A Florida jury on Monday awarded Jack Nicklaus $50 million in a defamation lawsuit against the Nicklaus Companies, owned by billionaire banker Howard Milstein.
Nicklaus, 85, filed the lawsuit in response to statements made by Milstein and other Nicklaus Company officials in a previous lawsuit in a New York court.
In the defamation suit, Nicklaus alleged that the defendants suggested that Nicklaus was considering a $750 million deal to become the face of the Saudi-funded LIV Golf League and spread that false claim to the media.
“It’s always difficult to prove reputational damage in a defamation suit, especially for a guy like Jack, because it’s always a very good thing,” Nicklaus’ attorney Eugene Stearns told ESPN on Monday. “But I think what was important was the controversy that arose three and a half years ago when the company told the world that Jack had given up the PGA Tour for golf in Saudi Arabia, which was not the case. So I’m glad that Jack was exonerated.”
The golfer’s lawyers wrote in court documents that Nicklaus Companies officials asked the golfer to meet with Golf Saudi representatives in 2021 about designing a golf course in Saudi Arabia. During that meeting, Nicklaus learned that Golf Saudi wanted him to take on a leadership role at LIV Golf.
“According to Nicklaus, he declined the offer because he was not interested in the offer and felt that the PGA Tour was an important part of his legacy. He did not want to be involved if the PGA was not in favor of a new league,” court documents state.
Nicklaus argued that the defendants also claimed that Nicklaus was mentally unfit to manage the business and that he suffered from dementia.
“What they said was, ‘We need you to take away your keys,'” Stearns said. “But the combination of all those things was unlucky. We’re happy that this will fall behind Jack soon. We hope that the Nicklaus Companies will do well as well. But it was an unlucky affair, and we hope it’s over now.”
According to the Palm Beach Post, a jury found that Nicklaus Companies actively engaged in the misrepresentation of facts that tarnished the reputation of the 18-time major champion and exposed him to “ridicule, hatred, mistrust, mistrust, and contempt.”
The newspaper also reported that a jury ruled that Milstein and Nicklaus Companies executive Andrew O’Brien were not personally liable.
The Nicklaus Companies announced in May 2007 that it had paid the legendary golfer $145 million for exclusive rights to his golf course design services, as well as marketing, promotion and branding rights.
Nicklaus resigned from the company in 2017, and a five-year non-compete clause in his contract was triggered, preventing him from designing golf courses himself. Mr. Nicklaus resigned from the company’s board of directors in May 2022.
Shortly thereafter, the Nicklaus Companies sued Nicklaus and his company, GBI Investors, alleging tortious interference, breach of contract, and breach of judicial duty against Nicklaus. The complaint alleges that Nicklaus diverted opportunities from the Nicklaus Companies for personal gain.
At the time of the lawsuit, Nicklaus said in a statement: “Howard Milstein’s allegations are false. Our relationship has been rocky at best. There is little question of the outcome, but I do not intend to make this a public matter if I can avoid it.”
A Florida arbitrator ruled in July 2024 that Nicklaus is no longer restricted by a non-compete clause and is free to design golf courses as he pleases.
In April, Judge Joel M. Cohen of the New York Civil Division Supreme Court ruled that while Nicklaus had the right to use his name, image and likeness, the Nicklaus Companies owned the trademarks he had purchased and could continue to sell apparel and equipment bearing Nicklaus’ name, “Golden Bear” nickname, and logo.