Judge Rejects $335M UFC Antitrust Settlement: High-Stakes Trial Set for October!
The UFC antitrust lawsuit, a high-stakes legal battle that kicked off in 2014, has taken a dramatic turn. Judge Richard Boulware has denied preliminary approval for a proposed $335 million settlement, setting the stage for an epic courtroom showdown on October 28.
In a bombshell decision on Tuesday, Judge Boulware rejected the settlement after the UFC agreed to the payout to resolve two separate antitrust lawsuits filed by fighters. The detailed written order explaining Boulware’s decision is expected soon, but the case is now barreling toward trial. A status conference on August 19 will nail down the exact trial date.
Judge Boulware had previously voiced concerns that the settlement amount was too low and highlighted that fighters in the second lawsuit—covering athletes from 2017 to the present—might challenge arbitration and class action waiver clauses in their contracts. This ruling has sent shockwaves through the MMA community, as fighters’ attorneys argued that the settlement would provide much-needed financial relief for many athletes.
Eric Cramer, an attorney for the fighters, emphasized the high stakes: “The reality is the claim has little value. They should take the money and the injunctive relief. The world where that doesn’t happen is not in that fighter’s interests because they will likely lose and get nothing.”
Winning at trial means the plaintiffs and fighters must prove their case beyond a reasonable doubt and secure a unanimous jury verdict. Even then, the UFC would likely appeal, potentially delaying any payments for years. A loss for the UFC could mean billions in payouts, but the fighters’ attorneys are wary of risking it all at trial.
Cramer warned of the potential fallout: “There are thousands of people out there who could use that money. If this settlement doesn’t happen and we are forced to take this case to trial and lose, that would be devastating for a lot of people. And a lot of money would come out of the pockets of a lot of people.”
The antitrust lawsuit merges two cases: one from 2010 to 2017 involving fighters like Cung Le and Nate Quarry, and another from 2017 to the present led by Kajan Johnson. The fighters allege that the UFC used exclusive contracts, coercion, and strategic acquisitions to dominate the market for elite professional MMA fighters.
The March settlement had both the UFC and the fighters’ attorneys celebrating, with some athletes poised to receive over $1 million and around 500 more getting at least $100,000. TKO Group Holdings, the UFC’s parent company, was ready to pay the $335 million, having earmarked the funds in a financial disclosure to the SEC.
Andrew Schleimer, TKO’s chief financial officer, expressed satisfaction with the initial settlement: “We’re pleased to have this matter resolved without introducing any further changes to UFC’s existing business operations. The long-form settlement agreement is expected to be filed shortly with the court for approval.”
Now, with the settlement denied and a new trial date looming, the UFC and the fighters may need to return to the negotiating table. Whether they settle the cases separately or together remains to be seen. Even if a new settlement is reached, it still requires court approval to finally close these lawsuits.
The next few months promise to be a rollercoaster for the UFC, its fighters, and the fans watching this legal drama unfold. Stay tuned for more updates as this case progresses towards its high-stakes trial date in October!
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