Jack Nicklaus Wins Defamation Lawsuit Against Nicklaus Companies
A Florida jury ruled on Monday in favor of Jack Nicklaus, awarding him $50 million in his defamation lawsuit against Nicklaus Companies, owned by billionaire banker Howard Milstein. Nicklaus, 85, filed the lawsuit in response to statements made by Milstein and other Nicklaus Companies officials in a previous lawsuit in a New York court. In the defamation lawsuit, Nicklaus 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.Nicklaus’s lawyer, Eugene Stearns, also pointed out that the conflict arose 3 and a half years ago when the company claimed that Jack was selling the PGA Tour for Saudi golf, which was not true. The jury determined that Nicklaus Companies actively participated in the publication of false facts that damaged the reputation of the 18-major champion and exposed him to “ridicule, hatred, distrust or contempt”. In court documents, the golfer’s lawyers wrote that an official from Nicklaus Companies asked him 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 accept 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 if the PGA was not in favor of a new league, he did not want to get involved. Nicklaus also stated that the defendants alleged that he was not mentally fit to manage his business affairs and that he suffered from dementia. The jury also ruled in favor of Milstein and Nicklaus Companies executive Andrew O’Brien, not holding them personally liable. Nicklaus Companies paid the legendary golfer $145 million in May 2007 for the exclusive rights to his golf course design services and marketing, promotion, and branding rights. Nicklaus resigned from the company in 2017, which triggered a five-year non-compete clause in the agreement that prevented him from designing golf courses on his own. Nicklaus resigned from the company’s board of directors in May 2022. 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 the time of that lawsuit, Nicklaus stated that the claims made by Howard Milstein were false. “Our relationship has been difficult, at best. I have no doubts about the outcome, but I have no intention of turning this into a public spectacle, if it can be avoided.” A Florida arbitrator ruled in July 2024 that Nicklaus was no longer restricted by the non-compete clause and was free to design golf courses. In April, New York Supreme Court Judge of the Civil Division, Joel M. Cohen, ruled that Nicklaus had the right to use his own name, image, and likeness, while Nicklaus Companies owned the trademarks it purchased and could continue to sell clothing and equipment with the Nicklaus name, the “Golden Bear” nickname, and logos.It’s difficult in a defamation case to prove damage to reputation, especially for someone like Jack, who always has a good reputation.
Eugene Stearns, Nicklaus’s lawyer
