The sports marketing company Playfly is suing college athletics multimedia-rights giant Learfield. The lawsuit alleges that Learfield failed to make full royalty payments for Florida’s rights over the last two years.
The lawsuit claims that Learfield committed “multiple breaches” of a six-year sponsorship agreement between National Advertising Partners, a subsidiary of Playfly. The complaint states that Learfield made a partial payment in 2021 and has not paid any of the 2022 guaranteed payment.
The lawsuit, filed in Delaware this month, claims that Learfield’s justification is because of changed conditions brought on by the COVID-19 pandemic. Playfly says Learfield has no authority to refuse payments. Playfly says it is owed several million dollars.
Learfield has not yet answered Playfly’s filing, but the company disputes the claims.
“Learfield manages the athletic multimedia rights for Playfly at the University of Florida,” Learfield said in a statement to Sportico. “This litigation is a simple contract dispute regarding the appropriate adjustment for COVID impairment to these rights. We believe we have acted appropriately and followed the terms of our agreement and we intend to defend our position aggressively.”
Playfly declined to comment. Florida’s athletic department—the University Athletic Association—told Sportico that “[it] is not a party to the disagreement,” and declined to comment further.
Learfield expects to file a motion to dismiss the case this week.
