Retried American golfer Jack Nicklaus wins $50 million defamation lawsuit after LIV Golf misrepresentation claims


Retried American golfer Jack Nicklaus wins $50 million defamation lawsuit after LIV Golf misrepresentation claims

85-year-old former American professional golfer and golf course designer Jack Nicklaus has been awarded $50 million in a defamation lawsuit against Nicklaus Companies, owned by billionaire banker Howard Milstein, after Milstein and other Nicklaus Companies officials reportedly suggested that Nicklaus had considered becoming the face of the LIV Golf League, which is financed by Saudi Arabia, in a $750 million deal.

In May 2022, following Nicklaus’ resignation from his board role in his former company Nicklaus Companies, which he officially resigned from in 2017, the company filed a lawsuit in New York accusing Nicklaus of multiple breaches, such as taking business opportunities away from his former company to benefit himself.

Reportedly, Nicklaus Companies paid Nicklaus $145 million in 2007 for exclusive rights to his golf course design services and marketing, promotional and branding rights, and Nicklaus entered a five-year noncompete clause in 2017 when he resigned. However, Nicklaus Companies filed the lawsuit as it argued Nicklaus was in breach of such clauses. Milstein and Nicklaus Companies officials reportedly stated within this lawsuit that Nicklaus had “privately pursued” a leadership role within LIV Golf. Milstein’s and the officials’ suggestions about Nicklaus were also reportedly shared with the media.

According to court documents, a Nicklaus Companies official had asked Nicklaus to meet with Golf Saudi in 2021 regarding the design of a golf course within Saudi Arabia. It was here that Golf Saudi offered Nicklaus a leadership role within LIV Golf.

Court documents read: “According to Nicklaus, he had no interest in the offer and declined because he felt the Professional Golfers’ Association (PGA) Tour was an important part of his legacy, and if the PGA was not in favour of a new league, he did not want to be involved.” PGA disapproved of LIV Golf for multiple reasons, such as concern over player poaching, the funding source from Saudi Arabia’s Public Investment Fund, and the threat to PGA market dominance.

The defendants also reportedly made false claims about Nicklaus being in an unfit mental state.

A Florida jury ruled that Nicklaus Companies falsely published information that damaged Nicklaus’ reputation and ignited “ridicule, hatred, mistrust, distrust or contempt” towards Nicklaus. However, the jury also cleared Milstein and another Nicklaus Companies executive, Andrew O’Brien, of personal liability.

Nicklaus’ attorney, Eugene Stears, voiced to ESPN: “It's always hard in a defamation case to prove damages to reputation, because in particular for a guy like Jack, it's always such a good one…

But I think what was important was the dispute that arose 3½ years ago when the company told the world that Jack was selling out the PGA Tour for the Saudi golf, when it was not true. So, we're happy that Jack's been vindicated.”

In summary, Nicklaus has the right to use his own name, image and likeness, while Nicklaus Companies owns the trademarks it purchased and can continue to sell apparel and equipment with Nicklaus’ name, “Golden Bear” moniker and logos.

Image courtesy of Flickr. For full licence details, please see here.

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