The UFC’s attempt to settle two antitrust lawsuits for $335 million was rejected by a judge who deemed the payout insufficient, leading to ongoing negotiations and a potential trial set for February 2025.
The UFC is still negotiating with plaintiffs in two antitrust lawsuits. But after a judge denied the initial settlement, the outcome remains uncertain.
In a twist, Judge Richard Boulware from Nevada rejected a $335 million settlement in July. This agreement aimed to resolve lawsuits dating back to 2014.
The judge felt the payout was too low. He also noted that fighters from the second lawsuit, covering athletes from 2017 onwards, might object to arbitration and class-action waiver clauses.
On Wednesday, Mark Shapiro, president and COO of TKO Group Holdings, addressed the judge’s decision. He spoke at the Goldman Sachs Communacopia + Technology Conference.
“Anyone following our business knows this is ridiculous,” Shapiro said. “We cut a deal to settle both suits, and the plaintiffs almost unanimously agreed it was good for them.”
“We spent more than expected on these cases,” he added. “But we reached a deal to move forward, and then the judge didn’t even grant preliminary approval.”
“Preliminary approval would allow fighters to voice objections,” Shapiro continued. “He shut it down before they had a chance to be heard. It’s somewhat unprecedented.”
The judge set a new trial date for Feb. 3, 2025, for the first antitrust lawsuit filed by fighters like Cung Le and Nate Quarry. He won’t delay the trial unless a new settlement is approved.
The UFC hopes to reach a new agreement to avoid trial. But Shapiro emphasized they’ve hit their ceiling regarding potential payouts.
If the case goes to trial and the UFC loses, Shapiro promised they’d fight the ruling vigorously. “We’re not writing a bigger check,” he said.
“This is as high as we ever thought we’d go,” Shapiro stated. “We believe strongly in our case and will defend ourselves intensely.”
“If there’s an adverse outcome, we’ll appeal repeatedly,” he vowed. “Just like the NFL did with their Sunday Ticket/DirecTV situation.”
In June, a jury awarded $4.7 billion in damages against the NFL for antitrust violations related to Sunday football games. However, a Federal judge later overturned this ruling.
Shapiro remains confident that the UFC will eventually close this chapter. But the initial settlement rejection still looms large.
“This is absurd,” Shapiro concluded. “Nobody supports it; plaintiffs want the money, and it would benefit the sport. All this does is enrich more lawyers.”