Former Kentucky basketball star sues famed NBA agent over $58 million in ‘lost’ money
Former University of Kentucky basketball star Nerlens Noel has sued famed NBA agent Rich Paul, alleging that Paul cost him $58 million in lost money on an NBA contract, according to a lawsuit filed this week in a Texas district court.
The $58 million loss occurred when Paul convinced Noel to turn down a four-year, $70 million contract offer from the Dallas Mavericks, according to Noel’s initial complaint. Noel subsequently earned only about $12 million on his contracts in that time frame, according to the lawsuit.
Noel repeatedly signed smaller short-term contracts while Paul was representing him. But shortly after he ended his relationship with Paul and the agency Klutch Sports, Noel signed a $32 million contract with the New York Knicks. It was reportedly the largest contract offer he had since the $70 million offer.
“Had Paul made any effort to work on Noel’s behalf from 2017 to 2020, Noel would not likely have been forced to sign a series of contracts consisting of qualifying offers and league minimum deals that were well below the fair market value for Noel’s service,” Noel’s attorney wrote in the initial complaint in the lawsuit.
Neither Klutch Sports nor Rich Paul – both defendants in the lawsuit – had filed a reply to Noel’s allegations in court yet.
Noel: Agent promised big money but didn’t work to secure deals
The former Wildcat alleges that Paul recruited Noel to sign with his agency, Klutch Sports, by telling him that he was a $100 million-caliber player and Paul “would get him a max deal,” Noel’s lawsuit alleges.
The conversation between Paul and Noel allegedly took place at Ben Simmons’ birthday party in Los Angeles in 2017, according to court records. Simmons, an NBA star, is one of Paul’s several high-profile clients.
The two were sitting next to each other during dinner at the party when Paul told Noel during the conversation that he should end his relationship with Happy Walters, who was his agent at the time. Noel did and signed with Klutch Sports.
Paul is the founder, CEO and a board member of Klutch Sports, according to the lawsuit. Klutch Sports represents some of the most high-profile NBA players, including former Wildcats like Anthony Davis and John Wall. LeBron James, Trae Young and Draymond Green are also clients.
Klutch Sports was managing more than $1.3 billion in contracts in 2020, according to the lawsuit.
After signing Noel to the agency’s roster, Paul allegedly convinced Noel not to sign the four-year, $70 million deal with Dallas. Noel instead signed a “qualifying offer” with the Mavericks, which would pay him $4.1 million for one year, according to the lawsuit.
Mavericks owner Mark Cuban said that Noel “bet on himself” by turning down the four-year deal. If Noel played well in that one year, he could get an even bigger contract.
“Noel initially played well for the Mavericks and was largely considered a rising star in the league,” Noel’s attorney wrote in the lawsuit. “However, by December 2017, Noel tore a ligament in his thumb and had surgery to repair the ligament and was forced to miss 42 games.”
Noel’s injury in the 2017-18 season caused him play only 30 games that year. He averaged about 4.5 points, 5.6 rebounds, 1 steal and 0.7 blocks per game.
“Paul began to lose interest in Noel as a client” after the 2017-18 season, Noel alleged in his lawsuit.
“During the free agent season which began on July 1, 2018, and after Noel’s one-year contract with Dallas expired, neither Paul nor anyone at Klutch Sports presented any real proposals to Noel in terms of strategies or ideas” on how Noel might secure a “long-term contract or even significant contract for the following season,” Noel’s lawsuit read.
Less than one year after turning down a $70 million contract, Noel signed with the Oklahoma City Thunder on a league-minimum deal, according to his lawsuit. It was for two years and $3.75 million. There was a player option in the contract which allowed Noel to opt out of the second year of his deal and pursue other opportunities if he wanted.
Noel averaged 5 points, 4.2 rebounds, 1 steal and 1.2 blocks per game as a bench player in his first year with Oklahoma City.
“Neither Paul nor Klutch Sports made any effort to try and secure contracts or deals on Noel’s behalf,” after that season ended, Noel alleged in his lawsuit.
Noel signed another one-year minimum contract with Oklahoma City after “Paul’s failures as an agent and refusal to do any work on Noel’s behalf,” Noel alleged in his lawsuit.
Noel’s numbers improved in the 2019-20 season with Oklahoma City. He averaged 7.7 points per game and 5 rebounds and shot about 68.5 percent from the field.
NBA agent ignored teams trying to sign former UK star, player alleges
Noel alleged that he received no offers on the first day of free agency in 2020. He had contemplated terminating his business relationship with Klutch Sports at that point.
“Noel later learned that representatives from the Houston Rockets and the Los Angeles Clippers were trying to contact Paul, but that Paul was not taking or returning those calls,” Noel alleged in his lawsuit.
On the second night of free agency in 2020, talks began between the New York Knicks and one of Noel’s friends and advisers, according to the lawsuit. Noel eventually signed a one-year contract with the New York Knicks for $5 million. His lawsuit alleges that Paul “played virtually no role in” getting that deal done.
Noel alleged that his relationship with Paul “came to a tilt” in December 2020, after the one-year Knicks deal was completed because he found out Paul had a history of mismanaging his less prominent clients.
“The belief was that Paul and Klutch Sports were only focused on serving their “marquee” clients and did not have the capacity to provide competent service to other clients such as Noel,” Noel’s attorney wrote in the lawsuit.
Noel signed with George Langberg of GSL Sports Agency after he terminated his contract with Klutch Sports, according to the lawsuit. Noel was a key defensive piece for the Knicks last season, and the team made the playoffs for the first time in eight years.
“With Paul no longer in the picture, Noel signed a three-year deal with the Knicks for a total of approximately $32 million,” Noel’s attorney said in court records.
Noel alleges that Paul was negligent and failed his fiduciary duty in representing Noel. Noel has asked the court for financial damages and attorneys’ fees and costs, according to court records.
This story was originally published August 25, 2021 at 9:12 AM.