Steinberg Sues Former Partner

Claims conspiracy to lure clients away

New York, June 1, 2001 -- NFL agents Leigh Steinberg and Jeff Moorad filed suit against their former partner David Dunn in California Superior Court in Los Angeles. The suit alleges Dunn and his recently formed firm, Athletes First, have conspired to lure away most of Steinberg, Moorad & Dunn's clients.

The suit filed by SMD is a complaint for "damages and injunctive relief for breach of contract, fraud, common law and statutory unfair competition, misappropriation of trade secrets, intentional interference with contract, intentional interference with prospective economic advantage, breach of fiduciary duty, accounting and declaratory relief," according to ESPN.com.

The suit also claims SMD trained Dunn in the sports agency business and the agent schemed to secure clients of SMD for his own firm. Since leaving SMD in February, Dunn has successfully lured away several high-profile clients from SMD, including New England Patriot's quarterback Drew Bledsoe. He orchestrated Bledsoe's 10-year, $103 million deal with Patriots, which is the largest in NFL history.

Another point of contention for SMD, is the 24-month non-compete clause found in an employment agreement Dunn signed in 1999. The non-compete clause precludes Dunn from engaging in the sports representation business for two years after his departure or termination from SMD. Dunn left in February and promptly created his own firm, Athletes First, and engaged in the sports representation business.

The stakes in this lawsuit are high, since Steinberg's firm represented 86 athletes. If Steinberg loses, his dominance as one of the top football agents could be in jeopardy.

Sources:

Pasquarelli, L. "Superagent Steinberg sues former partner for stealing clients." CBSSportsline.com May 30, 2001.

Rovell, D. "No happy ending for real-life 'Jerry Maguire'." ESPN.com May 31, 2001.

Charlene Wilson