Fanatics VIP Chief Denies DraftKings Allegations Amid Legal Battle

In a legal tussle between sports betting giants, Fanatics’ newly appointed VIP chief, Michael Hermalyn, refutes allegations brought forth by DraftKings, terming them as “wrong and disappointing” and “false and fabricated.”

Former DraftKings Employee Denies Allegations of Data Theft Conspiracy with Fanatics CEO

The dispute took a legal turn when DraftKings filed a lawsuit accusing Hermalyn, a former employee, of engaging in a clandestine plot with Fanatics CEO Michael Rubin to pilfer customer data prior to his transition to a betting executive role at Fanatics. The legal battle escalated with a 16-page filing in a Massachusetts court, as reported by Front Office Sports.

In response, Hermalyn countered DraftKings’ assertions in a declaration submitted to federal court, denouncing the claims as “completely false and fabricated.” He expressed shock and disappointment at the severity of the accusations, citing his anticipation of aggressive tactics from DraftKings based on prior experiences.

Addressing specific allegations, Hermalyn dismissed DraftKings’ claim regarding his purported visit to Fanatics’ Los Angeles offices, asserting that he was instead in Pennsylvania meeting with Rubin. He clarified that discussions regarding his role at Fanatics transpired after January 27, countering DraftKings’ insinuation of premeditated collaboration.

Moreover, Hermalyn rebuffed DraftKings’ accusation regarding his reasons for travel, emphasizing the emotional turmoil following the loss of a friend to cancer, which coincided with a pivotal career opportunity at Fanatics.

DraftKings Levels Allegations of Misconduct Against Former Executive Amid Legal Dispute

DraftKings, however, maintains its stance, alleging that Hermalyn’s departure was strategically timed to inflict damage, particularly during the lead-up to Super Bowl 2024. The company asserts that Hermalyn clandestinely obtained confidential information, including business plans, to leverage in his new role at Fanatics.

Amidst the legal standoff, DraftKings has also levied additional allegations against Hermalyn, including claims of inappropriate behavior towards a female colleague during his tenure.

Fanatics has responded to DraftKings’ allegations, dismissing them as baseless and attributing them to resentment over Hermalyn’s departure. A spokesperson for Fanatics characterized DraftKings’ actions as “sour grapes,” suggesting an attempt to tarnish Hermalyn’s reputation.

At the same time, Hermalyn has filed a lawsuit challenging the enforceability of non-compete clauses in his contract, arguing they are overly restrictive. 

DraftKings contests the lawsuit’s jurisdictional grounds, insisting it should be heard in Massachusetts, not California, where Hermalyn now resides.