UFC’s Antitrust Settlement Trial Set For February 3 – What’s Next?

A trial date for the UFC’s antitrust settlement for February 3, 2025, has been set. 

The date emerged after Judge Richard Boulware refused to approve the $335 million settlement figure. The UFC was accused of breaching antitrust laws to form a monopoly controlling how much fighters could make. The first of two lawsuits was filed in 2014, called ‘Le et al. vs Zuffa’. Around 1200 UFC fighters brought the action, followed by another lawsuit in 2021. Kajan Johnson and C.B. Dollaway took legal action. A settlement figure was agreed upon to prevent a trial from going ahead. 

“On March 13, 2024, TKO reached an agreement to settle all claims asserted in both class action lawsuits ([Cung] Le and [Kajan] Johnson) for an aggregate amount of $335 million payable by the Company and its subsidiaries in installments over an agreed-upon period of time. The terms will be memorialized in a long form agreement and then submitted to the court for approval. The Company anticipates that the settlement amount will be deductible for tax purposes,” TKO Group Holdings said

Settlement Rejected

The courts then simply had to approve it. However, this did not happen. Judge Richard Boulware was concerned that the figure may be too low. TKO were unhappy, while the attorney Eric Cramer, who represents the UFC fighters, wanted to ensure his fighters got paid as a trial could see them lose. 

“We obviously disagree with this ruling and believe it disregards the expertise of counsel from both sides, as well as that of an accomplished and expert mediator – all of whom have decades of experience in antitrust case law.

“It prevents the athletes from receiving what they have argued is in their best interest and unwinds an extensively negotiated settlement that, in the plaintiffs’ counsel’s own words, ‘would far surpass the typical antitrust class action settlement’ and ‘is an excellent result for the Settlement Classes by all traditional measures.’

“Additionally, by taking the unusual step of denying the settlement at this preliminary approval stage, the Judge is also denying the athletes their right to be heard during this pivotal moment in the case.

“As we have said throughout this process, we believe strongly in the merits of our cases and are evaluating all our options – including, without limitation, an appeal – and have initiated discussions with plaintiffs’ counsel who have expressed a willingness to engage in separate settlement discussions for the Le and Johnson cases,” TKO

Further Concerns

“Plaintiffs respect the Court’s ruling rejecting the proposed global resolution of the Le and Johnson cases, and accordingly will be moving forward full speed on all fronts as directed by the Court. We now plan on ramping up preparations in Le for the imminent trial, and also will begin pressing forward with discovery in Johnson.

“At the same time, with the interests of our clients and the classes at the forefront, we are also open to reengaging with the UFC to see whether the parties could reach a settlement building off of the momentum achieved in the prior settlement, but working to satisfy the Court’s expressed concerns with that resolution.

“In particular, to eliminate several of the issues expressed by the Court regarding the prior proposed combined settlement of Le and Johnson, Plaintiffs believe the best path forward, if a new settlement becomes a possibility, is to attempt to resolve the two cases separately, focusing first on the Le case given its imminent trial date, and using the progress made to date as a jumping off point for further discussions.

“Thus, while Plaintiffs’ focus will be on preparing for trial, we are keeping an open mind with respect to a potential new resolution. At root, Plaintiffs want nothing more and nothing less than justice for the professional MMA fighters we have represented for more than ten years in the most efficient and effective way possible,” Eric Cramer

The outcome of this case is critical for the future of UFC pay. It will set a precedent which is why any decision must satisfy both parties. 

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