Rich Paul is a busy man these days.
On Wednesday morning, a significant legal battle unfolded as one of the sports world’s most influential agencies, Klutch Sports Group, was sued in federal court for breach of contract.
The lawsuit was filed in the Northern District of Ohio by NBA agent Mark Termini and his company, Mark Termini Associates Inc. Klutch Sports, founded by Rich Paul and known for representing high-profile athletes like LeBron James, A’ja Wilson, and Draymond Green, is at the center of this legal dispute.
The lawsuit alleges that Klutch owes Termini over $4.9 million plus interest, stemming from an agreement made in 2014 and later extended until December 2020. Under the terms of this contract, Termini was to receive 25% of the agency fees from all NBA client deals brokered by Klutch.
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However, the suit claims that after successfully negotiating several major contracts that significantly boosted the agency’s profile—including those for James, Green, Ben Simmons, and J.R. Smith—Klutch began to pay Termini less than the agreed-upon 25% starting around 2018.
Though the payments temporarily returned to the agreed rate, they were subsequently reduced again.
The complaint accuses Klutch and Rich Paul of not only reducing payments unilaterally and improperly but also of taking undue credit for deals that Termini negotiated. “Despite Termini being the lead—and practically the sole—negotiator throughout the player contract negotiation process, KSG and Paul individually and collectively took public credit for the contracts negotiated by Termini to bolster Paul’s reputation in the industry and the value of the Klutch Sports Group,” the lawsuit states.
In response to the lawsuit, a spokesperson for Klutch described the allegations as “inaccurate and misguided” and stated that the issues raised would be “addressed in the proper forum.”
The legal proceedings are expected to bring more details to light in the upcoming weeks as each party presents their side of the story in court.
