Bad bet: Danish firm sues Globe over deal gone sour
Globe Media intends to contersue over ‘meritless’ claim
Boston Globe Media Partners is facing a lawsuit over a sports betting deal with a Danish company, which claims the Globe owes it more than $750,000 after the multimedia organization apparently broke the contract and went with DraftKings instead.
The Globe’s parent company fired back on Monday, calling the lawsuit “meritless” and added that they plan to file counterclaims against the Danish firm, Better Collective — which publishes online content about sports betting and gambling.
In the lawsuit filed in Suffolk Superior Court on Friday, Better Collective claimed that Globe Media had reached out to the company headquartered in Copenhagen to develop sports betting content for the website Boston.com ahead of the launch of legalized sports gambling in Massachusetts.
The two sides struck a deal in August, but it has gone sideways since.
“To induce BC to do business with it and pay it substantial fees, Globe Media held itself out as a willing, reliable, good faith and committed business partner,” the lawsuit reads. “As it turned out, Globe Media was the exact opposite.”
Boston Globe Media Partners in a statement on Monday said, “Better Collective failed to meet its obligations under the agreement, causing Boston Globe Media Partners significant harm.”
“BGMP intends to file counterclaims and prevail on this meritless suit,” the multimedia organization added.
According to the lawsuit, under the terms of the deal, Better Collective would produce sports betting content about the Massachusetts market and other legal sports wagering states. Better Collective would also leverage its commercial relationships to provide ads for sports betting operators.
Boston.com was required to develop, maintain and host a subsection of its website to display the betting content, according to the suit.
Globe Media did not keep up its end of the deal after getting paid, Better Collective claims.
“To date, BC paid Globe Media hundreds of thousands of dollars of fees which it did not earn, to which it is not entitled, and by which it has been unjustly enriched,” the lawsuit reads. “Globe Media’s breaches of the Agreement also caused BC to miss highly lucrative market windows and opportunities thereby causing BC additional damages.”
Meanwhile, the Globe was apparently working on a deal with DraftKings, according to the suit.
“On information and belief, Globe Media refused to negotiate because it wanted to end its relationship with
BC so that it could enter into and/or expand its business relationship with DraftKings on more favorable terms to Globe Media,” the lawsuit reads.
Better Collective terminated the deal in midMarch just a few days after mobile sports betting went live in the Bay State.
Better Collective is seeking damages in excess of $750,000, for the damages to be tripled, plus an award for attorneys’ fees and costs.