Ex-Klutch agent Mark Termini filed a lawsuit in Ohio district court on Tuesday, accusing Klutch Sports Group and its founder Rich Paul of breach of contract.
The former agent who allegedly oversaw NBA contract negotiations and facilitated more than $1 billion in transactions including LeBron James‘ $154 million 2018 contract with the Los Angeles Lakers.
In 2019, United Talent Agency purchased a controlling stake in Klutch, which will continue to operate under its current brand while expanding into player representation in other sports.
As part of the acquisition, Paul was designated head of UTA Sports. The agency’s clients include LeBron James, Anthony Davis, and DeAndre Hopkins.
According to the arrangement, Termini was requested in 2012 to manage contract negotiations for Klutch, which was still in its early stages after Paul left the Creative Artists Agency with four clients.
Related stories
Termini committed to “provide contract negotiation, business advisory, and other administrative and support services” as an independent contractor for Klutch in exchange for 25% of the agency’s fees when negotiating any NBA or marketing contract.
The agreement is said to have stated that Termini will be paid “upon the signing by the client of the underlying playing or endorsement” arrangement and that he will be the sole provider of such services.
The lawsuit claims that Paul, who serves on UTA’s board of directors, began shortchanging Termini in 2018 once James’s credibility and industry experience were established.
Other contract violations include engaging third-party agents to do services that he was only supposed to supply.
Termini is credited in the lawsuit with drafting and implementing James’ 2014 contract with the Cleveland Cavaliers.
He claimed he also arranged contracts for Draymond Green, Dejounte Murray, and Ben Simmons, among others.
Termini oversaw all aspects of the contractual monetary discussions with the NBA teams and instructed KSG and Paul on how to carry out the negotiations including when to release information to the media, what to explain to clients about negotiation strategies, and when to engage or not engage with a team, according to the complaint.
Termini is therefore suing Klutch Sports for failing to pay him more than $4.9 million in fees for deals he claims he negotiated.
