Longtime NBA agent and sports attorney Mark Termini 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.
A spokesperson for Klutch said Sport“This process is inaccurate and misleading and will be addressed in the appropriate forum.”
Termini says Paul recruited him to lead contract negotiations in 2012, by which time Termini had already 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, at least as Termini says, Paul in 2012 was a rookie, “having 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 fee on NBA contracts and marketing deals. As described in the complaint, the contract contemplated the receipt of fees even if the contract between Klutch and an NBA player ended. Termini would also be the “exclusive provider” of contract negotiation services for Klutch.
Termini estimates he negotiated “more than $1.4 billion in contracts” for Klutch during the free agency period prior to the 2019-2020 season. His services were used for deals with Draymond Green, Ben Simmons, Eric Bledsoe, Tristan Thompson, JR Smith and, most notably, LeBron James. Termini says it was his idea to implement a “one plus one” contract strategy for James, in which James earned more than $19 million over three short contracts with the Cavaliers – rather than one longer deal – when he returned to the Cavs in 2014.
Termini adds that he not only negotiated the terms of the contract, but also “decided the structure and amount of all contractual offers, when to reject an offer and when to impose resistance.” Termini allegedly advised Paul on when to advise clients on signing, “at which point Termini would establish a verbal handshake between the team, the player, Termini and Paul.”
Although Termini says he was “substantially the sole” negotiator of these contracts, “[Klutch] and Paul]individually and collectively received public credit in the media for contracts negotiated by Termini.”
Although Paul became famous and influential, Termini’s role seemed secondary and often without fanfare.
Termini claims that after Paul established himself as an industry leader, Klutch and Paul began paying Termini less than they were owed. Termini claims it “refused to accept the reduced rates.” Termini also accuses Klutch and Paul of hiring third-party agents to perform work that he allegedly had the exclusive right to perform.
A complaint, of course, is not a neutral narrative of events. It’s a defense document. In the coming weeks, Klutch and Paul will respond to Termini’s complaint, deny the allegations and resign. Expect them to offer a different narrative and provide information that disputes the claims.
Kurt Badenhausen contributed to this story.
