In 2007 Jack Nicklaus, professional golf’s all-time greatest, sold the rights to the Nicklaus Companies, his golf course design business and other marketing and promotional rights identified by his Golden Bear trademarks. For those too young to remember, Nicklaus was known as the Golden Bear while playing on the PGA Tour, due to his blond hair, and while accumulating a record 18 major championships. (Tiger Woods is next with 15 majors.) As part of the deal Nicklaus remained with the companies after the sale.
Ten years later, in 2017, Nicklaus resigned from his namesake companies. This triggered a 5-year non-compete agreement that was part of the sale. Nicklaus resigned from the board in 2022.
Shortly after the Nicklaus Companies sued their namesake for alleged breach of contract and other business wrongdoing focused on his purported diversion of business opportunities from the parent company. Nicklaus denied the allegations.
In 2024 an arbitrator decided that the non-compete agreement no longer barred Nicklaus from engaging in a golf course design business. Another court held that he has the right to use his name, image, and likeness in the golf business, while the Nicklaus Companies still own the trademarks and other rights that they purchased, including the right to sell golf equipment and clothing using the Golden Bear Brand.
You would think that would end the dispute, but more was involved.
Nicklaus’s name has always been associated with the PGA Tour. The Nicklaus Companies suggested that Jack had entertained an offer from the upstart and competing LIV Golf, which is backed by Saudi money. That claim was untrue. While an offer was made it was declined because of Nicklaus’s nearly lifelong affiliation with the PGA Tour. The Companies also implied that Nicklaus suffered from dementia and was not fit to manage his affairs. As a result, Nicklaus sued the Nicklaus Companies for defamation.
A jury in Florida has now awarded Nicklaus $50 million for damage to his reputation.
There are several lessons to be drawn from this. First, Nicklaus honored the five year non-compete agreement. (Most states will enforce non-compete agreements up to two years, but that number can be higher if it is part of a business sale, as it was here.) But once the time period is up, it’s up, and free competition is restored.
Second, damages in defamation can be hard to prove but in a high profile case can be significant.
Third, however, $50 million awards in defamation cases are rare and are usually much more modest.
Fourth, although it’s not part of the Nicklaus story, New Jerseyans who think they may have a defamation case should be aware that these are not fee-shifting cases. That is, a successful plaintiff is responsible for his or her own attorney’s fees.
