Newport Beach sports agency Steinberg Moorad & Dunn Inc. and parent company Assante Corp. filed suit last week against David Dunn, a former partner in the high-profile firm.
The lawsuit was filed in Los Angeles Superior Court after talks to resolve contractual issues between Dunn and Assante broke down. In the suit, Dunn is accused of conspiring to take clients from Steinberg, Moorad & Dunn and sign them to his new firm, Athletes First.
In separate action, a similar suit was filed in Orange County Superior Court against Brian Murphy, a former associate at the Steinberg firm who left to join Dunn at Athletes First.
The suit against Murphy, however, does not include the charge of fraud, which is one of the nine causes of action stated in the case against Dunn, according to Deanna Allen, Winnipeg, Manitoba-based Assante’s director of communications.
Steinberg, Moorad has received eight termination letters from NFL clients since Dunn left, Allen said. She said Dunn had signed a five-year contract to stay with the firm as part of Assante’s $120 million acquisition of Steinberg, Moorad in 1999.
The contract, she said, included a non-compete clause, which reportedly barred Dunn from starting a sports agency within two years of leaving Steinberg. It also included “increased compensation” for Dunn, she said.
“Apparently, that wasn’t enough for Mr. Dunn,” Allen said.
In April, Dunn and two associates set up a Newport Beach office while still with the firm. Friction between Dunn and his partners led to the physical separation. Dunn reportedly represents about 40 of the 150 sports clients under contract with Steinberg.
Assante last week also said it plans to unite its four sports agencies,representing the four major team sports,under the Assante brand this year. The combined entities are expected to create one of the largest sports agencies in North America.
In a release, Assante said Jeff Moorad in Newport Beach would continue to oversee the baseball practice, Los Angeles-based Dan Fegan will head the basketball practice, Mike Gillis will lead the hockey practice and Eugene Parker will manage football.
Leigh Steinberg, one of the most recognized sports agents, will focus “primarily on being CEO and chairman” of the Assante Sports Management Group, Allen said. But she said that does not mean he will give up his role as an agent.
The Sports Management Group is part of Assante’s Sports and Entertainment Group and maintains agencies in Los Angeles and New York, besides Newport Beach.
Allen said the integration and branding of the sports firms does not mean relocation for any of its subsidiaries at this time. But she said down the road there could be more concentration of business in Orange County as a result of the restructuring. n
