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topicnews · October 23, 2024

5 million settlement approved in UFC antitrust case, ending decades-long legal battle

$375 million settlement approved in UFC antitrust case, ending decades-long legal battle

A landmark $375 million settlement between the UFC and its former athletes has been approved, ending a decade-long legal battle over fighters’ compensation. The case, Le v. ZuffaThe focus was on allegations that the UFC, as the dominant organization in mixed martial arts (MMA), cut fighter salaries between 2010 and 2017. The settlement, reached Tuesday, marks an important moment for fighters who have long sought compensation.

The lawsuit, originally filed in 2014, alleged that the UFC used its market power to create unfair contract terms and keep fighters’ salaries artificially low. If the action were not completed, a court date would be in February 2024, with the possibility of billions of dollars in liabilities, according to Yahoo News.

Earlier this year, the two sides agreed to a $335 million settlement in March, but Judge Richard Franklin Boulware II rejected the proposal in July, deeming it too favorable for the UFC. The new $375 million settlement presented in September was intended to address his concerns. Judge Boulware’s approval on Tuesday now clears the way for payments to be made to the fighters involved in the case.

The UFC released a statement acknowledging the settlement, saying, “Today’s decision is welcome news for both parties. We are pleased to have moved another step closer to closing the Le case.” The promotion, which is owned by TKO Group Holdings, has been embroiled in litigation for years as former athletes sought compensation for what they described as unfair wage suppression during their time with the UFC.

Related: Settlement in UFC Fighters’ lawsuit resurfaces with $375 million offer

According to Yahoo News, former UFC athlete Tom Lawlor, who was a plaintiff in the case, estimated that about 1,200 fighters will receive some compensation. However, after accounting for legal fees totaling $115 million, the remaining $260 million pool will result in an average payout of approximately $217,000 per fighter, although individual payments may vary.

“It’s a historic day for the UFC and for the fighters,” Lawlor said. “After 10 years, it seems to be over.” For many of the athletes, the settlement represents a significant victory after a long legal battle that has drawn attention to fighter pay disparities in the world of professional MMA.

Although this case has reached its conclusion, the UFC still faces legal challenges. A separate lawsuit led by former UFC fighter Kajan Johnson is currently underway that addresses compensation issues for fighters who competed after 2017. No trial date has been set for this case and the UFC has already filed a motion to dismiss the lawsuit.

Source: Yahoo News