. Details about the monetary aspect of the settlement remain under wraps.
The squabble between the two parties dates back to 2021 when DraftKings partnered with the NFLPA for its Reignmakers NFT/DFS hybrid contest. As non-fungible tokens (NFTs) were bubbling all over the place, the NFLPA agreed to rework its contract with DraftKings in 2023 when DraftKings announced it would discontinue NFT sales.
However, things took a turn when the NFLPA sued DraftKings in 2023, alleging that the new agreement allowed DraftKings to abandon the deal if a court ruled NFTs as securities, not merely digital collectibles. In a separate lawsuit the same year, a judge hinted that NFTs could be securities, leading to DraftKings shutting down its NFT business and terminating its contract with the NFLPA.
The NFLPA felt let down, arguing that the judge hadn't explicitly declared NFTs as securities, just that they could potentially be. Consequently, DraftKings had allegedly broken its contract with the union.
The lawsuit alleged, "DraftKings' rationale for repudiating its license agreement with us is child's play: the red-hot NFT market has significantly cooled down." Nevertheless, buyers' remorse isn't a legitimate reason to breach a contract, it added.
By May 2025, the lawsuit has ended with DraftKings victorious. The NFLPA's claims against the sports betting giant have been quashed, and the NFT debacle is now history. The settlement was part of a broader legal landscape involving sports organizations and NFTs, with similar controversies haunting brands like Nike [1][2].
[1] "Lawsuit between NFL Players Association and DraftKings over NFTs resolved." (May 2025). [Source]
[2] "DraftKings wins settlement over NFL Players Association NFT dispute." (May 2025). [Source]
[3] "NFLPA sues DraftKings for $65 million over alleged contract breach in NFT marketplace closure." (July 2024). [Source]
- The settlement between the NFLPA and DraftKings, although not disclosing the monetary details, marks a significant move in the finance sector, signifying a resolution to their legal battle over NFTs.
- Despite sports organizations like the NFLPA and businesses such as DraftKings showing a growing interest in the NFT market, perceived risks of NFTs being classified as securities continue to pose challenges in the American-football and sports businesses.
- The NFLPA's legal conflict with DraftKings in the sports world serves as a reminder of the complexities that stem from the blurred boundaries between business, sports, and emerging digital technologies, in this case, American-football and NFTs.
