Nicklaus Wins $50M in Defamation Lawsuit: Conflict with Nicklaus Companies

Jack Nicklaus Wins Defamation Lawsuit Against Nicklaus Companies Officials

A Florida jury ruled on Monday in favor of Jack Nicklaus, awarding him $50 million in his defamation lawsuit against billionaire banker Howard Milstein and other executives of the company that bears the name of the 18-time major champion. 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-funded LIV Golf League, and spread those false claims to the media.

“It’s always difficult in a defamation case to prove reputational damages, because, especially for a guy like Jack, it’s always a good reputation,” said Nicklaus’s lawyer, Eugene Stearns.

Eugene Stearns, Jack Nicklaus’s lawyer

In court documents, the golfer’s lawyers wrote that an executive 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.

“What they said was: ‘You need to have your keys taken away’,” Stearns said. “But the combination of all that was unfortunate, and we’re glad 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.”

Eugene Stearns, attorney for Jack Nicklaus

Nicklaus Companies stated that it paid the legendary golfer 145 million dollars 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: “The claims made by Howard Milstein are false. Our relationship has been difficult, at best. I have no doubt about the outcome, but I do not intend to turn 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 registered trademarks it purchased and could continue to sell clothing and equipment with the Nicklaus name, the nickname “Golden Bear,” and the logos.