Malik Beasley just had one of his best seasons statistically of his career with the Detroit Pistons in the 2024-25 NBA season, averaging 16.3 points, 1.7 assists, 2.6 rebounds, and shot a career-high 41.6% from three-point land. Beasley played a major role in helping the Pistons end a six-year playoff drought, helping the Pistons reach the NBA playoffs this season, and Beasley was a finalist for the NBA’s Sixth Man of the Year Award this season. But now Beasley has run into some potential legal trouble as he finds himself being sued by his former agency, Hazan Sports Management (HSM).

Specifically, HSM, now Beasley’s former agency is suing Beasley for breach of contract and related claims, where they allege Beasley owes at least $1 million in damages. HSM claims that when Beasley became a client on November 27, 2023, by signing him to a standard player agent contract (SPAC), they also paid Beasley $650,000 in advance as part of a separate player marketing agreement which granted HSM exclusive marketing rights that would be for a term of four years. HSM alleges after helping Beasley resuscitate his career by securing him a one-year, $6 million contract with the Detroit Pistons, Beasley fired HSM as his on-court representation earlier this year in February and breached the exclusivity provisions of the marketing agreement when he hired Brian Jungreis of Seros Partners to serve as his on-court agent and marketing representative just 15 months into the four-year agreement as HSM alleges.

HSM states that when they took Beasley on as a client, he was a player with “known issues,” issues that included financial ones. The substantial marketing advance of $650,000 to Beasley as the agency claims was to in part help those financial issues of Beasley and to become his exclusive marketing agent as HSM expected Beasley would turn around his career where Beasley’s marketing rights would become valuable and generate high commissions for HSM. The player marketing agreement included a liquidated damages clause that requires Beasley to pay HSM $1 million in the event that the agreement is terminated for any reason prior to the end of the four-year term. The liquidated damages clause of $1 million is one of the claims HSM is seeking judgment on against Beasley.

It remains to be seen whether this liquidated damages clause in this matter between Beasley and HSM will be enforceable under New York law. If the case does move forward, an anticipated defense that Beasley can bring forward is that the liquidated damages clause in this contract with HSM is not fair and reasonable, therefore being an unenforceable penalty clause as New York law requires liquidated damages clauses to bear a reasonable relation to anticipated or actual damages in order to not be a contract provision for an unreasonably large liquidated damage amount which is void as a penalty. To counter this, as HSM has already stated this in the complaint, is that both parties agreed and accepted that this liquidated damages provision in the amount of $1 million in the event of a breach was “fair and acceptable in the light of the amount of the Marketing Advance and the risk assumed by Marketing Agent with respect to the Marketing Advance.”

The player marketing contract states that “any and all disputes” arising out of it “shall be adjudicated” by a New York court. This is important because this leads the dispute of the marketing agreement to litigation instead of arbitration which is a standard clause in all SPAC’s where the arbitration clause covers disputes between a player and their agents concerning their contractual relationship. Notably, HSM is not alleging that Beasley breached his SPAC with the agency, but rather tying the breach claim to the marketing contract, so in this instance Beasley would not be able to have the complaint dismissed through claiming that it must first be heard by an arbitrator.

This case highlights and shows the importance of enforceability of such agreements, and the factors that can lead to one being successful in dismissing such a suit or being successful in recovering damages from the other side. It also shows what can entice players to sign such player-agent contracts, such as marketing guarantees, cash advances, and other inducements.

As of now Beasley has not responded to this suit brought against him by HSM and no lawyer has appeared on his behalf on this matter.

Romen Richardson is a rising 3L at Howard University School of Law in Washington, DC. He aspires to be a prominent sports & entertainment attorney after graduating law school, and also hopes to one day be an NBA Agent. You can follow him here on LinkedIn.