As a lifelong fan of UFC, I must admit that this latest news has left me both surprised and somewhat relieved. Surprised because it’s not every day you see a multi-billion dollar corporation like UFC agreeing to such a hefty settlement. Relieved because as a fan, I’ve often wondered if the fighters weren’t getting their fair share of the pie.
In a recent development, the Ultimate Fighting Championship (UFC) and its former athletes who had filed lawsuits alleging wage suppression, have agreed on a new settlement to resolve a class-action lawsuit. This lawsuit accused the mixed martial arts (MMA) promoter of infringing upon antitrust laws.
The TKO Group, formed through the merger of UFC and WWE, has agreed to pay $375 million to settle a lawsuit, as stated in a recent securities filing. This decision comes after their previous agreement was invalidated by the court due to concerns that the initial payment may have been too small.
Although we think the initial agreement was just, which was similarly felt by the Plaintiffs, we consider it beneficial for everyone involved to conclude this legal dispute.” (spokesperson for UFC)
The agreement reached is set to resolve two distinct class-action lawsuits for a total of $335 million. This settlement effectively concludes one of the cases, as UFC intends to withdraw the other. Both parties are seeking the endorsement of this settlement from Judge Richard Boulware in the U.S. District Court. Given potential damages in antitrust cases can be tripled, costing UFC over $4 billion, they believe that the updated terms will address the judge’s concerns.
A four-week trial, initially set for February, was planned, with potential damages estimated at approximately $1.6 billion. The focus of the case revolved around accusations that UFC employed long-term, exclusive contracts to significantly delay or entirely block free-agency; forced fighters into re-signing contracts under duress; and illegally acquired or shut down numerous rival MMA promotions, violating antitrust regulations.
Due to the alleged plan, the class action claimed that UFC has “monopsony power” – a situation where one buyer possesses a monopoly, enabling them to buy labor at prices below the market rate. Last year, a significant decision was made in favor of fighters when the court approved a class consisting of 1,214 fighters who competed between 2010 and 2017. However, another group of plaintiffs, who were allegedly exploited by Dana White’s team, were not granted permission to move forward with their case.
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2024-09-26 19:24