A Nevada judge approved a $375 million settlement agreement in the first UFC antitrust lawsuit, ending a decade-long litigation over claims that the UFC maintained monopsony power through contracts and acquisitions, with payouts to fighters pending after legal fees are deducted.
In Nevada, a settlement agreement has been approved, concluding the first UFC antitrust lawsuit after a decade-long battle.
Judge Richard Boulware gave preliminary approval on Tuesday. The UFC agreed to pay $375 million, but the actual payout to fighters remains uncertain until case fees are deducted.
This lawsuit, initiated by fighters like Cung Le and Nate Quarry in 2014, accused the UFC of maintaining monopsony power in elite MMA fighter services. They claimed this was achieved through exclusive contracts, coercion, and acquisitions that eliminated competition.
Fighters from 2010 to 2017 were covered under this initial lawsuit. Quite a span!
An original settlement of $335 million was proposed in March. However, it was rejected as the judge felt it was too low and allowed fighters to object to arbitration clauses.
Despite setting a trial date, both parties worked towards settling before agreeing on the $375 million payout for the original case.
Attorneys provided a financial breakdown showing how much athletes would receive from this settlement.
“The $375 million cash recovery offers a swift payment against the delays of trial,” attorneys noted. They initially proposed allocating most of the prior settlement to the Le Class, increasing their share significantly.
Under this deal, Le Class members could recover an average of $250,000 after fees. Thirty-five members might net over $1 million; nearly 100 could get over $500,000. A windfall for many!
Over 150 statements from UFC fighters supported the settlement’s approval. Many cited severe physical and financial hardships in their letters.
With the judge’s decision in place, focus shifts to UFC making payments and attorneys handling disbursements post-fees.
Eric Cramer, lead attorney for plaintiffs, expressed satisfaction with the preliminary approval. “A monumental achievement,” he called it.
He praised representative plaintiffs for their decade-long fight and hinted at pursuing further changes in a second antitrust case.
A UFC spokesperson also welcomed Judge Boulware’s decision, seeing it as progress towards closing the Le case.
Meanwhile, the second antitrust lawsuit continues. A separate settlement might be possible before trial. Recently, UFC attorneys filed a motion to dismiss it—awaiting the judge’s ruling on that one!