The signing of wide receiver Antonio Callaway will be a central part of the Oliver Luck-Vince McMahon trial which is set to be heard on July 11th. Luck is requesting at least $24 million from Vince McMahon who claims he fired Luck due to his hiring of Callaway.
As you may recall, Luck is suing McMahon and the XFL parent Alpha Entertainment for the remainder of his contractual salary and bonuses after McMahon fired him on April 9, 2020. The firing occurred two months after Callaway was signed and one day before the league folded due to the COVID-19 pandemic. Although the Alpha Entertainment filed for bankruptcy, McMahon guaranteed the contract of Luck.
The original defense submitted by McMahon was that Luck was dismissed with cause for three reasons. First, he left the XFL offices to return to his home in Indiana once the COVID-19 pandemic started to shut businesses and offices down. McMahon claimed that this was a sign he had abandoned work. Second, he retained a company phone after his firing and used it for his personal purposes. Finally, despite McMahon’s edict that the league sign players without previous legal troubles, Callaway was signed by Luck to play for the Tampa Bay Vipers. Callaway had previous run-ins with the law which was in direct contradiction to McMahon’s order.
The last issue will be the sole issue argued at trial to determine whether Luck breached his contract with McMahon or if McMahon unduly fired Luck without cause and as a result, compensate the former commissioner. The rest of the allegations were dismissed in a pretrial ruling this past February.
Per the Sports Business Journal, McMahon will win if the jury makes two findings:
- Callaway signing was valid cause to fire Luck, and
- There was nothing Luck could do to remedy the situation after it happened.
If the damage determined happens to be the money the league paid Callaway, Luck could cure this by paying restitution and correct the mistake. This could mean that if a remedy is available, McMahon’s firing was not for cause. McMahon will argue that the signing ‘damaged the reputation of the league and destroyed trust between him and Luck…”
Payout Perspective:
This will be a very interesting trial with both sides filing pre-trial motions to limit evidence and testimony (more on that in another post). But the main issue boils down to the signing of Callaway and whether it violated Luck’s employment contract. Notably, Luck was terminated two months after Callaway’s signing so its hard to believe based on the circumstantial evidence that the move created an immediate rift. Yet, the edict by McMahon was clear and if it was something that the XFL hinged its reputation on, it could be problematic for Luck. MPO will have more in the coming days.
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