A judge has denied a request from Rich Paul to compel arbitration in a lawsuit filed by his former associate Mark Termini. Judge Patricia A. Gaughan of the US District Court for the Northern District of Ohio said in an opinion and order that Termini has plausibly alleged that Paul and Klutch Sports violated the terms of their agent agreement. Gaughan also ruled hat the contract breach claim isn't covered under their contract's arbitration clause.
In June, Termini sued Paul and Klutch Sports claiming he is owed more than $4.9 million for unpaid fees and related harms. Termini estimates he negotiated “in excess of $1.4 billion in contracts” for Klutch. Some of the clients Termini negotiated on behalf of include LeBron James, Draymond Green, Ben Simmons, Tristan Thompson and J.R. Smith. Termini says Paul recruited him to provide negotiation services to Klutch Sports. Klutch agreed to pay Termini 25 percent of Klutch and Paul's gross fee on NBA contracts and marketing deals.
In August, Paul asked Gaughan to let the NBPA arbitrate the dispute.