Dana White’s UFC has been sued countless times over the years, but the recent antitrust lawsuit surely takes the cake for the most taxing one. The UFC had hoped to settle the case outside the court for a whopping $335 million. However, their legal battle just got extended to another round.
Judge Richard Boulware has refused to accept a $335 million settlement in the ongoing antitrust lawsuit. The stakes for this refusal could potentially cost billions to the UFC. The case, known as Le vs. Zuffa, represents UFC fighters from 2012 to 2017. These fighters claim the UFC used its muscle to unfairly manipulate the market.
The proposed settlement would have paid out over $100,000 to nearly 500 fighters. But Judge Boulware wasn’t impressed with the lack of “injunctive relief” for current fighters. In other words, the deal didn’t do enough to change the UFC’s business practices. The judge also raised concerns about more recent fighters being left out in the cold.
This decision surprised many, including TKO Group Holdings’ big boss, Ari Emanuel. During a recent earnings call, he was fully confident that this $335 million settlement would have closed the matter. Now, barring another settlement attempt, the case is set for an October 28th trial date. Will the UFC defend its business practices? Or will the fighters seek fairer treatment? Only time will tell.
The UFC Antitrust Lawsuit Explained
Ultimate Fighting Championship has become synonymous with the sport of MMA. Other MMA organizations don’t even come close to the UFC’s supreme reign over the market. But now, it’s facing a different kind of fight, one that is also in the courtroom.
White‘s UFC is embroiled in a $1.6 billion class-action antitrust lawsuit. At the heart of the matter is money, simple as that. About 1,200 fighters claimed the UFC has been pinching their pennies. They say the organization used its place in the MMA market to keep their pay low. The fighters argue that the UFC has a tight hold over the entire sport.
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These fighters claim that the UFC’s contracts are very limited, including non-compete clauses and non-poach agreements. The fighters allege these tactics have kept their revenue very meager, close to a measly 20% compared to other sports’ 50%.
But the UFC wasn’t tapping out without a fight, countering with its own arguments. It says it has invested heavily in making MMA a legitimate sport, and it is true. In its early days, MMA was called “human cockfighting.” The UFC claims it competes globally for talent. Plus, it argues that its contracts are fair to the fighter and the organization itself.
The outcome of this antitrust lawsuit could reshape the sports entertainment landscape. Whether the UFC wins or the fighters remains to be seen. Fans of the sport will definitely hope for a swift resolution to this drama and maybe see an increase in the fighter’s pay in the UFC.
