UFC Antitrust Case Update: Judge Rejects Settlement, Trial Set for October

In a significant turn of events, the ongoing class action antitrust case against the UFC has taken a new direction as U.S. District Judge Richard Boulware has rejected a proposed settlement that was agreed upon by both the UFC and the fighters involved in the lawsuit. This decision sets the stage for a jury trial, tentatively scheduled to begin on October 28, 2024.

Background of the Case

The lawsuit, initiated by former UFC fighters Cung Le, Nate Quarry, Jon Fitch, and Kajan Johnson, alleges that the UFC engaged in anti-competitive practices to suppress fighter pay. The plaintiffs argue that the organization has abused its monopsony power—where a single buyer dominates the market—to keep wages artificially low.

The original settlement proposed a payout of $335 million, which would have provided approximately 1,100 fighters with compensation ranging from $70,000 to potentially over a million dollars for some. However, Judge Boulware expressed concerns regarding the adequacy of this settlement, particularly in light of the potential for a much larger payout if the fighters were to prevail in court.

Judge's Concerns

Judge Boulware highlighted that the proposed settlement amount seemed disproportionately low compared to the estimated damages, which could exceed $1.5 billion if the case goes to trial and the fighters win. He also pointed out that the second case, associated with Kajan Johnson, appeared weaker and might not stand on its own due to contractual waivers signed by the fighters involved.

The judge's decision to deny the preliminary approval of the settlement indicates a desire for a more equitable resolution for the fighters involved. This ruling also opens the door for the UFC and the plaintiffs to negotiate a new settlement that addresses the judge's concerns.

Implications for the UFC

The implications of this ruling are substantial for the UFC. If the organization loses the trial, it could face damages that are tripled under antitrust laws, potentially amounting to over $4 billion. This looming financial threat underscores the seriousness of the allegations against the UFC and the potential ramifications for its business practices.

Prior to the proposed settlement, a trial was set to begin on April 15, 2024, with expectations of lasting four weeks. The case centers on allegations that the UFC utilized long-term exclusive contracts to restrict fighters' ability to seek better opportunities, coerced them into re-signing unfavorable deals, and engaged in practices that stifled competition within the MMA landscape.

Looking Ahead

As the October trial date approaches, the UFC may seek to negotiate a new settlement that satisfies both the court's concerns and the fighters' demands. The outcome of this case could set a precedent for how fighters are compensated in the future and may reshape the business practices of the UFC and other MMA organizations.

The upcoming status conference on August 19 will be critical in determining the next steps for both parties involved. With the stakes higher than ever, the MMA community will be closely watching how this case unfolds and what it means for the future of fighter pay and rights within the sport.

Stay tuned for more updates as this story develops.