Finder’s Fee Litigation Against PGA Tour

[Steve_ Shaffer]

A lawsuit filed in federal court last week alleges that 1440 Sports Management Limited, a company owned by Ricky Paugh, has been treated unlawfully by the PGA Tour and Fortinet, which recently signed on to a six year sponsorship of the Tour’s September event in Napa, California. According to the complaint, the Tour was pressed to find a new sponsor for the event after Safeway “unexpectedly decided not to renew its sponsorship.
Mr. Paugh, whose background includes “almost ten years of experience securing sports sponsorships,” alleges that he facilitated an introduction of Fortinet to the Tour, based upon a promise that he would receive $2,000,000 in compensation. The complaint asserts that the Tour stated it “has a policy against paying agencies [an introducer’s fee].” However, the Tour advised him that it “would allow 1440 Sports to add a margin on top of the sponsorship fee that PGA Tour was seeking, to over his commission.” In other words, the sponsor would be funding the cost of the introducer’s fee by paying a higher sponsorship amount, but the Tour would be making the payment to the introducer.
Taking comfort with this information, and determining that it “was comfortable proceeding on the basis of an oral agreement,” Mr. Paugh informed the Tour that Fortinet was the prospective sponsor and two days later told Fortinet of the opportunity, including the $2 million that Fortinet would pay to compensate the plaintiff.
According to the complaint, however, shortly after the introductions were made, the Tour reversed itself, stating that it would not permit payment to be made by the Tour through an added margin or any other mechanism, i.e. plaintiff would need to secure payment directly from Fortinet.
Alleging that Fortinet–having already received the benefit of plaintiff’s introduction to the Tour–had no incentive or contractual requirement to make the payment, plaintiff asserts that it has not been paid for benefits that both the Tour and Fortinet acknowledge they received.
http://www.golfdisputeresolution.com/?p=7708[

[Matt_Cohn]

An oral agreement over a one-word piece of information for $2,000,000? What could possibly go wrong?

[Kalen Braley]

An oral agreement over a one-word piece of information for $2,000,000? What could possibly go wrong?

Matt,

If it did happen that way with an oral agreement only, which at least seems plausible... while I can't say he deserved it, but you know the old saying about a sucker being born every minute.

[Steve_ Shaffer]

A verbal contract isn’t worth the paper it’s written on. Similar expressions replace “verbal” with “oral”. Also, some instances use “agreement” instead of “contract”. Here is an example: An oral agreement isn’t worth the paper it’s written on----- attributed to Samuel Goldwyn of MGM

[A.G._Crockett]

I’m guessing this gentleman is hoping for an out of court settlement?  Promises aren’t legally binding and enforceable, and I believe that while verbal contracts ARE enforceable, one for this much money would have to be in writing to be valid.

[John Kavanaugh]

It's easy to take either side of a legal argument and tell us how you feel on the internet. I thought we were better than that.

[A.G._Crockett]

It's easy to take either side of a legal argument and tell us how you feel on the internet. I thought we were better than that.

We’re not better than that.

[John Kavanaugh]

Watched the Time Travelers Wife last night. Made me think of traveling back to your 1975 gym class where you could give me a smack down like all good teachers did back in the day. We would both be better for it.

[archie_struthers]

 


right on Jaka...spare the rod you know the rest

[A.G._Crockett]

Watched the Time Travelers Wife last night. Made me think of traveling back to your 1975 gym class where you could give me a smack down like all good teachers did back in the day. We would both be better for it.

I was a teacher in a rural county in the South in 1975.  Even then, and even there, “smack downs” were the end of your career.


“Good old days” speeches are rarely fact based.

[archie_struthers]

 


AG   some of the best memories grow better with age, maybe it was 1974   

[Carl Johnson]

I’m guessing this gentleman is hoping for an out of court settlement?  Promises aren’t legally binding and enforceable, and I believe that while verbal contracts ARE enforceable, one for this much money would have to be in writing to be valid.

An oral contact is verbal (it uses words).  A written contract is verbal (it uses words).  Stay away from "verbal" as it adds nothing.  It's either an oral contract or a written contract.  That's my position . . . and I am sticking to it.  Some oral agreements are enforceable as contracts, and some are not.  See Statute of Frauds.  Per the unimpeachable source of Google:

"The Statute of Frauds, codified in California Civil Code section 1624, requires certain contracts to be in writing (or that there be written evidence of the contract's terms). That is, an oral contract (one that is not in writing) may not be enforceable."


Assuming that California law would apply, you can get a good answer on the question here by Googling the California Civil Code section.   I'd assume that the lawyers who filed the complaint did.


By the way, I love this from Steve Shaffer, above: "An oral agreement isn’t worth the paper it’s written on"----- attributed to Samuel Goldwyn of MGM

[Lou_Duran]

https://www.casebriefs.com/blog/law/contracts/contracts-keyed-to-calamari/the-agreement-process/texaco-inc-v-pennzoil-co/


There is a Houston lawyer (Joe Jamail), a Democrat donor/activist, who I think received a 9 figure settlement/judgement. 


As a commercial real estate broker, Texas real estate law required written contracts in order to be paid a commission.  Me and many others in my profession have been burned a number of times by deceitful sellers in very difficult markets.


As a Texaco stockholder at that time, it really burned me that negotiations which had not been finalized and papered were found to constitute a contract and $Billions were awarded in damages.


As to the comments on the use of a rod in a school setting, I think I set the record at my rural Ohio high school in the late 1960s when I received the "board of education" three times in one study period (for popping bubble gum, twice unintentionally, the last time as the bell rung at the end of the period).  The 3/4" hardwood board left quite a sting on the buttocks.  Discipline was meted out in a variety of ways in those days with corporal punishment typically at the outset and escalating from there.  I am not aware that any of us were the worse for it.     

[Sean_A]

I don't know about the south in 75, but like Sweet Lou, I was hit in both catholic and public schools...always for frivolous reasons. Unlike Sweet Lou, I ask, am I any better for being beat?

Ciao

[Tim Martin]

If you are old enough and went to parochial school then you took your licks. You can parse it any way you want but that was the way of the world.

[Rob Marshall]

I graduated from HS in 1980 and I watched Gym teachers kick the crap out of kids all the time.

[Sean_A]

If you are old enough and went to parochial school then you took your licks. You can parse it any way you want but that was the way of the world.

Absolutely, we just accepted it. Oddly enough, we never questioned why girls weren't given the same treatment. I guess we took our beatings like sexist pigs.

Ciao

[Niall C]

I don't know about the south in 75, but like Sweet Lou, I was hit in both catholic and public schools...always for frivolous reasons. Unlike Sweet Lou, I ask, am I any better for being beat?

Ciao

Yes, but are you any worse ?


Niall


ps. in Scotland they used a leather belt which was known in Scotland as a tawse. The miscreant would hold their hands out in front of them with the palms up and the teacher would hit them across the hands. It was certainly in use in the 1980's.

[Tags:]

Tags: