Knicks center Nerlens Noel has filed a lawsuit against agent Rich Paul and the Klutch Sports agency, reports Darren Heitner of SportsAgentBlog.com.
The suit, which was filed in Dallas, Texas, claims that in a birthday party for the Klutch-represented Ben Simmons in 2017, Paul convinced Noel that he was a “$100MM man,” and that if Noel fired then-agent Happy Walters and signed with him, Paul would get him a max contract. Noel subsequently left Walters and signed with Paul.
As part of the same pitch, Paul allegedly told Noel to cut off negotiations with the Mavericks, who had offered Noel a four-year, $70MM extension, and instead sign his one-year, $4.1MM qualifying offer. After a season plagued by injury, however, his free agency proved unsuccessful, as he claims that no one from Klutch presented any ideas for how to pursue long-term contracts, and none were forthcoming on the market, leading him to sign a two-year, $3.75MM contract with the Thunder, which Noel claims was largely orchestrated by Thunder stars Russell Westbrook and Paul George, rather than by Rich Paul.
Finally, the lawsuit states that Noel learned that multiple teams, including the Sixers, Clippers, and Rockets informed him that they attempted to get in touch with Paul about offering Noel a contract, but were unable to make contact.
Noel left Klutch Sports in December of 2020, and is suing Paul and the agency for the loss of approximately $58MM stemming from the initial declined extension with Dallas.
Rich Paul is a scumbag.
How so
It’s part of the job description for an agent, so you have to assume it applies.
Ya but there’s a difference between securing the best realisric deal presented compared to over-valueing the “100 million dollar man” who averages 5.5 points per game.
Not only that, but we have to assume there were some 1yr/10 mils / MLEs available on the market before Noel had to settle for league min late.
I think Noel has a great point that Paul kind of put him on the back-burner and didn’t try to get him a deal that made sense.
in short, Schroeder blew a golden opportunity to play-up in LA… instead it was his play that cost him as he wasn’t able to make the next step/ translate his backup stats in OKC into parallel stats per 36 min (despite seemingly having the skill-set to do so)
As for Noel, he was never considered a 30 minute double-double kind of guy.
Even if Dallas was using him as their primary center, he would still be evaluated as a role playing rim protector/rebounder.
Meaning any multi-year deal with a 10+AAV is a blessing … one jersey-salesman Paul declined out of ignorance
Noel was dumb enough to believe it. Made a business decision of his own free will. Is still making more in a year than you and I ever will combine in our lives and is suing because of greed. Yeah, Paul us scum. But this lawsuit should be tossed out quick
That’s not how an agent fiduciary duty works brother, Noel would be within logic and reason to expect the best possible and correct advice from his agent, however I believe Noel would have to prove Paul was his agent while making this pitch and I’m not sure he can
If teams were attempting to offer Noel a contract and RP never informed him I think Noel may have a case.
Everything else seems to be just bad advice from Paul and poor judgment from Noel
And if true the phone records and emails will prove it.
Come on, man. Logic reason would mean a guy averaging 10 and 8 isn’t worth big big money. It isn’t Paul’s fault if Noel believed it, regardless of whether or not Paul himself believed he was worth it (which can’t be proven one way or another).
Its not Noel’s role to evaluate his own worth.
THATS LITERALLY THE FRIGGIN POINT OF HIRING AN AGENT
@Steven
You can agree or disagree with Paul’s market assumptions but calling him a scumbag says more about you than him.
He is, but Noel also lacks any common sense. A max guy? He really believed that? There’s upselling a client and then there’s a pie-in-the-sky sales pitch.
That being said, IRL I know plenty of people who have blindly trusted Person A or Person B because they had won awards or were recommended to them by friends or because they were very well known in the profession, all the while there were plenty of common sense alarm bells that were ringing but disregarded due to the above.
Never ignore common sense and never blindly trust others. It’s okay to trust, but judge them as you would judge any other person. We all have eyes and ears; use them.
Exactly. For anyone wonder how lebron gets players on his teams this is how. He sandbags the market for said player and helps guide them to his teams.
@Tatsumaki
Wow…. what a stupid comment. If anything, Klutch clients get bigger contracts than they deserve when on the same team with LBJ. Perfect examples… Tristan Thompson and JR Smith. Cavs were bidding against themselves and increased offers to placate LBJ. Name me Klutch players that signed for below market to play with LBJ. I’ll wait.
@KnicksFan
It’s not the money ……… it’s the principle behind things, it’s the unfair way that Rich Paul and LeBron FUNNEL players into the Klutch fold.
@mike
And how do they “funnel” players into the Klutch fold? What are they doing that’s wrong? Your acting like the player doesn’t have a choice? There’s no penalty for NOT choosing to sign with them.
Disclosure: I don’t know exactly how Klutch operates behind the scenes.
Having said that, *if* it’s true that RP was failing to inform Noel of contract offers (not just telling him to turn down offers) then that in theory falls in line with Klutch “funneling”.
ie. Rockets and Hornets want to offer you 4/60. I’m your agent and never tell you. You, thinking you have no better offer, end up signing a 2/10 in [name team I want you to sign with] instead.
Again, all allegations none of us can prove. But they hold a little more weight coming from Noel.
Ok however if there were teams who are willing to say they called Paul to offer 4/60 and Paul never told his player about those offers and those teams are willing to testify to that then Paul broke his contract with player and would then be liable fir lost wages ( would also need to be verified phone calls emails texts ect
Throw in emotional damage for all the jokes we’ve been making about him these past few years
He won’t win this lawsuit. It clearly states he had an injury plagued season. No way he was getting a 100 million. He played well last season and still only got a third of that.
If he can prove that teams wanted to offer him a contract and his representation wasn’t performing their duties, it’s possible. But good luck proving that!
Not really that hard if the teams show proof that they extended offers and/or communication to Paul or his agency. It’s whether or not that it’s in the contract that requires Paul to deliver all news to his client (which might not since some players prefer to not be bothered, just to secure the biggest bag).
Sports agents are in a fiduciary relationship with clients who sign with them.
They are legally obligated to represent their clients best financial interests.
Yup. Not sure how it works in a legal case. I suppose even if Team A shows documentation they offered a contract for Noel to RP and RP has no documentation he ever informed Noel, he could always go with the “I talked to Nerlens on the phone about it.”
Not sure if that would fly. Either way, it’s why I always prefer email comm to phone. Never know when you’ll need a paper trail.
Did Rich Paul violate antitrust laws?
$100MM man sighed $4 million contract.
Per article
Paul convinced Noel that he was a “$100MM man,” and that if Noel fired then-agent Happy Walters and signed with him, Paul would get him a max contract. Noel subsequently left Walters and signed with Paul.
I guess Noel should have shown some loyalty to his previous agent. He made the choice, it’s on him. Maybe Noel and Dennis Schroeder can swap stories.
There’s no way for us to know one way or another right now since we are lacking lots of information. But one thing is for sure; there needs to be explicit evidence that Paul did not act in Noel’s best interests or manipulated him for personal gain. If there is only circumstantial evidence or conjecture, it will be an uphill battle.
Only Nerlens Noel and KnickerbockerAl think that guy who been a backup most of his career deserves to be paid like a starter, let alone make $100M.
Even if Noel has zero chance, I guess he feels much better just to file a lawsuit…. It’s the beginning of healing process… :)
I could tell some of this was going on with Klutch.
I’m a laker fan but I was shocked they got Harrell on that deal and then the opt in to be traded to Washington too.
I’m sure things like this have happened before but turning down the Mavs 4 years $70 million offer is a bad look on Rich Paul.
Rich Paul will win the lawsuit but his image has taken the biggest hit. If you are a name player you would not want to sign with him. Rich paul can kiss his career of repping big names players gone.
Yeah, I think that’s the big takeaway here. The decision to sign or not sign a deal is ultimately up to Noel, so I don’t understand how Paul is at fault.
But how do players go with Paul after this? Major incompetence to think an injury-prone guy should turn down a mega deal and gamble on himself for slightly more money.
Sixers, Clippers, and Rockets informed him that they attempted to get in touch with Paul about offering Noel a contract, but were unable to make contact.
This is true. Then he is at some fault. Noel should of been on him from the day he turned down the 70 mill. Personally I don’t like him or his relationship with LBJ. As it pertains to NBA business. One thing I don’t like about Bron. Is how he thinks he can manage players. And you better believe he does it.
@Knicks
Your nonsensical as usual. what about his relationship with LBJ rubs you wrong? Paul paid his dues at CAA to become an agent. Every major agent including Boras, Steinberg, Moorad can point to similar situations. Get over it.
I’m over you. Who are you the feelings police. Like IGAF who you like. The guy has a HS diploma. He’s only here cause of Bron. He absolutely does work behind the scenes to help Bron. Ok man from Uranus. Nobody should be allowed to that. You think AD wasn’t done by Bron. No players should ever be allowed to do that. So you can swallow Bron all you want. Some us actually have brains and can think for ourselves. Don’t get over that. I follow a league not individuals who think they can do what they want.
@DickerBocker
What feelings are uou referring to? And ergo said anything about who I liked? So what he only has a HS diploma? Being SB agent doesn’t require a BA, Masters or PHD. Im an agent but in thr entertainment world. Trust me, they’re are CEOs without 4 year degree running major organizations. But when LBJ demanded that CAA train Paul he EARNED his license like every other agent. The same way the son of someone famous ends up staring in the mailroom or as sn assistant and works their way up the ladder. LBJ gave him a chance abd he ran with it. And if you think players sign with him just because of LBJ and not because they felt he’s competent to hey then the best contact then you’re a moron. You constantly speak as if you have some empirical offerings when really, you’re offering an opinion. Your’e not that clever dude. You’re entitled to your own pinion. Stop acting like your the authority. Your’e not that guy. I don’t understand where all this emporium comes from. Not even a Bron fanboy. But fact is, like Scott Boras, love him or hathe him, Paul is one of the best agents in thr game and if LBJ has helped him open doors then so be it because guess what? It happens throughout most industries. You would be a fool to think MJ didn’t help David Falk sign other athletes. You would be a fool to think Kobe didn’t help Rob Pelinka geet the job as Lakers GM. But yiu have a problem with LBJ helping a guy get a chance as an agent? hmmmmm
@Arc
Every agent with the roster size he has can relate to an oops moment. It’s not necessarily a liable moment but a error in judgement although, if healthy and productive, maybe $100 mil deal would’ve been possible. But for every disappointed clients there’s a Tristan Thompson, JR Smith, Ben Simmons, John Wall that will swear he’s the best agent in the world.
I don’t think it is the name players that will avoid Paul. I believe it will be the second and third tier guys like Noel. From the story it seems Paul and his company just didn’t pay enough attention to Noel. Logic would say that it was because they were devoting their attention to higher profile clients.
I feel for Noel, but when it comes down to it, the main fault was his own greed. He was eyeballing a $100 million contract when it really would have just been a slightly bigger pile than the $70 million contract. It’s all ego and greed.
@Hiflew
Whether Paul neglected Noel by not returning calls is an unknown. But most agents have intermediaries to take calls until more substantial conversations are needed. I do agree with you tho that 2nd-3rd tier players are better off with smaller agents in MOST situations. In the case of JR Smith and Tristan Thompson they definitely benefited from singing with Paul.
Thats so enlightening. They benefited from playing for Bron. Bron was the one who got them those contracts.
@Knicks
That’s LITERALLY what I just said. For MOST non star players they would benefit from an agent who can give them more attention. However, for those playing WITH LBJ like TT and JR they have benefited. And at the end of the day it’s his JOB to get his clients the most money so in THOSE cases, the lesser players benefit by signing with Klutch. Noel never played with LBJ and MAYBE… MAYBE he didn’t get Paul’s full attention. Whether it’s true is an unknown.
“Kiss his career good bye”
Im not doubting you had a feel good moment typing that, but its complete nonsense
The 100 million is excessive for Noel, plus you have to consider and validate a team making that offer. It was projected from Paul, but costing Noel the extension and other formal offers could hurt Paul. Most likely Paul was reorganizing teams w other clients as he best saw fit and dismissing Noel. If there’s more situations like this for, then yeah I could see players be adverse to working with him, especially non-star level players. There’re a ton of articles on Paul’s manuevering (i.e. LeBron), and if there’s a decline in players signing with him, it’ll definitely minimize his control in the league.
Rich Paul has a HS Diploma. He’s a hustler who learned working under Leon Rose at Creative Artists Agency. During his time there, he made powerful connections and developed lasting relationships that eventually helped him start his own agency. “I had great teaching,” Paul said in his previous ESPN Magazine profile.Jul 21, 2021
If it wasn’t for LBJ. Let’s face it. It’s unlikely he would be where he is today. Don’t know about him do t care about him. But if I tell my client to turn down 70 mill. I have other options for him to get his money. And if true, why wouldn’t you take calls from other teams. I’d be talking to as many teams as possible. Moral to the story …..
You can’t trust anyone when it comes to business or money. It’s a numbers game not a feelings game. Everything Noel is doing now. He should of been doing the day after turning down the 70 mill.
Just take it out on Lakers, player. We got your back.
Hilarious when guys like Bill Gates do well with only a HS diploma they are lauded for their drive, focus and talent. But when guys like Rich Paul do it, it’s met with suspicion. I wonder what the difference between them is…
The difference is, Bill Gates went on to build computers, applications and the operating system by which most of the world use to run businesses, schools, research, etc.
Rich Paul’s claim to fame was befriending LeBron and the 2 of them making use of LeBron’s clout to funnel clients into Klutch …….. not to mention, Klutch being Lebron’s team-making tool of choice.
@Mike
Yeah and Paul is the first to use relationships to futher themselves in business. Paul still has to do the work. There are plenty of other players he reps that has nothing to do with a LBJ team.
Of course, not everything is LeBron related ……… but one can’t deny the way Rich Paul & LeBron connive to funnel “some” players into Klutch and to help LeBron with his LeGM role.
Back in 2018, when AD signed with Klutch Sports, everyone and his mother knew what will inevitably happen ……. AD winding up with the LAKERS.
Charles Barkley – “The fix is in …….”
Alvin Gentry – “I’m a realist. When Anthony signed with Klutch Sports, I knew what was going to happen”
@Mike
so did I. doesn’t mean jerr did anything wrong. Uou reallllly think the Lakers would NOT have attempted to acquire AD if he had declined to sign with Klutch? You really think there aren’t other star NBA players that declined to join Klutch or the Cavs when he was in Cleveland? As an agent it’s our kind to dangle carrots (incentives) itde I’ll to the player whether or not they bite.
One is brilliant the other rides best player of this generation. I need to explain this. If I’m an athlete. I only higher lawyers who know contracts and the law. I know what I’m worth. Every real player should. There’s a market to tell you. You don’t need an agent for that.
@Knicks
You’re so smug. There’s a salary cap. It’s already predetermined what kind of money a team can offer a player. When AD decided to sign with Klutch it wasn’t about getting the most money out of the Lakers. It was playing the heavy to get him out of NO and then get him opps outside of basketball like a part in Space Jams. It’s because of his partnership with United Talent Agency AS A BOARD MEMBER which opens up a world of tv and film opportunities. Draymond Green signed with Klutch and now we see him doing tv shows expanding his reach beyond just a player. And oh yeah, he also purchased an NFL sports agency and now reps about 20 NFL players including Jarvis Landry, Alvin Kamara and Melvin Gordon and other stars. But let me guess… they signed with him because of LBJ too? Dude you have a very small understanding of how an agent works and the off-field opportunities that a powerful agency like Klutch offers. The contract money is for the most part, already known and limited. It’s all the other stuff his tentacles are touching. You… checkers. Paul…chess baby. Oh yeah, and he’s getting into Mlb too.
This is going to be good theater. Rich Paul will no doubt bring up the hot dog episode when Noel could not enter the game. Noel’s lawyer is going to ask about how much does LeBron know and how much is he rewarded by the Rich Paul association. If Paul is smart, he’ll settle with air tight confidentiality clauses.
@Joe
LBJ has nothing to do with Noel. It’s not like he signed for less to play for a LBJ led team. What a joke.
Somebody wake this fellow up … nothing gets done at Klutch without LJ’s approval.
@Joe
If Noel was going to a team with LBJ then maybe. But if you REALLLLLY think that LBJ gave 2 bucks where he went to then you need to go back to sleep. Paul has 20 other clients that have never played with LBJ. Of course I know LBJ is a silent partner but this case has nothing to do with LBJ.
Hey dude, I been meaning to ask whether you’d like to buy a bridge … it’s in Brooklyn.
lmao I had to google the hot dog thing and it is hilarious. Most shocking is that Noel actually eats. Dude is a string bean.
I hope this doesn’t gain an inch of traction
Terrible precedent to set for the future if it does
I heard living quarters are tight and expensive in NY…maybe he can rent out the unused square footage between his ears to re-coup some of the money. SMGDH…..
I like the player too; but gimme a break, you make your own bread in this league on the court …….not thru agents, Twitter, or whatever other various instruments you involve yourself in off the court
Waaaaaaaah!
Bad agent got me to do something stupid, now I want him to make everything better!
Waaaaaaaah!
Nerlens, please, you are an adult, not some little kid. You made a bad business decision, based upon some guy buttering you up at a party. Now you are letting some lawyer talk you into filing a lawsuit over it, making him more money and you a laughingstock. Dude, just take responsibility for your mistake (oh, wow, hard for some people I guess) and move on. You are still a millionaire several times over, be happy and enjoy the time you have left in the NBA.
If he was an all star recently and just now signed a $100M contract he may have a case.
However, we are talking about Nerlens Noel who quite frankly just is not that good at basketball.
The only lawsuit he could possibly win is if he sued his momma for naming him Nerlens.
He’s actually great defensively and can finish when needed. He’s good at basketball, just not good at staying healthy.
the agent-player relationship is built on trust, imo. for the player to be successful, the agent needs to sell him like a product, but the product should be successful in the market as well!!
It’s funny that these are the very same things that “anonymous agent” said last year, about Rich Paul and LeBron.
Of course, ESPN , Stephen A. Smith and the mainstream media will discredit this, since it’s LeBron the “anonymous agent” was attacking.
link to yardbarker.com
Not 3, not 4, not 5, not 6, not 7.
The decision told us all who runs the NBA. He gets away with it. Then they see what else you can away with. That’s called being a human being. Why do you think Kyrie is the way he is. Or KD, or DivaHarden Heck if he can do it so can I. I know no player is running my team. He can have input, if he’s best player. A player has enough on his plate.
Hahaha … You can’t sue someone for just giving bad advice! Noel is an idiot whom if it was possible, should sue HIMSELF for being so freaking stupid.
His name is Nerlens Noel. I assume he wants to sue the world and all of the reality it contains.
why on Earth is everyone here siding with Paul? Paul should have been smart enough to tell him to take that money, and if he actually told Noel he’s a $100 million player, it’s not illegal, but it certainly hurts Noel’s credibility. and if the thing about teams being blocked from talking to him is true? even worse, and then you may actually get into the realm where a suit could be valid. Paul would be wise to settle with Noel even if only a bit of it is true for the sake of his public image.
The things that don’t add up here are:
1) If Noel signs ANYWHERE, Klutch gets a cut. The more Noel makes, the larger the cut for Klutch. Why didn’t they seem eager to max their cut?
2) If Rich Paul told Noel to decline the $70M from Dallas for a bigger payday — how in the actual f*** does he let his client end up signing for $3.75M after a $4.1M QO?
Even if the $100M is “pie-in-the-sky”, how does a good agent not land a deal for his rim running big above his previous QO?
Lets just use base numbers and assume Klutch’s commission is 10% per deal:
$4.1M: $410,000
$3.75M: $375,000
Non-$100M bag deal / or even $70M extension:
I dunno…$49.5M/4: $4,950,000 <— cut this in half and Klutch still gets over $2M while Noel gets $20M+ over 4 years.
If it was all on Noel being greedy, zOmGgGgG the greeeeed…where was his agent securing half of the $70 extension? A 3rd of it? A quarter of it? A deal with team options and incentives? So the signing team feels safe.
Fiduciary duty literally means: act in a way that will benefit someone else. But the rub is the act also benefits the agent
(if they're not brushing aside a client obligated to wait on them. Not that easy for teams to side-step agents)
Strip away all of the high drama bullshit and it still smells funny. Klutch def left money on the table, the simple figures above would mean they made a total of $785,000 for two contracts spanning 3 years…
Easy for someone to scream fiduciary duty not being met if the most they could squeeze was $7.85M in 3 years. Doesn't matter if it's more money than regular folks make. There's a market and agents are supposed to play that market in the best interests of those they represent. Simple.