Alex Formenton sues agent for $20 million

[Chileiceman]

A few points after reading that article.

It's standard procedure to reject a QO. Any player who has had any success during their entry level deal won't take a 2nd contract at league minimum. If at the time of the offer Newport was unaware that Formenton was going to be investigated in the sexual assault complaint, it's not negligence on their part to advise their client not to take the low-ball offer. No one takes a league minimum deal after putting up 32 points in their rookie year, especially on a team that had a lot of capspace. If shortly after the rejection it became known internally in Ottawa that Formenton was a likely rapist, Newport lost all their leverage and Ottawa is thankful that there was no contract singed. Newport can't be held liable if something unforeseeable (assuming Newport was unaware of Formenton's likley pending crimanl charges) like that happened after the initial rejection. The fact that in his pleadings Formenton thinks that had he signed his QO he could have then signed an extension in 2023 is ridiculous. There is no way Ottawa would want him under contract a day longer than they were legally required to do so.


Lastly, the fact that he's working construction is his own fault. They'd probably take him in the KHL or VHL, like some of his other "buddies".

 

[Chainshot]

So he's saying he didn't like what someone did to him? Huh.

 

[Masked]

Strange lawsuit.
It says the agreement between player and agency ended 12th July 2022. So basically they adviced him legally for almost the first two weeks of Free agency. Then after having never signed a new deal, they still offered their services and he took them without being willing to sign a new agreement?

And some of his claims about not telling him implications of signing in Europe vs. future NHL career is common knowledge. At worst it can be that he in some way was strung along given that the agency might have gotten let's say reasonable positive feedbacks from the Senators but them wanting to wait to sign. I just don't see how this is on the agent/agency.

I'd say most listed is common knowledge and a player as well has to do his due diligence.
Also he was unofficially being represented for about 18 months after their agreement ended, so its most definitely combined with his own lack of research, as much his own fault. He probably knows all of it and just want to get money for a career he believe he should have.

First off, Westhead is a terrible writer. He writes in a manner that makes things confusing. I don't know why he included that the agent-player agreement expired in July 2022 if Arnott was still representing Formenton for years after. Unless there's some context where it's relevant, which Westhead didn't provide, it just confuses the reader until later in the article discusses when the relationship ended.

As far as common knowledge, things like the Dec 1 cutoff date might be common knowledge here but it might not be common knowledge for players who have agents looking after stuff like that. A player doesn't have to do his due diligence on that because he has an agent who is supposed to do that for him.

 

[Romang67]

Shame. I wish him a long, but ultimately fruitless, legal battle.

 

[AlienWorkShop]

I'm no legal scholar, but the lost 'future earnings' part of his claim may be particularly questionable.

 

[guyzeur]

It will end up in a non disclosure agreement.

 

[WarriorofTime]

A few points after reading that article.

It's standard procedure to reject a QO. Any player who has had any success during their entry level deal won't take a 2nd contract at league minimum. If at the time of the offer Newport was unaware that Formenton was going to be investigated in the sexual assault complaint, it's not negligence on their part to advise their client not to take the low-ball offer. No one takes a league minimum deal after putting up 32 points in their rookie year, especially on a team that had a lot of capspace. If shortly after the rejection it became known internally in Ottawa that Formenton was a likely rapist, Newport lost all their leverage and Ottawa is thankful that there was no contract singed. Newport can't be held liable if something unforeseeable (assuming Newport was unaware of Formenton's likley pending crimanl charges) like that happened after the initial rejection. The fact that in his pleadings Formenton thinks that had he signed his QO he could have then signed an extension in 2023 is ridiculous. There is no way Ottawa would want him under contract a day longer than they were legally required to do so.


Lastly, the fact that he's working construction is his own fault. They'd probably take him in the KHL or VHL, like some of his other "buddies".

Agent can say not signing the QO is very normal. That's basically not negligence per se. Nobody signs Qualifying Offer. Formenton's damage claim also doesn't make a lot of sense. They didn't not sign him becuase he didn't sign a QO, everyone knows why they didn't extend him.

 

[SirKillalot]

First off, Westhead is a terrible writer. He writes in a manner that makes things confusing. I don't know why he included that the agent-player agreement expired in July 2022 if Arnott was still representing Formenton for years after. Unless there's some context where it's relevant, which Westhead didn't provide, it just confuses the reader until later in the article discusses when the relationship ended.

As far as common knowledge, things like the Dec 1 cutoff date might be common knowledge here but it might not be common knowledge for players who have agents looking after stuff like that. A player doesn't have to do his due diligence on that because he has an agent who is supposed to do that for him.

Well to the first part, this happens all the time in other sports where players say "get me something and I will sign with you / I will re-sign with you". Not surprised if the same case here, even if the NHL rules regarding agents are quite strict.

So there could very well be a situation where he was without agent, but given their past they were trying to help him and then later on they also ended that part. That's more on the player than agent/agency.

To the second part. Formenton is (was, now a construction worker) a professional player trying to have a long pro career, I would think and easily argue its a much bigger chance he should care about and know this than any other person not being a pro on this forum, especially as it has been out in the media on multiple occasions every year about different players if not signed by certain date, meaning December 1st, cannot play for the rest of the season in the NHL.

 

[hockey20000]

don't be a rapist and then this doesn't happen? don't feel sorry for him one bit and i hope the judge laughs at it then throws it out.

 

[seanlinden]

It's not mentioned in the article, but I feel like the "subtext" is going to play a massive role here.

Did Ottawa know about the allegations, and say to themselves, we're just going to do the bare minimum (qualifying offer) to retain his rights? If so, when did they find out?

It would be part of Newport's fiduciary duty to inform Alex of the impending expiry of his contract with them, and the implications of that... did they do so?

Is it common practice for agents to continue to represent clients after their deal expires?

Did Newport know about the allegations? and if so, did that play into the decision to not get him to re-up a represtation agreement.

If Ottawa didn't know about the allegations until, say, August 2023, you could, in theory, argue that it was Newport's fiduciary duty to ignore these impending charges... to advise him to accept the qualifier in summer 2022, and negotiate a new deal in January 2023.

But as Newport, you could also argue, that if you knew about this potential ticking time bomb, that it was your fiduciary duty to get him a multiyear deal in summer 2022, and not just accept the qualifer.

 

[KrisLetAngry]

Agent can say not signing the QO is very normal. That's basically not negligence per se. Nobody signs Qualifying Offer. Formenton's damage claim also doesn't make a lot of sense. They didn't not sign him becuase he didn't sign a QO, everyone knows why they didn't extend him.

30 points 18 goals. Yea I am telling my player we can get more.

I don't wish him any luck and it's going to be hard to prove that they didn't meet expectations when representing him.

Just don't be a shitty human and you'd make that 20 million+ working.

 

[Crow]

It was edited like 5 minutes before he quoted it. I posted it, immediately edited it.

So he edited your quote back to what it was?

 

[Leafs87]

20.5 mill projected earnings is steep based on his results. He’ll likely want to have this settled before his criminal standing is released because he’ll have no case if he’s deemed ineligible to ever play again

 

[tarheelhockey]

To the second part. Formenton is (was, now a construction worker) a professional player trying to have a long pro career, I would think and easily argue its a much bigger chance he should care about and know this than any other person not being a pro on this forum, especially as it has been out in the media on multiple occasions every year about different players if not signed by certain date, meaning December 1st, cannot play for the rest of the season in the NHL.

Nevertheless, it’s the agent’s contractual duty to communicate these things to him. If that doesn’t happen and the player makes contract error as a result, he has a case against his agent.

 

[Garbageyuk]

Isn’t he a construction worker now? Lmao

And people on here were low key praising him for not playing like the other guys since the charges.

Turns out it wasn’t by choice lol. Hopefully the judge smacks down this bullshit, and Alex finds out while he’s in the port-a-John freezing his ass off on some construction site this winter.

 

[SirKillalot]

Nevertheless, it’s the agent’s contractual duty to communicate these things to him. If that doesn’t happen and the player makes contract error as a result, he has a case against his agent.

Yes, but if the agreement between them expired its legally not.
Even though they can still advice him if he wants to take the advice. But, he should have signed extension with them then.

 

[Shocker]

I hope Formenton has to pay all of the legal fees of this case when he eventually loses

 

[tarheelhockey]

Yes, but if the agreement between them expired its legally not.
Even though they can still advice him if he wants to take the advice. But, he should have signed extension with them then.

The important thing is what was said or not said when the advice was offered. The agreement expired a couple of weeks after the start of free agency. If prior to its expiration Arnott sat down and laid out their options for negotiating a contract, then whatever advice he gave them at that time can come under scrutiny by a court.

The suit alleges that he advised Formenton to reject the QO and wait for Ottawa to follow up with a better offer. Did he tell Formenton what his options would be if Ottawa didn’t offer anything further? Were Formenton’s choices influenced by what was/wasn’t disclosed to him at that time? Were Formenton’s later actions a direct result of the advice he received in July, or no? That’s for the court to decide. But based on what we know now, it’s not easy to say how strong Formenton’s case is.

 

[tucker3434]

What an absurd number. Even if they did botch his QO, it's not like he's tearing it up in Europe right now. He's doing construction. I know that's just how lawsuits work, but it sure does make him look like an idiot.

 

[BonMorrison]

sounds like he was asking for it

 

[EpochLink]

It's so cold in the D

 

[Golden_Jet]

So he edited your quote back to what it was?

lol apparently
2 posters, were able to quote the original before the edit happened.

 

[Dr Quincy]

Oh his deposition would be very interesting, when the agent's lawyers try to show there was a reason he couldn't get a contract. In a criminal trial he doesn't have to testify or be deposed. In a civil trial.... here we go.

 

[seanlinden]

20.5 mill projected earnings is steep based on his results. He’ll likely want to have this settled before his criminal standing is released because he’ll have no case if he’s deemed ineligible to ever play again

The criminal case may not have a huge bearing here...

If Formenton can argue that, had his agent acted "properly", he would have been able to sign a 4 year, $20m deal, or even, a 5 year, $20m deal... Ottawa would have been on the hook for that, regardless of the outcome of his criminal trial.

Sure, there may have been cap shenanigans, attempt to terminate, etc.. but at the end of the day, he would have still gotten paid.

 

[SirKillalot]

The important thing is what was said or not said when the advice was offered. The agreement expired a couple of weeks after the start of free agency. If prior to its expiration Arnott sat down and laid out their options for negotiating a contract, then whatever advice he gave them at that time can come under scrutiny by a court.

This I agree with, if it happened before 12th July IF that information about the agreement expiring is correct.

The suit alleges that he advised Formenton to reject the QO and wait for Ottawa to follow up with a better offer. Did he tell Formenton what his options would be if Ottawa didn’t offer anything further? Were Formenton’s choices influenced by what was/wasn’t disclosed to him at that time? Were Formenton’s later actions a direct result of the advice he received in July, or no? That’s for the court to decide. But based on what we know now, it’s not easy to say how strong Formenton’s case is.

This I would also agree to. But at the same time we cannot assume players are completely stupid. Apply this to any other work, and you have to think of it as if you reject an offer there is a chance there isn't another one coming. There is a risk there of that happening. Obviously with it being sport and being a restricted agent there is some differences here compared to other professions.
Given the size of the agency and how long they operated I think its fair to say they would have given the possible outcomes in some outline to Formenton as they been through it many times before.

They could surely have said something in the lines of we have good cards on the table and they surely could and would give better offer than that, or someone will offer sheet for him for a better offer. If that is the case, I wouldn't say its neglect by any kind.

And then it depends when everything around the rape case came out, cause that affects things a lot obviously.

For now its all speculations as we don't have all pieces of the puzzle.