Concerns Emerge Over OneTeam Partners’ Incentive Plan
Last June, eight board members of OneTeam Partners—a licensing group co-owned by the players’ unions of five major sports leagues—endorsed a resolution to include member unions in a plan for “profits units.” These units, akin to conventional equity, could be converted into cash if the company performed well, raising concerns within at least one union.
Union Official Raises Alarm
By late 2024, an official from the National Football League Players Association (NFLPA) expressed repeated concerns that the new plan might allow labor representatives serving on OneTeam’s board, including NFLPA head Lloyd Howell Jr. and Major League Baseball Players Association head Tony Clark, to seek financial gain that could be detrimental to union members.
Resolution Details and Criticism
The resolution, acquired by The Athletic, stated that any payouts from a senior employee incentive plan (SEIP) would benefit the unions represented by the board members. It further acknowledged that unions could subsequently allocate those funds to their board members. An NFLPA official critiqued the plan, highlighting that its primary aim was to financially benefit the individuals representing labor organizations on the board.
OneTeam’s Response and Legal Review
In a statement, OneTeam confirmed that while the plan was explored, it was ultimately discarded. The company initiated a legal review earlier in 2024 to assess the feasibility of offering incentive-based compensation to its board members and concluded that grants should be made to the respective player associations to ensure compliance with union governance.
Ongoing Federal Investigation
A federal investigation, led by authorities from the Eastern District of New York, is currently underway, focusing on OneTeam Partners and its officials. The specifics of the investigation remain unclear. Both NFLPA and MLBPA have retained separate legal counsel amid the probe, with the NFLPA committing to cooperate fully.
Board Composition and Ownership Staking
Five major sports unions hold stakes in OneTeam, with the NFLPA and MLBPA owning a combined two-thirds of the company. The NFLPA holds 44%, while the MLBPA has 22%. The other unions have smaller shares: 3.3% for Major League Soccer, 0.3% for the U.S. Women’s National Soccer Team, and 0.2% for the WNBA.
Potential Conflicts of Interest
Legal experts express concern about potential conflicts of interest, as the SEIP resolution indicated a distribution of new plan units favoring the NFLPA and MLBPA. Critics argue such arrangements may create undue influence over decision-making at OneTeam. With heightened scrutiny following recent allegations and investigations, the labor organization officials on the board must navigate their fiduciary duties to their members carefully.
