Mark Termini, a longtime NBA agent and sports attorney, and his company, Mark Termini Associates, sued Klutch Sports Group and its founder, Rich Paul, on Tuesday in an Ohio federal district for breach of contract. Termini claims he is owed more than $4.9 million for unpaid fees and related damages.
This is what a Klutch spokesperson said Sportico“This lawsuit is inaccurate and misleading and will be heard in the appropriate forum.”
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Termini says Paul recruited him to handle contract negotiations in 2012, at which time Termini had negotiated more than $400 million in contracts. Over the years, Termini’s clients have included Ron Harper, Pau Gasol, Rod Strickland, Jim Jackson and Kosta Koufos. In contrast, as Termini tells it, Paul was a novice in 2012 because he “had not previously negotiated a player contract as a player agent.”
Termini and Klutch agreed to a three-year contract, later extended through 2020. Klutch agreed to pay Termini 25% of Klutch and Paul’s gross compensation for NBA contracts and marketing deals. As depicted in the complaint, the contract provided for compensation to be earned even if a contract between Klutch and an NBA player were to terminate. Termini would also be the “exclusive provider” of contract negotiation services to Klutch.
Termini estimates he negotiated “over $1.4 billion in contracts” for Klutch during the free agency period leading up to the 2019-20 season. His services were used in deals with Draymond Green, Ben Simmons, Eric Bledsoe, Tristan Thompson, JR Smith and, most importantly, LeBron James. Termini says it was his idea to implement a “one plus one” contract strategy for James, with James making more than $19 million over the course of three short Cavaliers contracts – rather than one longer deal – when he entered Returned to the Cavs in 2014.
Termini adds that he not only negotiated the terms of the contract, but that he “decided the structure and amount of all contract proposals, when to reject an offer, and when to impose a deferral.” Termini is said to have accompanied Paul in advising clients on signing, “at which point Termini would set up a verbal handshake call between the team, the player, Termini and Paul.”
While Termini says he was “substantially the only” negotiator on these contracts, “[Klutch] and Paul]individually and collectively taking public credit in the media for the contracts negotiated by Termini.”
As Paul became famous and influential, Termini’s role seemed secondary and often without accompanying fanfare.
Termini claims that after Paul established himself as the market leader, Klutch and Paul Termini began paying less than what they owed. Termini claims he “refused to accept the reduced rates.” Termini also charges that Klutch and Paul hired outside agents to perform the work that he allegedly had the exclusive right to perform.
A complaint is of course not a neutral retelling of events. It is a pleading document. In the coming weeks, Klutch and Paul will respond to Termini’s complaint, denying allegations and filing a motion to dismiss. Expect them to offer a different story and provide information that disputes the claims.
Kurt Badenhausen contributed to this story.
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