Jack Nicklaus Wins Defamation Lawsuit
A Florida jury ruled in favor of Jack Nicklaus, awarding him $50 million in his defamation lawsuit against Nicklaus Companies, owned by billionaire banker Howard Milstein. The lawsuit originated from statements made by Milstein and other Nicklaus Companies executives in a previous trial in New York. Nicklaus, 85, alleged that the defendants insinuated that he had considered a $750 million deal to become the face of the Saudi Arabian-funded LIV Golf League, and spread those false claims to the media.Court documents reveal that an executive at Nicklaus Companies asked Nicklaus to meet with representatives from Golf Saudi in 2021 to design a golf course in Saudi Arabia. During that meeting, Nicklaus learned that Golf Saudi wanted him to take a leadership role in LIV Golf. According to Nicklaus, he had no interest in the offer and rejected it because he felt that the PGA Tour was an important part of his legacy, and he did not want to get involved if the PGA was not in favor of a new league. Nicklaus also stated that the defendants suggested he was not mentally fit to manage his business affairs and that he suffered from dementia.It’s difficult in a defamation case to prove damage to reputation, especially for someone like Jack, who has always had such a positive image. But I think what was important was the dispute that arose 3 and a half years ago, when the company told the world that Jack was selling the PGA Tour for Saudi golf, when it wasn’t true. We are pleased that Jack has been vindicated.
Eugene Stearns, Nicklaus’s lawyer
The jury determined that Nicklaus Companies actively participated in the false publication of facts that damaged the reputation of the 18-time major champion and exposed him to “ridicule, hatred, distrust or contempt.” However, the jury ruled in favor of Milstein and Nicklaus Companies executive Andrew O’Brien, by not holding them personally responsible. In May 2007, Nicklaus Companies paid the legendary golfer $145 million for the exclusive rights to his golf course design services, as well as marketing, promotion, and branding rights. Nicklaus resigned from the company in 2017, which triggered a five-year non-compete clause that prevented him from designing golf courses on his own. In May 2022, Nicklaus resigned from the company’s board of directors. Shortly thereafter, Nicklaus Companies sued Nicklaus and his company GBI Investors, alleging tortious interference, breach of contract, and breach of fiduciary duty against Nicklaus. The lawsuit alleged that Nicklaus had diverted opportunities from Nicklaus Companies for his personal benefit. At that moment, Nicklaus stated: “The claims made by Howard Milstein are false. Our relationship has been difficult, at best. I have no doubt about the outcome, but I have no intention of turning this into a public spectacle, if it can be avoided.” In July 2024, a Florida arbitrator ruled that Nicklaus was no longer restricted by the non-compete clause and was free to design golf courses. In April, Judge Joel M. Cohen of the Civil Division of the New York Supreme Court ruled that Nicklaus was entitled to use his own name, image, and likeness, while Nicklaus Companies owned the trademarks it had purchased and could continue to sell clothing and equipment bearing the Nicklaus name, the “Golden Bear” nickname, and logos.What they said was: ‘You need to have your keys taken away.’ But the combination of all that was unfortunate, and we are glad that all this will soon be behind Jack, and we hope that Nicklaus Companies will also do well. But it was an unfortunate incident, and we hope that it is now over.
Eugene Stearns, Nicklaus’s lawyer
