Plaintiffs and more than 50 fighters ask Judge to approve new settlement in UFC antirust case
Attorneys for the Plaintiffs in the Le et al v Zuffa, LLC (the parent company of the UFC) class action antitrust lawsuit have submitted to the court a memorandum of support of the motion for preliminary approval for the new proposed $375 million settlement. The new filing asks Judge Boulware to give preliminary approval to the settlement, while giving details regarding the planned allocation, notifications, a delivery schedule, as well as 56 declarations from fighters that fought in the UFC during the class period requesting that the Judge grant approval.
This new settlement calls for $375 million, an increase of $40 million over the previous proposal, to be paid to only Le Class Members, and was first announced by TKO Group Holdings, Inc two weeks ago in an 8-k filing with the SEC. The Johnson Class Members, which represents more recent fighters, would no longer be included in this settlement, and their case would progress in the courts separately.
The Le v Zuffa case, which was originally filed back in 2014 by named plaintiffs Cung Le, Nate Quarry. Jon Fitch, Brandon Vera, Javier Vazquez, and Kyle Kingsbury, asserts that the UFC’s market dominance has violated antitrust laws by restricting fighter compensation and career mobility. The lawsuit has since been certified as a class action for the Bout Class, which covers approximately 1,100 fighters who competed in the UFC between December 16, 2010 and June 30, 2017. A second class, the Identity Class which sought damages for the UFC’s use of fighters images, was denied class certification by the Judge.
After almost a decade contentious litigation, the proposed settlement offers $375 million to compensate fighters for damages they suffered from the UFC’s actions during the class period. The Plaintiffs argue that the settlement amounts to a significant share of the total damages computed by Plaintiffs’ economists.
Proposed Settlement Terms
Dr. Hal Singer had calculated two different estimates for the damages suffered by UFC fighters. In the first it ranged from $811 million to $1.6 billion while under his second model it was $894 million. Prof. Andrew Zimbalist, meanwhile calculated damages of $981.8 during the class period. The Plaintiffs highlight that the $375 million settlement would represents more than 40% of the single damages of the low end estimates and 14% of the trebled damages and equates to nearly 70% of the total compensation that the UFC paid to its entire roster of fighters during the whole Le Class Period.
The Plaintiffs attorneys, who are working on a contingency, are asking for 1/3 of the Le portion of the previous settlement proposal and 20% of the additional $73.5 million that is being added to the settlement (or 30.7% of this new settlement) as well as up to $12 million in reimbursement for litigation expenses. This would leave approximately $250 million to be distributed to the Le Class members.
The settlement will be paid out to valid class members (we will post information at the bottom of this article to help fighters contact the Plaintiffs’ attorney and make sure they are valid claimants and get their settlement if it ends up approved by the Judge ) based on two pro rata factors:
70% of the Net Le v. Zuffa Settlement Fund (an estimated $173.6 million) is to be distributed on the basis of each Claimant’s pro rata share of all Event Compensation earned during the Class Period.
30% of the Net Le v. Zuffa Settlement Fund (an estimated $74.4 million) is to be distributed on the basis of each Claimant’s pro rata share of all UFC bouts fought during the Class Period.
The minimum distribution amount for a class member will be $15,000.
Since we know the total earnings by UFC fighters during the class period ($556.5 million) and we now the total number of bouts fought in the UFC during the period (2,688) we can estimate how much a fighter may receive under this plan.
A fighter should received around 31% of the total bout compensation they earned during the class period (bout compensation would include all their show, win, Performance of the Night, discretionary bonuses, side letters, and pay-per-view bonuses but not the athlete kit payments or royalties from merchandize or image uses) plus $13,800 per bout they took part in during the class period.
Thus a fighter who competed 6 times and earned $150,000 during the class period would stand to receive approximately $129,000.
Declarations from the Fighters
The proposed settlement included several declarations of support from former fighters, amongs them such fan favorites as Chris Leben, Matt Brown, Shane Carwin, Patrick Cote, Wanderlei Silva, and Diego Sanchez. Many of the fighters describe the settlement as a potential lifeline. As Joe Stevenson, the welterweight winner of the 2nd season of The Ultimate Fighter, stated, “I have been living paycheck to paycheck since leaving the UFC,” expressing hope that the settlement would allow him to purchase a home for the first time since 2008. Jamie Varner illustrated the precarious financial situations many fighters face, revealing, “As a result of this debt, I frequently take fights while injured.” Such declarations highlight the pressures fighters endure, often prioritizing financial stability over health.
The health concerns articulated in these declarations are equally pressing. Spencer Fisher, now grappling with severe health challenges, emphasized the urgency of accessing funds: “The sad reality is that funds years from now may be of no use to me. I desperately need these funds now.” Jorge Rivera shared similar fears, voicing concerns about potential traumatic brain injuries (TBI) and their debilitating effects, which include depression and mood swings.
Despite the potential for larger payouts through a trial, many fighters expressed a desire for immediate relief. Mike McDonald captured this sentiment succinctly: “While I understand that a trial could result in a higher award, a bird in the hand truly does beat two (or three, or even nine) in the bush.” This pragmatic approach reflects a longing for stability, as fighters outline plans for the settlement funds—investing in homes, paying off debts, and seeking necessary medical care.
The declarations also reveal underlying frustrations with UFC business practices. Todd Duffee pointed out the long-term repercussions of refusing to fight while injured, explaining how it adversely affected his career trajectory and financial well-being. This collective acknowledgment of systemic issues within the UFC underscores the need for reform.
When would the fighters get paid?
Under the agreement, Zuffa is set to contribute a total of $375 million to establish the Le v. Zuffa Settlement Fund, which will be disbursed in three installments. The first payment of $125 million is expected within three business days of the court's preliminary approval, followed by another $125 million upon final approval, and a final installment of $125 million by June 30, 2025. These funds will be held in an interest-bearing escrow account managed by Huntington National Bank and overseen by a third-party Claims Administrator, Angeion Group.
The Claims Administrator, Angeion Group, will handle the collection of claims and the verification process for eligible fighters. While a specific timeline for when payments will be made is not provided, it is anticipated that the process may extend several months after the Fairness Hearing which would be roughly four months after the Judge grants preliminary approval . Factors such as court scheduling, potential objections, and the efficiency of claims processing will play significant roles in determining when fighters will receive their payments. The court retains the authority to modify any aspects of the settlement, including the allocation plan and attorney fees, further influencing the timeline for distribution.
ATTN: UFC Fighters (current & past)
*Please note that we’ll be updating the pertinent information for current and former UFC fighters on what’s happening with the antitrust case for the foreseeable future. We will also continue leaving the information links, numbers and emails here in case anyone wants to use it on their own for updates.
For additional information, including any updates relating to any settlement or the settlement approval process, visit:
http://UFCFighterClassAction.com
Toll-free number: 1-866-955-5564
You may also write to the Class Action Administrator by mail:
UFC Fighter Class Action
c/o Class Action Administrator
1650 Arch Street, Suite 2210, Philadelphia, PA 19103
or email:
info@UFCFighterClassAction.com
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