Partnership Disputes in Business: Lessons from the Kelsey Brothers’ $200M Beer Deal
When it comes to partnership disputes in business, the headlines often tell the story before the contracts do. Recently, NFL stars Jason and Travis Kelce’s company, Garage Beer, was valued at $200 million after a private equity firm invested in the brand. While this deal made waves in both the business and sports worlds, it also highlights a critical truth: every new partnership introduces new opportunities—and new risks.
At Alisme Law, we help business owners navigate these exact moments. Whether you are entering into a shareholder agreement, taking on a new investor, or facing the breakdown of a business relationship, the lessons from high-profile deals like this one apply to every business.
Why Partnership Disputes in Business Happen
Just like marriages, business relationships can fall apart. Common reasons for disputes include:
- Conflicting goals between partners or investors
- Misuse of company resources
- Breach of fiduciary duty
- Disagreements over profit distribution or management control
Without strong agreements and attorneys to enforce them, these disputes can lead to protracted litigation.
The Importance of Partnership & Operating Agreements
If you are bringing in new investors, like the Kelce brothers did with Garage Beer, your operating agreement or partnership agreement should clearly outline:
- Rights and responsibilities of each partner
- How profits and losses will be divided
- What happens if a partner exits the business
- Procedures for resolving disputes
These documents aren’t just paperwork. They are your legal protection when business relationships turn sour.
How to Protect Your Business Before a Partnership Dispute Arises
To minimize risk:
- Review all agreements with legal counsel before signing.
- Update contracts regularly as new investors or partners join.
- Plan for conflict by including dispute resolution clauses.
- Keep communication transparent with all shareholders and directors.
- Have the right business litigation counsel by your side.
At Alisme Law, we work with businesses to enforce business agreements when disputes arise and protect their interests.
Real-World Example: Garage Beer’s $200M Valuation
The Kelsey brothers’ success is inspiring, but imagine if disagreements emerged between the founders and their new private equity investors. Without strong legal agreements, even a $200M valuation could quickly turn into a $200M dispute.
Conclusion
Partnership disputes in business can arise when you least expect them, whether in a family-owned company, a startup, or a multimillion-dollar venture like Garage Beer. By having clear agreements and experienced legal counsel, you protect your business interests when relationships change.
📞 Call us at 917-809-5451 to schedule a consultation and safeguard your company’s future.Disclaimer: This blog is for advertising purposes only. It should not be considered legal advice