Rich Paul in Hot Water, Sued Over $1.4 Billion Deal Negotiations for LeBron James, Draymond Green & Other NBA Clients

Right before the 2024 NBA draft kicks off, sports agent Rich Paul has another problem on his hands, one that could cost him a whopping $1.4 Billion. NBA agent and sports attorney Mark Termini has filed a lawsuit against Klutch Sports Group and Rich Paul, for breach of contract among other things.

According to the lawsuit, which was submitted yesterday, to a federal district court in Ohio, Termini is owed more than $4.9 million in unpaid fees and related damages by Klutch Sports. According to reports, the company has denied all the allegations presented in court. “This lawsuit is inaccurate and misguided and will be addressed in the proper forum,” said a spokesperson.

So where did it all start? Termini claims that after working with Paul for about 15 months, he signed a contract with Klutch to be the agency’s lead contract negotiator in 2014. In that capacity, he oversaw contract negotiations for Klutch and its clients.

Termini served as the primary point of contact for teams and formulated the company’s approach with NBA organizations and the media. He claims that his agreement with Klutch stipulated that he would be the “exclusive provider” of negotiations, meaning, the company could not employ another party for the services Termini was providing.

A three-year contract was agreed upon which was later extended to 2020. Klutch consented to provide Termini a quarter of the gross fees from NBA contracts and marketing agreements. According to the terms of the deal, Termini would get earnings even if Klutch and an NBA player discontinued their contract.

According to Termini, he secured Klutch contracts for over $1.4 billion during the free agency period. Deals featuring well-known athletes including LeBron James, Draymond Green, Ben Simmons, Eric Bledsoe, Tristan Thompson, and J.R. Smith, were negotiated by him. So when did the problems arise?

Rich Paul and Klutch Sports to answer in court after Mark Termini lawsuit

The lawsuit claims that as Paul started to make a name for himself in the league, Klutch & Paul started underpaying Termini, who declined to accept the lower prices. Termini further claims that Klutch & Paul employed third parties to carry out the work he was exclusively hired to do; a major breach of contract.

Mark also accused Klutch & Paul of hijacking credit for his work. The lawsuit stated, “Despite Termini being the lead (and substantively the only) negotiator at all points of the player contract negotiation process, KSG and Paul individually and collectively took public credit in the media for the contracts negotiated by Termini in order to enhance Paul’s industry reputation and the value of the KSG agency.” Instead of negotiating a lower pay, the company resorted to paying him less and less without explanations.

Termini said that by 2020, Klutch & Paul had postponed signing two contracts until the day after Termini’s contract with Klutch expired, to get out of paying him his commissions. The agent, who has been in the business since 1986, is yet to hear the court’s decision. The court is yet to hear from Klutch & Paul.

As the legal proceedings unfold, Rich Paul and Klutch Sports may be awaiting a hole in the pocket. The outcome may go on to affect the longstanding credibility of Klutch & Paul, a popular name in the industry. Watch this space for updates on this dispute.

But before you go, be sure to check this video of Leonardo Armato’s take on the deadly duo, Shaq and Kobe.