Nicklaus Wins $50 Million in Defamation Lawsuit Against Nicklaus Companies

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 trial 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-backed LIV Golf League, and spread those false claims to the media.

“It’s always difficult in a defamation case to prove damage to reputation, because, particularly for a guy like Jack, it’s always a good reputation,” declared Nicklaus’s lawyer, Eugene Stearns.

Eugene Stearns

Stearns added: “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. So, we are happy that Jack has been vindicated.” According to court documents, an official from Nicklaus Companies requested 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 accept a leadership role in LIV Golf. “According to Nicklaus, he had no interest in the offer and rejected it because he felt 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 participate,” it is stated in court documents. Nicklaus stated that the defendants also alleged that he was not mentally fit to manage his business affairs and that he suffered from dementia. «What they said was: ‘You need to have your keys taken away,’» Stearns commented. «But the combination of all that was unfortunate, and we are glad that all this will soon be behind Jack, and hopefully Nicklaus Companies will do well too. But it was an unfortunate incident, and let’s hope it’s over now.» The jury ruled 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”. The jury also ruled in favor of Milstein and Nicklaus Companies executive Andrew O’Brien, regarding not being held 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: “Howard Milstein’s claims 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.” 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, 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 purchased and could continue to sell clothing and equipment with the name Nicklaus, the nickname “Golden Bear,” and the logos.