UFC Settles Wage Suppression Lawsuit for $375 Million: A Major Win for Fighters

The Ultimate Fighting Championship (UFC) has agreed to pay $375 million to settle a class action lawsuit that accused the MMA promoter of wage suppression and violating antitrust laws. This significant settlement comes after a previous agreement was rejected by the court, which deemed the payout insufficient.

Background of the Lawsuit

The lawsuit, which involves former fighters, claims that UFC used long-term, exclusive contracts to stifle free agency and maintain a monopolistic hold over fighter wages. The accusations suggest that UFC coerced fighters into re-signing contracts and systematically acquired or shut down competing MMA promotions, thereby limiting market competition.

The plaintiffs argued that these practices allowed UFC to exert “monopsony power,” meaning they were able to purchase labor at below-market rates. This legal action included a class of 1,214 fighters who competed between 2010 and 2017, and it aimed to address significant concerns about fighter pay and rights.

The New Settlement Agreement

In a Thursday securities filing, TKO Group — formed by the merger of UFC and WWE — announced the new settlement agreement. A UFC spokesperson stated, “While we believe the original settlement was fair, we feel it is in the best interest of all parties to bring this litigation to a close.” The initial settlement had proposed a $335 million payout but was criticized for potentially being too low.

The new agreement aims to resolve one of the class actions, with UFC also moving to dismiss another case related to the lawsuit. Both parties are now seeking approval from U.S. District Judge Richard Boulware, who previously expressed concerns about the adequacy of the original settlement terms.

Implications of the Settlement

This settlement represents a significant development for UFC and its fighters, particularly as the stakes were high. A trial set for February could have lasted four weeks and carried potential damages of around $1.6 billion. The UFC had been at risk of facing much greater financial repercussions, with antitrust damages capable of being tripled, which could have resulted in losses exceeding $4 billion.

The ruling last year that certified the class of fighters marked a pivotal moment in the case, highlighting the legal system’s increasing willingness to scrutinize labor practices within the UFC.

Conclusion: A Step Forward for Fighters’ Rights

The resolution of this lawsuit signals a shift in the landscape of fighter compensation and rights within the UFC. As the settlement moves forward, it will be closely watched by industry stakeholders and fighters alike, highlighting ongoing concerns regarding fair pay in professional sports.