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TEMPE, Ariz. -- Cardinals rookie wide receiver Marvin Harrison Jr. was set to earn $1.05 million between April 1, 2024 and March 31, 2026 from Fanatics in exchange for game jerseys and more than 35,000 autographs, according to the term sheet between the two parties that is at the center of the lawsuit that Fanatics filed in May.
Details of the term sheet were made public for the first time through the New York State Supreme Court, where the lawsuit was filed. The financials of the term sheet were redacted in the initial filing of the lawsuit.
Fanatics filed a lawsuit against Harrison on May 18 for breach of contract. In the suit, Fanatics said Harrison has refused to fulfill his obligations to the deal while he also "publicly asserted" that the contract does not exist.
According to the document, which was named and described as "binding term sheet" throughout, "each party acknowledges and agrees that (i) it shall be legally bound by the terms and conditions of this Term Sheet." However, the term sheet also said that "promptly" after signing the term sheet, the two sides would "work together in good faith to negotiate an agreement to combine, amend and restate" the deal.
In late June, Fanatics' attorneys asked the court to seal the binding term sheet and "certain redacted portions" of the lawsuit that "references its provisions." Fanatics attorneys explained in their request that the term sheet contains "sensitive, non-public commercial information related to Plaintiff and Defendants, including the specific terms of their confidential contractual arrangement, the publicization of which could negatively impact their businesses."
On July 9, Harrison's attorney filed a motion that said Harrison did not object to the term sheet being sealed but added that he does "not consent to their being a binding contract."
The term sheet, which was signed by Harrison on May 16, 2023, and by Fanatics general counsel Shiri Ben-Yishai two days later, was broken into two phases. The first -- Phase 1 -- stretched from the day of the signing to March 31, 2024, before Harrison was drafted by the Cardinals. Phase 2 is from April 1, 2024 to March 31, 2026.
The term sheet, which stated that it will "include exclusive, worldwide trading card (physical and digital) and trading card autograph right," called for Harrison to wear and give to Fanatics 30 jerseys, which the term sheet said would be provided by Fanatics, in the 2024, 2025 and 2026 seasons. It also called for Harrison to produce a minimum of 35,000 autographs with a Fanatics option for 15,000 more.
During Phase 1, Harrison was required to follow 10 fans on social media, post one short-form promotional video and make one public appearance. However, during Phase 2, Harrison would be required to make five social media posts, follow 10 fans, post one short-form promotional video on social media, have one "media capture day" for still photos and video, make two public appearances, make one 60-minute fan experience, make one Fanatics Live virtual appearance and five trading card swaps. Harrison would also be required to attend private signings and participate in fan meet and greets at each private signing.
Harrison was guaranteed $1.05 million during Phase 2, which was broken into an $800,000 cash lump sum and $250,000 in equity, meaning Fanatics shares.
Harrison's autograph fees during Phase 2 of the term sheet were to be $30 per autograph and $10 per inscription. If he had been the first- or second-overall pick, his per-autograph fee would've increased.
The term sheet gives Harrison permission to sign up to 100 autographs for fans, teammates and charitable organizations as long as he doesn't get paid for them. Had Harrison been the first-overall pick in April's NFL draft, he would've received a $100,000 bonus from Fanatics, according to the term sheet.
He can still potentially receive three more bonuses: $100,000 for being named the Offensive Rookie of the Year, $100,000 for being named NFL MVP, $100,000 for winning the Super Bowl as a starter or $200,000 for being the Super Bowl MVP.
According to the term sheet, should Harrison be traded from the Cardinals, his guarantee could be reduced. The term sheet could also be terminated if Harrison is charged with a felony or a crime "involving moral turpitude, or commits any illegal, egregious or other offensive act that Fanatics believes, in its reasonable sole discretion, subjects Fanatics to material public disrepute, scandal or ridicule."
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