Monday, June 23 Athletes First, Inc., forced to file for bankruptcy ESPN.com news services |
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Still liable for more than $40 million in damages resulting from a November 1992 judgement, the sports representation agency Athletes First, Inc., has filed for Chapter 11 protection in the U.S. Bankruptcy Court in Santa Ana, Calif. The filing, by the firm that recently negotiated the first professional contract for top NFL draft choice Carson Palmer, has been anticipated for months. Athletes First is the representation firm founded by agent David Dunn, after he split from former partners Leigh Steinberg and Jeff Moorad, and currently has about 50 clients. A jury found last fall that Dunn breached his employment contract with Steinberg's firm and that Athletes First engaged in unfair competition by pirating away clients. The jury decided that Athletes First was liable for $20 million each in compensatory and punitive damages, and ordered Dunn to pay an additional $4.66 million. The judgement was only recently entered and that precipitated the bankruptcy action. In the bankruptcy filing, Athletes First listed assets of $10.7 million and liabilities of $49.8 million. Dunn and Athletes First have continued to do business and have said the bankruptcy will have no impact on the company. --Len Pasquarelli New York Giants: Cornerback Calvin Spears, one of the top defensive players from the recently concluded NFL Europe League season, has signed a one-year contract with the Giants. The deal is worth the rookie first-year minimum of $225,000, with no signing bonus. Spears, 22, played this spring with the Frankfurt Galaxy, after spending the 2002 summer in camp with the Cleveland Browns as an undrafted free agent. The former Grambling star has good size (6-feet-0, 195 pounds) and speed and was sought by several NFL clubs. He had three interceptions and seven passes defensed for Frankfurt and added 10 special teams tackles. --Len Pasquarelli Pittsburgh Steelers: The Pittsburgh Steelers on Monday signed former Arizona Cardinals defensive tackle Jabari Issa to a one-year contract. Details were not available, but it is believed that the deal is for the league minimum. Issa was a sixth-round choice of the Cardinals in the 2000 draft, played in Arizona for two years, then was acquired by the Houston Texans last spring in the expansion draft. He was released by the Texans and did not play in the NFL in 2002. With the Cardinals he had 39 tackles and one sack in two years. Playing for the Barcelona Dragons this spring, he had 24 tackles and one sack. --Len Pasquarelli
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