Jack Nicklaus Defamation Lawsuit: Verdict, Bankruptcy, and Settlement

Jack Nicklaus’s defamation lawsuit against Nicklaus Companies ended in October 2025 with a Florida jury awarding the 85-year-old golfer $50 million after finding the business that once bore his name had spread false claims about his involvement with LIV Golf and his mental fitness. Nicklaus never collected the money. The company filed for Chapter 11 bankruptcy within weeks, and by March 2026 Nicklaus had agreed to forfeit the judgment as part of a settlement that let his family reacquire the business for $35.7 million.¹²

How the Dispute Started

In 2007, Nicklaus sold his equity in his golf enterprises to a group led by billionaire banker Howard Milstein for $145 million. The transaction created Nicklaus Companies, LLC, which took over his course design business, name-licensing operations, and the “Golden Bear” trademarks. Nicklaus stayed on as an employee and board member.¹

The relationship deteriorated. Nicklaus stepped back from day-to-day leadership in 2017 and left the board entirely in May 2022. Shortly after his departure, Nicklaus Companies sued him in New York, alleging he had diverted business opportunities and breached his contractual obligations. That New York suit set the stage for the defamation claims that followed.¹

What Nicklaus Claimed the Company Said About Him

Nicklaus filed suit against Nicklaus Companies, Milstein, and executive Andrew O’Brien on April 21, 2023, in Palm Beach County, Florida. He alleged two categories of falsehoods.³

The first involved LIV Golf. According to Nicklaus, the company told national media outlets he had entertained a $750 million offer to serve as the public face of the Saudi-backed league. His version was that a Nicklaus Companies executive had arranged a 2021 meeting with Golf Saudi representatives to discuss course design work, and that he was recruited for a leadership role during that meeting and declined immediately because he considered the PGA Tour central to his legacy.⁴

The second involved his mental fitness. Nicklaus alleged company officials told others he was suffering from dementia and could no longer manage his affairs, suggesting his family needed to “have the keys taken away.” He said both sets of claims were fabricated and were pushed to outlets including USA Today and Sports Illustrated to paint him as someone who had sold out the PGA Tour for Saudi money.⁵³

Getting to a Florida Jury

The defendants first tried to move the case out of Florida. They argued that a forum selection clause in the company’s LLC agreement required all disputes to be litigated in New York. In June 2025, Florida’s Fourth District Court of Appeal rejected that position, holding that the defamation claims did not arise from the LLC agreement and belonged in Florida court.⁶

Trial went forward before Judge Reid P. Scott II in West Palm Beach. A six-person jury heard closing arguments on October 20, 2025. Nicklaus was represented by Eugene Stearns of Stearns Weaver Miller. Defense attorney Barry Postman argued no defamation had occurred and that the conflict was a business dispute causing no real reputational harm.⁷⁸

The Verdict

The jury found that Nicklaus Companies had “actively participated in the false publishing of facts” that damaged Nicklaus’s reputation and exposed him to “ridicule, hatred, mistrust, distrust or contempt.” It concluded the company had acted with actual malice and awarded $50 million in damages. The jury cleared Milstein and O’Brien of personal liability.¹⁴

A central legal question was whether the litigation privilege, which normally shields statements made in court filings from defamation claims, protected the company. The trial court found the privilege forfeited. According to the court, Nicklaus Companies had hired a public relations professional to maximize the New York complaint’s visibility, and employees sent the filing and related articles to clients with additional false statements attached. Because the company used its own court allegations as a weapon outside judicial proceedings, the privilege did not apply.⁹

Bankruptcy Put the Judgment at Risk

The $50 million did not translate into a payday. In November 2025, Nicklaus Companies filed for Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware and announced it would appeal the verdict. Its financial picture was severe: roughly $750,000 in cash against approximately $550 million in total debts, nearly $500 million of it owed to financial lenders.¹⁰¹¹

Unlike personal bankruptcies, where defamation judgments are often non-dischargeable, a corporate Chapter 11 case can potentially wipe out such a judgment entirely. A key issue was the nature of Milstein’s $476 million stake. The original 2007 secured convertible loan had ballooned with compounding interest, and whether the resulting position counted as secured debt or subordinate preferred equity would determine where Nicklaus stood in the creditor line.¹⁰

Settlement and Family Buyback

Rather than litigate the bankruptcy to conclusion, the parties settled. Nicklaus agreed to give up the $50 million judgment. Milstein waived a significant portion of his pre-petition claims. Both sides agreed to end all litigation, including the pending appeal.²

The company’s assets went to auction. After a multi-day bidding process, the winning bidder was 20 Majors, LLC, an investment group led by Nicklaus and his family with TWG Global Holdings, the investment vehicle of billionaire Mark Walter, and Nicklaus Brown & Co., led by Nicklaus’s son Gary and Rory Brown. The purchase price was $35.7 million, with a company Gulfstream aircraft sold separately for more than $7.35 million.¹²

The Delaware bankruptcy court approved the sale on March 9, 2026, and the deal closed on March 26, 2026. The transaction transferred substantially all of Nicklaus Companies’ core assets, including its licensing and course design businesses, and included a global resolution of the litigation among the company, Milstein, and Nicklaus.¹³ In a statement posted after the acquisition closed, Nicklaus described the four-year fight as something he pursued “for my legacy and for my family.”¹⁴

1
ESPN. Jack Nicklaus Awarded $50 Million in Defamation Lawsuit
2
Cole Schotz. Golf Co. Approved for $35.7M Ch. 11 Sale to Nicklaus Family
3
RPJ Law. Jack Nicklaus Wins $50 Million in Defamation Case Against Namesake Company
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The Guardian. Jack Nicklaus Wins $50M Defamation Verdict
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Golf Digest. Jack Nicklaus $50 Million Win
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Findlaw. Milstein LLC v. Nicklaus, No. 4D2024-3188
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Palm Beach Post. Jack Nicklaus Defamation
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Missouri Lawyers Media. Jack Nicklaus Defamation Lawsuit Verdict Florida
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Benesch Law. Jack Nicklaus’s $50M Redemption and the Limits of the Litigation Privilege
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Bloomberg Law. Nicklaus Co. Bankruptcy Kicks Off High-Stakes Fight for Control
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Wall Street Journal. Golf Services Business Founded by Jack Nicklaus Files Bankruptcy
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Cassel Salpeter. Cassel Salpeter Advises in Landmark Chapter 11 Sale of Nicklaus Companies
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Weil. Weil Advises Nicklaus Companies in Sale to Jack Nicklaus-Backed 20 Majors
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Nicklaus.com. For Legacy and Family