Kusnick And Perfect Game's Legal Battle Raises Questions About NIL Rights

JUL 15, 2024-1 MIN

Kusnick And Perfect Game's Legal Battle Raises Questions About NIL Rights

JUL 15, 2024-1 MIN

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<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgjJ_gphPtcJHHWh2UfB44N6uCFSe3gQU6_WX8D2spmP60dmHIDPyuS67-x2QPYSXXvyTljJh_zZaTqvJK8jWXY-PEdV3BSxIV0w8Yf20MOQ535c1pRYKJINPW0i0a5tsSr-kvBc3NBP54sTfUlx0-n4H77kzBazgAiHWWYXdleeKiu5b-ZTFEGj1gURPo/s1280/leafbox.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="914" data-original-width="1280" height="229" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgjJ_gphPtcJHHWh2UfB44N6uCFSe3gQU6_WX8D2spmP60dmHIDPyuS67-x2QPYSXXvyTljJh_zZaTqvJK8jWXY-PEdV3BSxIV0w8Yf20MOQ535c1pRYKJINPW0i0a5tsSr-kvBc3NBP54sTfUlx0-n4H77kzBazgAiHWWYXdleeKiu5b-ZTFEGj1gURPo/s320/leafbox.jpg" width="320" /></a></div> The issue of Name, Image, and Likeness (NIL) rights has become a hot topic in the sports world, especially in collegiate athletics. However, the conversation around NIL rights is also gaining traction in youth sports, particularly concerning organizations like Perfect Game. Sports agent Josh Kusnick, who is ensnared in a lawsuit with Perfect Game, shed light on the pressing need for reform in a recent interview. Perfect Game originally hired Kusnick to develop NFTs and consult for their expansion into trading cards and memorabilia. As talks soured, Kusnick went public with his dealings with Perfect Game. The amateur baseball giant sued Kusnick for defamation, claiming his statements affected their licensing deal with an immensely popular trading card maker. <blockquote class="twitter-tweet">We've got a new lawsuit involving trading cards to talk about! It's...well...basically Perfect Game v. Joshua Kusnick...and it's a defamation/libel/slander lawsuit. Who wants to do a (kinda) live-read of this? (Kinda, because I skimmed it already) <a href="https://t.co/DLM0q3Rusy">pic.twitter.com/DLM0q3Rusy</a>— Paul Lesko (@Paul_Lesko) <a href="https://twitter.com/Paul_Lesko/status/1801299991870189939?ref_src=twsrc%5Etfw">June 13, 2024</a></blockquote> <script async="" charset="utf-8" src="https://platform.twitter.com/widgets.js"></script>  Kusnick recently filed a motion to dismiss, with a lengthy 400-page document filled with revealing details he hopes will clear his name. <h3 class="MsoNormal" style="line-height: normal; text-align: left;">Conditional Participation and Inadequate Compensation</h3> One of the most contentious issues is the conditional nature of participation in Perfect Game’s events. Kusnick highlighted Perfect Game forcing players to sign over their NIL rights as a prerequisite for participation. This practice not only exploits young athletes but also raises ethical concerns about commodifying children's talents. "If you sign a permission slip and you go to a Perfect Game event, they can make stuff of your kid from that event,” Kusnick said. “So, like, if your kid's 12 and he becomes Mike Trout, they can make a card of him when he's, like, 12. They can make cards of 12-year-old you forever and not pay you for it." <h3 class="MsoNormal" style="line-height: normal; text-align: left;"><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjFACSDjgiqWa7ApIUOTcJK73XQWeN2EbbJkkNXHam5yMk3JKkaY4Z3f1MrTctayLLuOZ9Vt_IUo-H1YG2rqtco6v74ksHvzXMZXmpsc84_nVBTpG5mpvhRDATJHSrqzR0uIWIi5FlVQcp4lf40v7LetMDi8KJgLlzQH_toNPUCzVfLI6_IDTkACEdwmzI/s537/release2.jpg" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="485" data-original-width="537" height="289" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjFACSDjgiqWa7ApIUOTcJK73XQWeN2EbbJkkNXHam5yMk3JKkaY4Z3f1MrTctayLLuOZ9Vt_IUo-H1YG2rqtco6v74ksHvzXMZXmpsc84_nVBTpG5mpvhRDATJHSrqzR0uIWIi5FlVQcp4lf40v7LetMDi8KJgLlzQH_toNPUCzVfLI6_IDTkACEdwmzI/s320/release2.jpg" width="320" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;">Perfect Game NIL Release - Kusnick's Motion To Dismiss </td></tr></tbody></table> The Value of Every Athlete</h3> Kusnick stressed the importance of recognizing the value of every athlete, not just the elite performers. He challenged the notion that only standout athletes deserve compensation. "Think about what that kid's worth to mom and dad, and that's what they're looking at,” he said. “Yes. And that's not me talking. No. I'm telling you; I was in those rooms. … The contributions of all athletes, regardless of their current skill level, are vital to the success of youth sports events. Recognizing and compensating these contributions is not just a legal obligation, but also an ethical imperative." <h3 class="MsoNormal" style="line-height: normal; text-align: left;">The Need for Reform and Transparency</h3> As NIL rights gain recognition and legal backing, significant reforms are needed in youth sports organizations. Kusnick called for transparency and fair policies that compensate all athletes for their contributions. "The absence of a robust NIL model in organizations like Perfect Game reflects a reluctance to adapt to the changing landscape,” he said. “The current approach, which requires athletes to sign over their NIL rights without compensation, is incompatible with the evolving legal and ethical standards of the sports industry." <h3 class="MsoNormal" style="line-height: normal; text-align: left;">Perfect Game’s Business Model: A Closer Look</h3> Perfect Game's business model is another point of contention. According to Kusnick, the organization's revenues have historically come primarily from on-field tournaments. <a href="https://web.archive.org/web/20240612185345/https://www.forbes.com/sites/waynemcdonnell/2024/04/04/perfect-game-sees-prosperity-thanks-to-new-investments-in-youth-sports/" target="_blank">However, recent management shifts indicate a significantportion of their revenue now comes from other sources, such as merchandise and branding opportunities</a>. "When they took over, 95% of the business revenues came from the on-field tournaments, right?” he said. “That was the product and the model. Most of the money comes from the games, but then they started branching out.” In Kusnick’s motion, he filed Perfect Game’s contract with Leaf, showing a $275,000 deal between the two companies for the trading card rights for Perfect Game’s events. <table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgB7G_lyqHGKsYqPw6bJRPCqxBMZvJXzNNWJylc1KB1tDvjA6MztHev0XQ8UMCUwFoCYmzeVFm3w7-aFB9J-Qg35EdSIacASK-rg07UVgVNMrc3huyFSuSkuURYPo9YITLw95ApawUOE4lPUQ6OXniC4h0V5dpJ0ZKIuueewNZysySBRcl4VYurlOQG-zE/s916/contract.jpg" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="916" data-original-width="583" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgB7G_lyqHGKsYqPw6bJRPCqxBMZvJXzNNWJylc1KB1tDvjA6MztHev0XQ8UMCUwFoCYmzeVFm3w7-aFB9J-Qg35EdSIacASK-rg07UVgVNMrc3huyFSuSkuURYPo9YITLw95ApawUOE4lPUQ6OXniC4h0V5dpJ0ZKIuueewNZysySBRcl4VYurlOQG-zE/s320/contract.jpg" width="204" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;">Leaf / Perfect Game Contract - Kusnick's Motion To Dismiss </td></tr></tbody></table> As these young athletes help to generate additional revenue for Perfect Game, Kusnick feels this is a situation where these players can no longer allow Perfect Game to exploit their talents. "If 35% of your revenues are not on-field tournaments and it's advertising, baseball cards, bat companies and all the other stuff that you're bragging, I'm sorry, what is that called, then?” he said. “Explain that to me like I'm stupid, like you described in the first sentence."<h3 class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: left;">Potential Privacy Concerns</h3>Another issue Kusnick brought up in his motion, as well as our conversation, was access to personal information. He explained how anyone can purchase Perfect Game's Scout level plan for $799.99/yr to gain contact information for all Perfect Game athletes. While this information might be useful for scouts, Kusnick alleged this access is unchecked without a screening process, allowing any person willing to pay the fee to have address and phone contact data. This little-known feature opens a major question about privacy concerns with how Perfect Game does or does not protect their data. <table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiqXuYtoGbbObhSq8KocrStAXQO2_0XMUm5IPiz5t2JMAqRBwHihUpfmFOyYowbZCSyNnoRCjJiJIqUlVGk_Zb-MctCrbmygPAJYjTdkUNI4THH5dCPkr6YNe16cWQouSJc64QxDB7jbR6gHsMAFAfstQjQyuAHl8ttbeyIMgkq0ZgiDfv4D7VhYesHvFk/s668/scout.jpg" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="668" data-original-width="659" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiqXuYtoGbbObhSq8KocrStAXQO2_0XMUm5IPiz5t2JMAqRBwHihUpfmFOyYowbZCSyNnoRCjJiJIqUlVGk_Zb-MctCrbmygPAJYjTdkUNI4THH5dCPkr6YNe16cWQouSJc64QxDB7jbR6gHsMAFAfstQjQyuAHl8ttbeyIMgkq0ZgiDfv4D7VhYesHvFk/s320/scout.jpg" width="316" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;">Perfect Game Scout Access / Kusnick's Motion To Dismiss </td></tr></tbody></table> <h3 class="MsoNormal" style="line-height: normal; text-align: left;">Embracing a Fair Future</h3> The handling of NIL rights in youth sports is at a critical juncture. Kusnick’s hopes this legal battle pushes organizations like Perfect Game to adapt to the changing landscape and implement transparent and equitable NIL policies. "This is not just a legal obligation but a step towards fostering a fair and respectful environment for all athletes,” he said. “Embracing these changes is essential for ensuring a just and equitable future in youth sports."