Jack Nicklaus is to design golf courses under a new company name after a New York Supreme Court judge ruled that he can compete with his former company, Nicklaus Companies, for design work and other business.
Nicklaus split ties with Nicklaus Companies after the 18-time major champion was sued by the company, after it alleged tortious interference, breach of contract and breach of fiduciary duty while claiming Nicklaus was paid $145 million in 2007 to provide exclusive services and property to the Nicklaus Companies. The suit accused Nicklaus of working directly against the company and said that he had failed to deliver on the terms of the deal struck 15 years ago.
One breach of contract mentioned in the suit was Nicklaus’ negotiations with the Saudi Arabia Public Investment Fund and the $100 million offer from LIV Golf to be its CEO. An offer Nicklaus declined.
The name of Nicklaus’ new venture is 1-JN, LLC, a business co-owned by his wife, Barbara.
“I am looking forward to this next phase in my life where I am again designing golf courses under my own banner and in my own name,” Nicklaus said in the statement. “It has been more than 50 years since my first course, but I am even more passionate than ever about golf course design. I strongly believe that my ideas and creativity are even better now than they have ever been, and I am inspired to continue producing memorable and sustainable golf experiences that can be enjoyed for years to come. You might say I have nothing to prove, but I have a lot left to give.”
A statement issued on December 14 on behalf of Nicklaus Companies said: “We are pleased that the court has formally issued an injunction restraining Mr Nicklaus from using his name, image and likeness, publicity rights, and other intellectual property assets for commercial gain until this matter is resolved at a full trial. These IP rights were sold to Nicklaus Companies LLC in 2007 for $145 million.
According to the court’s order, the injunction extends to all “officers, directors, agents, shareholders, successors, employees, representatives, heirs, attorneys, and all other persons who are in active concert or participation” with Mr. Nicklaus or GBI Investors. This would include golf course developers, commercial sponsors, and any other entity who would look to exploit Mr. Nicklaus’ name, image or likeness, or any of the company’s intellectual property – including its ‘JACK NICKLAUS’ trademarks – for commercial gain.
“It is also important to understand that while the court declined to issue a preliminary injunction as to whether Mr Nicklaus can compete with Nicklaus Companies in designing golf courses, this is only pending a full trial to determine whether or not he has that right. Plus, any such design work would be subject to the court’s limitations on any use of the Nicklaus Companies’ intellectual property — or any use of Mr Nicklaus’ name, image and likeness — to endorse the golf course. All of these issues have yet to be litigated in full, and after hearing the evidence at trial, we will learn the final decision of the court.
“As we have said all along, our goal was to have the court sort out the legal responsibilities of the parties so that there is no confusion or misunderstanding going forward. The court’s injunction is a step in that direction. We still hope for a collaborative and amicable resolution to these matters. Despite the disparaging statements orchestrated by Mr Nicklaus’ attorneys against Nicklaus Companies and Jack’s business partner, we continue to have great admiration for Jack and his accomplishments, and will use our rights to his name, image and likeness to keep his legend alive. We will do everything we can to ensure his legacy lives on for generations to come.”