A jury in Los Angeles has ruled in favor of Sports USA in a breach of contract lawsuit that was filed several years ago. SBG has been ordered to pay Sports USA over $2 million.
According to a press release distributed by Sports USA’s attorneys, the jury ruled unanimously in favor of Sports USA in its multiyear breach of contract litigation against SBG and the $2 million award was the full amount requested as compensation for “Sun’s breach of its advertising representation agreement with Sports USA.”
Sports USA alleged that in 2015 the company signed an ad rep agreement with Sun agreeing to serve as Sports USA’s exclusive sales representative for the 2016 and 2017 college football seasons. Sports USA says that, in 2017, when Sun could not fulfill its financial obligations to Sports USA under the contract, Sun attempted to terminate the agreement.
Sports USA CEO Larry Kahn said, “Sun CEO Jason Bailey thought he could breach the contract by filing claims against us which had no factual or legal basis, but under no circumstance would we back down and drop our valid claims. The jury’s decision completely affirms what we have said since day one, that Sun breached the agreement and had no valid justification for doing so.”
Sun Broadcast Group CEO Jason Bailey tells Radio Ink he was shocked and saddened by the verdict reached by the jury in Los Angeles. “Despite establishing wrongdoing by Sports USA from even before the inception of the agreement between the parties, the jury granted judgment in favor of Sports USA. The jury reached that verdict without the benefit of being able to consider key evidence of Sports USA’s wrongdoing. Sun was barred from introducing that evidence at trial on hearsay grounds. We remain determined to see that justice is done, and plan to pursue every available avenue to overturn this result so that Sports USA’s improper business practices are exposed and no other company falls victim. This verdict involves the old Sun, which has not traded since late 2018. It does not involve the current SBG, owned and operated by Gen Media Partners.”