The Milwaukee Brewers have settled a lawsuit over ATI Physical Therapy’s former sponsorship of the team and decision to not continue their relationship.
The team sued ATI in early 2017 seeking $1.7 million for breach of contract, alleging the Bolingbrook, Illinois company and sponsor since 2009 had agreed to a new three-year sponsorship deal. ATI argued it had never actually agreed to the new deal and sued its consultant, Paragon Marketing Group.
ATI alleged Paragon was brought on to advise the company on the sponsorship but was not authorized to negotiate on its behalf. ATI’s complaint says the Brewers sent Paragon a proposed contract in October 2016 and Paragon forward the proposal to ATI. When ATI sent it back with proposed changes, Paragon sent it on to the Brewers.
All three sides engaged in mediation of the case earlier this month. A court filing Wednesday indicated the case had been settled. An attorney for ATI said only that the parties “have amicably resolved their disputes and that the case will be dismissed.” A Brewers spokesman declined to comment and a Paragon attorney referred questions to the Brewers.
In a filing before mediation, an attorney for Paragon said the Brewers’ attorney told him the team would only be seeking $570,000 for the first year of the three-year contract. None of the attorneys confirmed if the settlement involved the payment of that amount.
The deal ATI was negotiating with the Brewers called for the company to pay $570,000 in 2017, $581,400 in 2018 and $593,028 in 2018. In exchange, ATI would have been designated as the “Official Physical Therapy Partner of the Milwaukee Brewers,” having naming rights to the right field seating area known as the ATI Club, four field level infield season tickets, a $5,000 ticket credit for the season and a variety of other perks, including two ceremonial first pitches.
