Longtime agent Mark Termini, who alleged that he helped build Klutch before it became a powerhouse, filed a lawsuit accusing the agency and Paul of breach of contract.
Klutch Sports Group and agency founder Rich Paul have been sued for allegedly not paying fees to a former veteran agent, who used to head its NBA contract negotiations arm and engineered more than $1 billion in deals.
Ex-Klutch agent Mark Termini, in a lawsuit filed on Tuesday in Ohio district court, accuses Paul of breach of contract for failing to pay him more than $4.9 million on fees for deals he says he negotiated, including LeBron James’ $154 million 2018 contract that saw the star sign with the Los Angeles Lakers.
In 2019, United Talent Agency bought a majority interest in Klutch, with the agency continuing to operate under its own brand and expanding into representation of athletes in other sports. Paul was named head of UTA Sports as part of the deal. The agency’s clients include LeBron James, Anthony Davis and DeAndre Hopkins.
According to the complaint, Termini was asked in 2012 to oversee contract negotiations for Klutch, then in its infancy after Paul departed Creative Artists Agency with four clients. Under their deal, Termini agreed to “provide contract negotiation, business advisory and other administrative and support services” as an independent contractor for Klutch in exchange for 25 percent of the agency’s fees for negotiating any NBA or marketing contract. The agreement outlines that Termini is to be paid “upon the signing by the Client of the underlying playing or endorsement” deal and that he’s the exclusive provider of such services.
The lawsuit claims Paul, who’s on UTA’s board of directors, in 2018 started shortchanging Termini once the James-confidant’s credibility and experience in the industry was established. Other violations of his contract include hiring third party agents to provide services he was exclusively supposed to render, concealing the existence of certain contracts in order to avoid payment and failing to properly calculate fees on extensions and renewals.
In the lawsuit, Termini takes credit for designing and implementing James’ 2014 contract with the Cleveland Cavaliers in which the athlete signed a so-called “one plus one,” a maximum contract for a single year with a player option for the second. The strategy allowed James to earn roughly $19 million more over the course of his next three contracts with the team than by signing the typical maximum extension. He says he negotiated deals for Draymond Green, Dejounte Murray and Ben Simmons, among others.
“Termini conducted all details of the contractual monetary discussions with the NBA teams and instructed KSG and Paul in every aspect of the execution of the negotiations, including when to release information to the media, what to explain to Clients regarding negotiation strategies, and when to engage or not engage with a Team,” the complaint states.
Wednesday’s lawsuit isn’t Klutch’s first run-in with litigation. In 2021, former NBA center Nerlens Noel sued the agency, which filed its own lawsuit against the player for unpaid fees, for allegedly ignoring duties related to its representation of him. He claimed that he was advised by Paul in 2017 to turn down a four year, $70 million contract extension from the Dallas Mavericks, which then signed him to a one-year $4.1 million offer. Over the next four seasons, he made significantly less than the deal he was originally offered by the Mavericks. Noel’s lawsuit was dismissed and sent to arbitration before the National Basketball Players Association.
Klutch has set its sights on media and entertainment through its production banner, Klutch Originals. In 2021, it partnered with BET Studios for a five-part documentary series, Klutch Academy, exploring six college basketball players preparing to make the jump into the NBA.
News
VIDEO: Russell Westbrook Makes a Sweet Gesture to an Ex-OKC Teammate at Sparks vs. Aces WNBA Matchup
Russell Westbrook (Image Source: Getty Images, X/NikkiKaySN1) In his 16-year career, Russell Westbrook had numerous talents playing by his side but never won the big one. With his best days behind him, fans almost forgot how peak Russell Westbrook was. But after…
Former NBA Player Shocks Everyone By Suggesting Michael Jordan, LeBron James & Kobe Bryant Aren’t Among Top 5 All-Time Greats
LeBron James, Kobe Bryant and Michael Jordan (Image Source: Getty Images) When the debate of the GOAT in the NBA comes up, names like Michael Jordan, Kobe Bryant, and LeBron James often come forward. However, former NBA star John Stockton has a different…
VIDEO: Joel Embiid & Steph Curry Are “Embarrassed” After Shockingly Admitting That They Can’t Perform One Of The Most Popular Tricks In Basketball History
Joel Embiid and Stephen Curry (Image source: NBA) Twelve prominent NBA stars, including LeBron James, Stephen Curry, and Kevin Durant, are gearing up to represent the United States at the Paris Olympics with Team USA. While these players have already proven their prowess…
Watch as NBA star Giannis Antetokounmpo breaks down in TEARS after leading Greece to Paris Olympics
An emotional Giannis Antetokounmpo was seen crying tears of joy after helping to lead his nation to the Olympic Games on Sunday. The Milwaukee Bucks star and former NBA Most Valuable Player took a moment to himself on the bench and let his emotions overwhelm him…
VIDEO: Stephen Curry Leaves Teammates in Stitches With Joel Embiid’s New Hilarious Nickname
Stephen Curry and Joel Embiid (Image Source: USA Basketball) After the end of the 2023–24 NBA season and the highly anticipated NBA Draft, basketball fans turned their attention to the star-studded roster of Team USA. Stephen Curry and Joel Embiid are among the…
PHOTO: Bryce James Sparks Internet Frenzy with Recreation of His Dad LeBron James’s Iconic Meme
Bryce and LeBron James (Image Source: X/Ballislife) LeBron James and his family have been frequently in the news these days. Both the Lakers star and his eldest son, Bronny’s activities are closely monitored by the fans and news outlets. However, this…
End of content
No more pages to load