Dumvervil debacle could result in litigation over agent fees

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As former Broncos defensive end Elvis Dumervil tries to become a current Broncos defensive end, he has fired his agent in the hopes of getting back in the good graces of the team.

Getting fired may not be the only problem for Marty Magid.

Magid signed Dumervil following the passing of Dumervil’s prior agent.  Gary Wichard, who died on the day the lockout started in March 2011, had negotiated Dumervil’s now-terminated contract.  Wichard’s estate remained entitled to all fees generated by the deal.

Per a source with knowledge of the manner in which agent fees are handled, the restructured deal that was supposed to be finalized on Friday would have resulted in Wichard’s estate and Magid sharing the fees going forward.  Now that Dumervil’s prior contract was terminated, Wichard’s estate will receive no fee for the deal that is negotiated by Dumervil’s new agents, Tom Condon and Ben Dogra of CAA.

And that could spawn litigation between Wichard’s estate and Magid.  Wichard’s executor will have to decide whether to pursue the matter, which at a salary of $8 million and a fee of three percent would have generated a total payment of $240,000 by Dumervil in 2013.

It’s unclear whether it’s a claim that would be filed with the NFLPA or via separate litigation channels.  Regardless, if the evidence suggests negligence by Magid in the finalization of the contract, Wichard’s estate could have a viable claim for the loss of its share of the fees that Dumervil would have paid under the contract that wasn’t finalized because the paperwork didn’t get to the Broncos on time.

26 responses to “Dumvervil debacle could result in litigation over agent fees

  1. Why are fax machines even still around? I understand that people are so used to them…but like the rotary dial phone, it is time to move on.

  2. If this actually becomes an issue, which I’m guessing it won’t, it will likely be resolved with a 100k check from CAA and a middle finger hidden behind the back.

  3. Hold on a second … the new agent can get sued because the Broncos chose to terminate the contract negotiated by the old agent?

    That only makes sense to lawyers.

  4. What if there’s a negative change in the money the Broncos were offering and the highest money Dumervil could get on the market?

    I’d suggest there’s a lawsuit waiting for that negative change in income, too.

  5. Dumervil is angry with the WRONG
    person.. Elway said right from the start of this whole thing that he didnt want to pay Dumervil his agreed apon contract. In Elway’s words the contract was OUT OF WHACK!! the way I see it the Bronco’s OWE Dumervil 12 million dollars. Elway jumped in front of the first camera he saw an put this whole thing in the media. Now Dumervil’s contract is up in the air
    and he has no team. thats funny cause thats exactly what Elway wanted to happen.

  6. contract says: Mar 17, 2013 8:34 AM

    Hold on a second … the new agent can get sued because the Broncos chose to terminate the contract negotiated by the old agent?

    That only makes sense to lawyers.
    ————————-
    No, the new agent can’t be sued. This is between the deceased agent’s estate (Wichard’s) and the agent who messed up (Magid).

  7. This is a case where our great commissioner needs to step in and say, hey a mistake was made and we are gonna correct it. Put Dumervil back on the Broncos and lets fix our dinosaur way of using fax machines. But he is too busy fining players for wearing the wrong sox.

  8. How did anyone read this article and think it said Dumervil’s original agent (Wichard, or his heirs since he has passed away) is likely to sue Dumervil’s new agents (Condon and Dogra)?

    The article is written in plain English. It doesn’t say anything about Wichard’s estate suing Condon and Dogra. It says in plain English that Wichard’s estate might sue Magid (the agent who was just fired by Dumervil).

  9. chi01town says:

    “Dumervil is angry with the WRONG
    person.. Elway said right from the start of this whole thing that he didnt want to pay Dumervil his agreed apon contract. In Elway’s words the contract was OUT OF WHACK!! the way I see it the Bronco’s OWE Dumervil 12 million dollars. Elway jumped in front of the first camera he saw an put this whole thing in the media. Now Dumervil’s contract is up in the air
    and he has no team. thats funny cause thats exactly what Elway wanted to happen.”

    Dumervil’s anger is properly directed.

    Your misguided notion is just plain wrong.

    Dumervil’s contract was not guaranteed, and as such, he could be cut at any time.

    The Bronco’s cut him and as a result incurred a $4.X mil cap charge for the unearned portion of Dumervil’s original signing bonus. That signing bonus was paid up front to Dumervil. He GOT the money.

    Bu Dumervil’s agent failing to get the paperwork in on time (and it doesn’t matter the method – so let’s all get off the fax comments) gave the Broncos had no choice but to cut Dumervil.

    The Broncos did exactly what both sides knew would happen if the paperwork wasn’t done.

    The Broncos wanted Dumervil (who wouldn’t?) and were willing to pay him for his services.

    Teams and players renegotiate contracts all the time (up and down). One of the key reasons is the salary cap space available.

    Both the Broncos and Dumervil were harmed by Magid’s screwup. Both have cases against him.

  10. Because faxed docs can be signed, faxed back, & serve as the temporary legal docs until the originals are received. To have this kind of problem looks bad for both parties. I can only imagine them dealing a house.

  11. skiss68 says:

    “This is a case where our great commissioner needs to step in and say, hey a mistake was made and we are gonna correct it. Put Dumervil back on the Broncos and lets fix our dinosaur way of using fax machines. But he is too busy fining players for wearing the wrong sox.”

    This is just wrong. The deadline to get this deal done was well known to all parties.

    The failure of Magid to process the paperwork PRIOR to the deadline is the reason for the problem – not the method of communication.

    The deadline expired, the Broncos had to act and it’s over.

    If they change the rules for this case, then you’ll be rewriting the rules all the time.

    If you have problems with Goodell, fine. But don’t blame him for enforcing very sound rules that apply to all players and teams.

  12. i just think its funny that this is an issue over 6 MINUTES. I know, rules are rules. but he could seriously blame the Fax machine over a 6 minute difference!

  13. That sounds stupid. Wichard dies, and continues to get fees related to that player because Magid took over the deal Wichard originally negotiated. So any extension of the original deal results in Wichard continuing to get money, instead of the agent who negotiated the extension.

    Sounds like the Metrodome deal where the old GM negotiated 10% of all fees related to revenue from suites, and even though the guy hasn’t had anything to do with the team for the past 40 years he still collects 10% of all suite revenue.

    If this clown Magid did in fact sabatoge the extension so he could get 100% of the fees for the new deal, rather then splitting them with Wichard, then Wichard should go after Magid for those fees and NOT Dumervill. Had nothing to do with the player. Sounds like the agent intentionally screwed up the deal so he wouldn’t have to split the fees with another agent. Why should Dumervill be responsible for any fees when it was Magid’s misconduct? Besides, the intention behind the delay is a moot point, the contract wasn’t submitted by the deadline so it isn’t a contract. It’s little more then a piece of paper. Wouldn’t seem right to hold Dumervill accountable for something his agent did.

  14. His agent will lose.

    No deal is no deal.

    He can only get agent fees if Dumervil is under a contract negotiated by him while having left for another agent.

    No contract means no agent fee for Magid.

    Fitting that Magid is his last name because “d” is one letter after “c” and with the “d” his last name can’t be “Magic”.

  15. “rollore says:
    Mar 17, 2013 9:47 AM
    Because faxed docs can be signed, faxed back, & serve as the temporary legal docs until the originals are received. To have this kind of problem looks bad for both parties. I can only imagine them dealing a house.’

    Scanned and emailed documents are accepted for many application as “legal”. This includes quite a few banks I used to do business with when I was a mortgage broker, including a couple who only accepted scanned and emailed docs as opposed to faxed docs.

    Electronic signatures are valid in almost every aspect of business these days. You don’t need a fax for the sig to be valid.

  16. @gtodriver
    Elway started this whole mess… The
    Broncos and Dumervil had a agreed apon and signed contract already in place… then Elway says the contract is OUT OF WHACK! now there is a problem with a fax that causes Dumervil to get fired and his contract is just void.. please.. Dumervil is angry with the wrong person, Elway pulled this crap and Goodell knows it

  17. don’t blame the fax machine and don’t make elvis into a victim. he knew that without a new he’d be released. if he really wanted to stay he wouldn’t have waited till the last 35 minutes till it had to be done to say so

  18. @chi01town

    Obviously you don’t understand how NFL contracts work.

    Literally dozens of renegotiated contracts have been successfully been handled properly this season.

    This happens every year. I don’t understand you venom towards the Broncos.

  19. Please. Please. Stop talking about something you know nothing about. There is and cannot be any cause of action between the old agent and Magid. There is not contract between them so there can be no breach of contract. Any negligence on Magid’s part was on his duties for his client, which was not the old agent. Any breach of fiduciary duty to to his principal which, again, is not the agent. And even if he intentionally sabotaged the contract so that any new contract fees would belong to him, i.e. tortious interference in contract, Elway said he was going to terminate the agreement unless the agreement is changed. Magid had no duty to do so. Dumervil had no duty to do so (see James Harrison). If Magid legitimately felt he could get a better deal, then again there is no interference because he was using his best judgment for his client. Add to the fact, that Magid ended up getting nothing out of any future deal, so again there is nothing to attach.

    Frankly, any negligence and breach of fiduciary duty was really done by the old agent and all agents who, for the sake of inflating numbers so that they would look better to other prospective clients, cause these ridiculous numbers to be included in out years which inevitably result in either the player being cut or the contract redone. What goes around comes around.

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