Penn State looking to drop longtime athletics multimedia rights partner, lawsuit says
Penn State asked a federal judge Tuesday to make a legal determination in its favor that could potentially allow the university to move forward with its plans to drop its longtime multimedia rights partner.
The university plans to grant its athletics multimedia rights to Playfly Sports once its contract with Learfield Communications expires at the end of May. No reason was explicitly given in the 37-page filing.
Part of Penn State’s multimedia rights package includes an obligation to fund and produce regular and postseason radio broadcasts for football, basketball, ice hockey and wrestling contests, as well as select baseball and softball games. Weekly coaches’ shows and podcasts are also part of the agreement.
Learfield has protested the switch, claiming it runs afoul of the university’s procurement policies and state law. The company sought — but was denied — information about Playfly’s bid, the criteria the university used to make its decision, communications among Penn State’s top executives and more.
Penn State declined comment Wednesday through a spokesperson, citing the university’s policy against generally speaking publicly about pending litigation.
“Learfield is honored to have served as the multimedia rights partner of Penn State Athletics for 19 years and we are proud of the extraordinary value and affinity we have built with brand partners and fans alike,” the media company wrote in a statement. “Our request for information, as part of the university’s stated policies, is meant to make the (request for proposal) process one that is transparent for all bidders.”
Multiple letters sent from Learfield to the university were included in the filing. Some cited a series of laws that govern how commonwealth agencies may procure contracts from private organizations.
Attorney Steve Duncan — who is not affiliated with the case — wrote in an email that the tenor of the letters likely led Penn State to believe Learfield planned to file a lawsuit to obtain the information and prevent the university from finalizing a new contract.
Penn State, Duncan wrote, tried to get ahead of Learfield with its filing Tuesday. Should Chief U.S. Middle District Judge Matthew Brann rule in Penn State’s favor, any lawsuit filed by Learfield would likely be dead on arrival.
Penn State sought proposals for its sports multimedia rights a year ago. Learfield submitted its proposal before the deadline and, the university wrote, it was considered alongside the others that were received.
More than 10 months after the deadline, however, Learfield submitted a second proposal, the university wrote. Describing it as untimely and procedurally improper, Penn State did not consider the latest proposal.
The university — if it’s not allowed to work with Playfly to negotiate sponsorship agreements before the contract begins — said it could stand to lose millions of dollars.
In one of its letters to the university, Learfield wrote its proposal guaranteed Penn State more than $335 million over 10 years.
