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Free agent wide receiver Odell Beckham Jr. filed a lawsuit against sportswear giant Nike on Monday, alleging breach of contract and seeking more than $20 million in damages.
In the lawsuit, which was filed in Multnomah County (Ore.) Circuit Court, Beckham claims Nike “intentionally depressed sales” of products bearing his name in an attempt to avoid hitting sales benchmarks that would have triggered an automatic extension of his endorsement deal with the company.
Beckham also alleges Nike withheld more than $2 million owed to him last year.
“Rather than continuing to pay the compensation and guaranteed royalties it is contractually obligated to pay Mr. Beckham, Nike is willfully withholding millions of dollars and inventing excuses not to pay him,” the lawsuit states.
According to the lawsuit, the company told the 30-year-old wide receiver that he was being penalized $2 million for covering up Nike logos on his shoes and gloves during multiple NFL games, in violation of his contract. Beckham claims the violations were part of “a ploy” to help Nike “(get) out of a contract that it no longer wanted to honor.”
Spokespeople for Nike did not immediately reply to an email seeking comment Monday night.
Beckham said in a statement that he was “extremely disappointed” to file the lawsuit but did so “to ensure Nike fulfills their obligations and promises.”
“I’m taking a stand not just for me, but to set a precedent for all athletes who have dedicated their life to the sport they love – especially those who don’t have the means to stand up for themselves,” he said.
According to the lawsuit, Beckham first signed an endorsement deal with Nike in 2014, about six weeks before the New York Giants selected him in the first round of the NFL draft. The contract called for Beckham to receive a flat fee for his endorsement, as well as a percentage of the net sales of products that bear his name or likeness.
The deal also notably gave Nike the right to match the terms of any endorsement deal offered to Beckham by a competitor – a right it exercised when adidas attempted to sign him in 2017, according to the lawsuit.
Beckham claims Nike agreed to match all of the terms of the proposed adidas deal but, as the contract was being finalized, language about royalty figures that would trigger an automatic extension of the deal was altered without his knowledge. He also claims that, after 2020, Nike stopped “actively manufacturing and/or selling” products that would have generated royalties in an effort to prevent him from reaching the required mark.
According to the lawsuit, Nike then penalized Beckham for covering up the logos on shoes and gloves he wore during the last two games of the 2021 regular season, when he was with the Los Angeles Rams. He claims he did not cover up the logos.
“Nike offered to negotiation these manufactured penalties with Mr. Beckham, but only if Mr. Beckham would give up his rights to have the contract renewed at the agreed upon salary and minimum royalties and re-sign with Nike at drastically lower rates,” the lawsuit states, adding that Nike considers its deal with Beckham to have expired in June.
Beckham suffered a serious knee injury in the Rams’ Super Bowl win over the Cincinnati Bengals and has since become a free agent. He has yet to sign with a new team, or return to the field.
Contact Tom Schad at tschad@usatoday.com or on Twitter @Tom_Schad.
