Jack Nicklaus awarded $50 million in defamation lawsuit

A Florida jury on Monday awarded Jack Nicklaus $50 million in his defamation lawsuit against Nicklaus Companies, which is owned by billionaire banker Howard Milstein.

Nicklaus, 85, filed the lawsuit in response to statements that Milstein and other Nicklaus Companies officials made in a previous lawsuit in a New York court.

In the defamation lawsuit, Nicklaus claimed the defendants suggested that he had considered a $750 million deal to become the face of the Saudi Arabian-financed LIV Golf League and disseminated those false claims to media outlets.

“It’s always hard in a defamation case to prove damages to reputation, because in particular for a guy like Jack, it’s always such a good one,” Nicklaus’ attorney, Eugene Stearns, told ESPN on Monday. “But I think what was important was the dispute that arose 3½ years ago when the company told the world that Jack was selling out the PGA Tour for the Saudi golf, when it was not true. So, we’re happy that Jack’s been vindicated.”

In court documents, the golfer’s attorneys wrote that a Nicklaus Companies official asked him to meet with Golf Saudi representatives in 2021 about designing a golf course in Saudi Arabia. During that meeting, Nicklaus learned that Golf Saudi wanted him to accept a leadership role in LIV Golf.

“According to Nicklaus, he had no interest in the offer and declined because he felt the PGA Tour was an important part of his legacy, and if the PGA was not in favor of a new league, he did not want to be involved,” the court documents said.

Nicklaus claimed the defendants also alleged he wasn’t mentally fit to manage his business affairs and was suffering from dementia.

“What they said was, ‘You need to have the keys taken away,'” Stearns said. “But the combination of all of that was unfortunate, and we’re happy that this is all soon going to be behind Jack, and hopefully the Nicklaus Companies will do fine, as well. But it was an unfortunate incident, and hopefully now it’s over.”

According to the Palm Beach Post, the jury ruled that Nicklaus Companies actively participated in the false publishing of facts that damaged the 18-time major champion’s reputation and exposed him to “ridicule, hatred, mistrust, distrust or contempt.”

The Post also reported the jury ruled in favor of Milstein and Nicklaus Companies executive Andrew O’Brien not being held personally liable.

Nicklaus Companies said it paid the legendary golfer $145 million in May 2007 for exclusive rights to his golf course design services and marketing, promotional and branding rights.

Nicklaus resigned from the company in 2017, triggering a five-year noncompete clause in the deal that prevented him from designing golf courses on his own. Nicklaus stepped down from the company’s board in May 2022.

Not long after, Nicklaus Companies sued Nicklaus and his company GBI Investors, alleging tortious interference, breach of contract and breach of judiciary duty against Nicklaus. The complaint alleged that Nicklaus had diverted opportunities away from Nicklaus Companies for his personal benefit.

At the time of that lawsuit, Nicklaus said in a statement: “The claims made by Howard Milstein are untrue. Our relationship has been a difficult one, at best. I have little doubt about the outcome, but I don’t intend to make this a public spectacle, if it can be avoided.”

A Florida arbitrator ruled in July 2024 that Nicklaus was no longer restricted by the noncompete clause and was free to design golf courses.

In April, New York Civil Division Supreme Court Justice Joel M. Cohen ruled that Nicklaus had the right to use his own name, image and likeness, while Nicklaus Companies owned the trademarks it purchased and could continue to sell apparel and equipment with Nicklaus’ name, “Golden Bear” moniker and logos.