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Sports Law

Nerlens Noel’s Case Against Rich Paul Pushed To Arbitration

Nerlens Noel Rich Paul

Remember the lawsuit that Nerlens Noel filed against Rich Paul and Klutch Sports Group a little over a year ago? You know, the one where Noel claimed that Paul interfered with his preexisting relationship with agent Happy Walters, promised Noel that he was a “$100 million man,” told Noel not to accept a $70 million offer from the Dallas Mavericks, and only focused on his marquee clients?

Well, the case is still going on. It is technically closed, but only because it was shifted, on September 9, from federal court to arbitration. The judge was very thorough in her explanation for why it was kicked out of court.

The decision notes that, under the Federal Arbitration Act, there exists a strong policy favoring arbitration before litigation. The judge looked at the arbitration clause in the Standard Player Agent Contract (SPAC) between Noel and Paul, which states,

Arbitration: Resolution of All Disputes Arising Out of This Agreement
Any and all disputes between the Player and the Agent involving the meaning, interpretation, application, or enforcement of this Agreement or the obligations of the parties under this Agreement shall be resolved exclusively through the Arbitration procedure set forth in Section 5 of the NBPA Regulations Governing Player Agents. As provided in Section 5(D) of those Regulations, if any arbitration hearing takes place, the NBPA may participate and present, by testimony or otherwise, any evidence relevant to the dispute. Because of the uniquely internal nature of any such dispute that may arise under this Agreement, the Player and the Agent agree that the arbitrator’s award shall constitute a final and binding resolution of the dispute and neither party will seek judicial review on any ground.

The Court found that Noel’s claims for breach of contract, breach of fiduciary duty, negligence, and breach of the duties of good faith and fair dealing each fall within the scope of the SPAC’s arbitration clause. It is a decision that strengthens the National Basketball Players Association’s role when it comes to adjudicating disputes between players and agents.

By Darren Heitner

Darren Adam Heitner, Esq., is a preeminent sports attorney and the founder of Heitner Legal, P.L.L.C., a Fort Lauderdale-based law firm specializing in sports law, contract negotiations, intellectual property, and arbitration. He earned his Juris Doctor from the University of Florida Levin College of Law in 2010 and a Bachelor of Arts in Political Science, magna cum laude, from the University of Florida in 2007, where he was named Valedictorian of the College of Liberal Arts and Sciences. Admitted to practice in the state bars of Florida, New York, and the District of Columbia, as well as multiple federal courts, Darren also serves as a certified arbitrator with the American Arbitration Association.

As an adjunct professor, Darren imparts his expertise through teaching Sports Law at the University of Florida Levin College of Law and Name, Image, and Likeness (NIL) at the University of Miami School of Law in the Entertainment, Arts, and Sports Law LL.M. program. His scholarly contributions include authoring several books published by the American Bar Association, such as How to Play the Game: What Every Sports Attorney Needs to Know, and numerous articles in prominent publications like Forbes, Inc. Magazine, and Above the Law. His thought leadership in NIL has earned him recognition as one of the foremost experts by The Wall Street Journal, USA TODAY, and On3, and he has been lauded as a “power player in NIL deals” by Action Network and a “top sports trademark attorney” by Sportico.

Darren’s passion for sports law led him to establish Sports Agent Blog on December 31, 2005, initially titled “I Want To Be A Sports Agent.” The platform, created as a New Year’s resolution, has grown into a cornerstone of the sports agency community, offering in-depth analysis of industry trends, legal disputes, and agent-player dynamics. His commitment to the field is further evidenced by his representation of numerous athletes and sports agents, as well as his prior role as an Adjunct Professor at Indiana University Bloomington, where he developed and taught a course on Sport Agency Management from 2011 to 2014.

Darren’s contributions have been recognized with prestigious honors, including the University of Florida’s 40 Under 40 Award, the University of Florida Levin College of Law’s Outstanding Young Alumnus Award, and designation as the best lawyer in Fort Lauderdale by Fort Lauderdale Magazine. He remains an active voice in the sports law community, sharing insights through his weekly NIL newsletter and his X posts, engaging a broad audience on legal developments in sports.