Odell Beckham Jr. owns one of the greatest catches in NFL history (sorry, Cowboys fans), but this summer, he's been fighting an apparel giant instead of opposing defenders.
Beckham sued Nike in 2022. He alleged the company owed him compensation from his endorsement contract, including guaranteed royalties. The lawsuit was a $20 million breach of contract case.
This fight really started five years earlier, in 2017. Beckham was already signed to Nike when Adidas offered him a contract. Nike matched the deal, which could have been worth up to $40 million over eight years.
At its core, the lawsuit stemmed from a miscommunication on both sides. The Nike extension letter included the term "earned royalties," which can be interpreted differently than "net sales." Beckham believes he's entitled to more money, while Nike felt it had fulfilled its contractual obligations.
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Several months after Beckham's 2022 $20 million lawsuit, Nike countersued the wide receiver. The company claimed Beckham breached his contract by customizing his apparel and footwear. Nike's lawsuit specified a $1.15 million "footwear violation" and a "glove violation" of $862,000.
Nike called out the violations as covering or concealing the Nike marks on shoes and gloves, whether with tape, polish, or some other obstruction. The company also considered wearing non-Nike gloves as a violation. Beckham allegedly played in several games that violated his contractual stipulations before Nike brought down a penalty.
The Portland Business Journal reported that the Multnomah County Circuit Court jury hearing the case found neither side in breach of contract. In other words, they each won as defendants in their respective lawsuits.
Though Beckham celebrated his victory on Instagram, he won't actually be walking away with any money. Beckham and Nike will each win $0 as a result of these lawsuits—and the court expenses mean they probably both lost enormous amounts of money thanks to legal fees.
Beckham and Nike can appeal this ruling, so it's possible we could still see more movement in this case. For now, it's the same feeling as a tie in an NFL game. Both sides are fine with the outcome, but neither is exceptionally satisfied.
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