The University of Pittsburgh is suing IMG College, one of the nation’s leading sports marketing companies, claiming that it has “intentionally withheld” in excess of $3.6 million.
The university, through its counsel of Buchanan Ingersoll & Rooney, filed the suit Monday in federal court in Pittsburgh, a little more than a month after privately demanding payment from IMG.
The suit alleges that IMG is withholding $3,609,899.51 in royalties and additional payments “in retaliation for Pitt’s decision not to extend the term of the License Agreement.”
“The University had a multimedia rights contract with IMG College. IMG College failed to pay certain amounts owed under that contract. We look forward to resolving the matter in court,” a Pitt spokesman said Tuesday.
Tom Walsh, IMG’s corporate lawyer at Winston & Strawn LLP, offered a statement through an IMG spokeswoman.
“IMG College has very much valued its relationship with the University of Pittsburgh and hopes that this matter can be resolved amicably,” Mr. Walsh said. “IMG College is confident that it has complied with all of its contractual obligations.”
Pitt and IMG’s license agreement came to an end June 30 after a seven-year partnership, effective July 2012. During that time, IMG handled the Panthers’ marketing, promotional and commercial rights.
On March 13, Pitt athletic director Heather Lyke notified IMG in writing of the department’s decision not to extend the license agreement beyond its expiration date, according to the suit. One day later, Pitt announced a new partnership with JMI Sports to handle its multimedia rights and corporate sponsorships.
Pitt and JMI’s agreement began July 1, immediately after the university’s deal with IMG expired.
Still, Pitt says it is awaiting the funds it says it’s owed from IMG. The university demanded payment on June 6.
According to the suit, in exchange for the grant of the license, IMG agreed to pay Pitt royalties for broadcast and publication rights, as well as compensation for game tickets and parking passes provided to IMG, on June 1 of every year the agreement was in effect.
IMG also agreed to pay Pitt additional funds for “exceptional performance,” according to the suit. In the court document, Pitt states that the Panthers’ football team reaching the 2018 ACC championship game entitles the department to an unspecified exceptional performance payment.
Those royalties and payments total $3,535,000, according to the suit. Additional payments — $26,364.65 of travel costs for IMG staff and sponsors, $25,000 with respect to the “UPMC Pitt Live Wire” platform, and $23,534.86 of online auction revenue — bring the total owed to a little more than $3.6 million.
IMG’s alleged lack of payment and expired license agreement has not deterred Pitt from working with the company in different areas.
On June 10, four days after privately demanding payment from IMG, Pitt announced a multiyear extension with Learfield IMG College Ticket Solutions. The company’s Ticket Solutions branch focuses on customer service, ticket renewals, season ticket sales, premium seating at Heinz Field and Petersen Events Center and more.
“Learfield IMG College Ticket Solutions has been an outstanding partner for the Panthers,” Ms. Lyke said in a statement on June 10. “Their professionalism and expertise have been outstanding assets as we strive to provide our fans with the very best experiences at each of our athletic venues.”
John McGonigal: jmcgonigal@post-gazette.com and Twitter @jmcgonigal9
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First Published: July 17, 2019, 2:43 p.m.
