You breach, I teach

Nothing like a nice back rub after a long day’s work. I’ve even gone the route of getting it professionally done. I’ve had everything from a Swedish, Deep Tissue, and Hot Stone, to a sports massage—but I have never paid 100 million dollars for one. Yet, if we look deeper into the receipt, it may appear I didn’t pay 100 million for a massage at all. After all, I’m an NFL quarterback, and most of those things came for free. What I paid for, however, was the fee for buck-breaking. Yes, I said it! But don’t just take my word for it. Let me show you how contracts, whether in the NFL or with high-end beverage companies, leverage criminal and civil lawsuits placed on a person to get out of a bad deal.

Deshaun Watson and the Cleveland Browns’ Dilemma

Sept 9 wasn’t the best showing for Deshaun Watson, as it appeared the only thing he could throw correctly was a check for 100 million in the trash. As a fan of his ability to play football back in his Clemson days, I, like many others, am sad to see his career come to such a tragic state. I had hoped for a comeback, and he did make one—just not the one we expected.

After such a poor performance in his first game of the 2024 season, the Cleveland Browns found themselves in a tough spot. They still owed Watson more than 150 million over the next three seasons, and the dead cap hit would put them in salary cap hell for the foreseeable future. That meant two seasons of no production at the quarterback position because you don’t bench a player you paid 230 million dollars to. It’s like buying a 400-meter yacht and never leaving the dock. The Browns were stuck—until a miracle happened, and I do mean a miracle. Here comes the perfect situation for Cleveland.

Convenient Timing or Contract Leverage?

Cleveland Browns quarterback Deshaun Watson could be in danger of losing his job and the remaining money on his contract after new allegations of sexual misconduct surfaced on Monday, Sept. 9.

What’s the significance of this allegation? And remember, like all the scandals that followed him, it’s a mere allegation. No criminal charges have stood. If they had, the 230 million dollar contract would never have been signed.

I’m not here to claim his innocence or guilt, or that of anyone else I mention. I want to spark a different conversation about business contracts, leverage, and how far companies might go to exit bad deals. So, here’s an important question for you to answer: If you owed someone 150 million dollars and got no value in return, what would you be willing to do to get out of such an arrangement?

The Rise and Fall of Deshaun Watson

In 2020, following a great season, Watson and the Houston Texans were at an impasse. Watson’s relationship with the Texans quickly deteriorated, and he demanded a trade. Shortly thereafter, he was accused of sexual assault and misconduct in more than 20 civil lawsuits, which put his career on hold as he navigated the legal process and NFL discipline.

Because of his strained relationship with the Texans and his off-the-field issues, Watson missed 28 games over the next two seasons.

But on Dec. 4, after 700 days since his last NFL regular season pass, Watson returned to the field, making his first start with the Browns. He was looking to pick up his on-field career where he left off.

Doesn’t it seem strange that these 20 allegations of sexual misconduct surfaced only after Watson demanded a trade? Why didn’t they appear before? If these actions occurred, wouldn’t the accusers want their settlements as fast as possible? And why did 20 people all come out at once? Did they unionize? It’s important to note that none of these charges stuck, and for the Texans, they didn’t need them to. They just needed to punish Watson and make him behave.

New Team, Same Playbook

And now, less than 48 hours after the worst game of his career, another lawsuit alleging sexual assault mysteriously appears! Where did this new victim come from? Had she been living under a rock for the past four years? She could have easily joined the previous 20 women, right? But of course, there was no contract dispute or quarterback wanting a trade before now.

If you were the Cleveland Browns and saw what the Houston Texans pulled off, it’s no surprise that a new lawsuit appeared—just in time. What a miracle!

Mike Florio of NBC Sports' Pro Football Talk reported that a lawsuit for sexual assault and battery has been filed against Watson in Houston from an incident that allegedly occurred in 2020.

"This new case raises plenty of issues from the standpoint of the league and the Browns," Florio wrote. "It’s possible Watson could face further scrutiny under the Personal Conduct Policy. It’s also possible that a suspension—if one is imposed—could give the Browns a path toward voiding his remaining salary guarantees and ending the relationship."

Diddy’s Fight with Diageo: Another Case of Contract Leverage

But let’s say you don’t watch football or care about massages. Maybe you like a drink instead? After a long day, nothing beats a nice glass of Cîroc, right?

In May of last year, Diddy sued his former partners, claiming that racism at Diageo had stunted the growth of his brands, even asking him to take a backseat in marketing to downplay their reputation as Black brands (by the way, Diageo owns 35% of Hennessy). In September, the lawsuit was moved to the New York district court and became public.

But in November, Diddy’s ex-girlfriend Cassie Ventura filed a lawsuit of her own against him, alleging abuse and coercion. Though he and Cassie settled within 24 hours, the damage was done, and more accusers came forward.

This gave DeLeón the leverage to block the mogul’s request for a $15 million marketing budget for DeLeón. Both parties issued a joint statement revealing the terms of the settlement, though financial details are withheld. Diageo and Diddy have no ongoing business relationship with respect to Cîroc or DeLeón, which Diageo now solely owns.

As the lawsuits continued, Diddy stepped down as Chairman of Revolt, while many brands associated with his Empower Global marketplace distanced themselves.

The Real Game: Public Perception

Like Watson, Diddy gets no exoneration from me. But the goal of this article is to make you think. Don’t be fooled by headlines or public outcry. Ask yourself, why was this footage of Diddy from 2016 released now? Hotel security would have monitored him closely—this footage was likely bought and paid for. Wouldn’t it have been cheaper for Diageo to pay double for the tape, rather than paying Diddy what they owed him?

And much like Diddy, Watson’s accusers would cost far less than 150 million dollars. Incidentally, the lawyer for Watson’s “victims” was the next-door neighbor of—you guessed it—the owner of the Houston Texans.

Masterclass in Business, Not Morality

I don’t think we learned much about massages, Cîroc, or sexual assault in these cases. The real lesson is how public allegations are used to back out of deals that are no longer in someone’s favor. The real victims of leverage are us—the public—who they count on to do their battle cry. After all, none of these men are in jail or facing criminal charges. But neither are the bank accounts of the Houston Texans, Cleveland Browns, or Diageo Beverages being drained. Their mission is complete.

So I ask again, if you owed someone 150 million dollars and got no value in return, what would you do to get out of such an arrangement?

Whatever you think of Watson or Combs, this is a master class in business, not morality. At Colonial Scrip, we believe a good deal or bad deal happens at the point of contract signing. So, know your terms like you know your craft. And unless you are Robert Kraft, stay out of massage parlors!