UFC Announces $375 Million Antitrust Lawsuit Settlement
The UFC has reached a new antitrust law settlement worth $375 million.
The UFC has come under fire after facing two lawsuits. They claimed it breached antitrust laws to control how much fighters could earn. This was on the grounds that it had formed a monopoly and thus ruled out any further competition. The first lawsuit was brought in 2014, Le vs. Zuffa, in which around 1200 UFC fighters came forward.
That was then followed by another lawsuit in 2021, Johnson vs. Zuffa, which argued similar grounds. TKO Group Holdings Inc. agreed to a $335 million settlement. All that was required was for the judge to enforce it, which naturally would prevent a trial from going ahead. However, the judge in charge of the case, Richard Franklin Boulware, rejected it. This was on the basis that the figure was deemed too low.
The leading attorney, Eric Cramer, for the UFC fighters also spoke out. He hoped a resolution could be reached to avoid a trial. A trial would only delay the process and put the fighters at risk of not getting a substantial amount. However, according to reports, a new settlement has now been reached. All that is required is for the courts to enforce it to bring this saga to an end once and for all. But this settlement has no bearing on the other case Johnson vs. Zuffa.
Reaction
“We believe this new proposed settlement for the Le case is an excellent result for the class of UFC fighters we represent. If approved, it would provide immediate monetary relief to over 1,000 fighters who would each recover a significant enhancement to what he or she earned from the UFC during his or her fighting career. We look forward to presenting the proposed settlement to the court for preliminary approved in the near future. [And] we also plan on vigourously pursuing claims on behalf of the fighter class in the later-filed Johnson case, including claims for injunctive relief against the UFC,” Eric Cramer said
“We have reached a revised agreement with Plaintiffs to settle the Le case with terms that we believe address Judge Boulware’s stated concerns. While we believe the original settlement was fair — a sentiment that was also shared by Plaintiffs — we feel it is in the best interest of all parties to bring this litigation to a close. As for the Johnson case, that process is in very early stages, and a motion to dismiss the complaint remains pending,” UFC stated
Implications
The figure is still considerably lower than what the plaintiffs were seeking. It is alleged that the lawsuits were looking to get between $894 million and $1.6 billion in damages. Nevertheless, it will present the UFC with something to consider moving forward. The organization has repeatedly come under fire for not paying their fighters enough.
Jake Paul has been very vocal on this, calling on Dana White to increase the base pay from $12,000 to $50,000 for the average UFC fighter. This was so they could live off the salary if they only fought once a year. There has also been a rise in the number of MMA fighters crossing over to boxing and chasing the highest purses. This case could be a precedent of things to follow, as many people had their say on social media.
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