UFC’s $335 Million Settlement with Fighters Rejected by Federal Judge

The Ultimate Fighting Championship’s (UFC) proposed $335 million settlement to resolve a class action wage dispute has been denied by a Nevada federal judge. The decision, delivered by Judge Richard F. Boulware of the US District Court for the District of Nevada, casts uncertainty over the resolution of the high-profile case.

Judge Boulware, who had previously expressed concerns about the fairness of the proposed settlement, issued the denial on Tuesday, without providing an immediate explanation. He stated that a separate written order detailing the reasoning behind the rejection would be issued later, reported Bloomberg.

The settlement aimed to address claims in the UFC antitrust lawsuits, offering significant payouts to fighters. The deal would have provided members of two classes with financial compensation that represented substantial portions of their lifetime earnings from the UFC. Nearly 500 of the 2,000 fighters involved were set to receive over $100,000 each.

Despite the settlement, Judge Boulware’s decision means that the Le vs. Zuffa case, which encompasses all UFC fighters from 2012 to 2017, will return to the trial schedule. The trial is tentatively set to begin on October 28, 2024, with a status conference scheduled for August 19, 2024, to finalize the details.

Related: UFC’s Hopes Dashed as Ninth Circuit Denies Antitrust Appeal

The rejection of the settlement is a setback for all parties involved, including the fighters and their legal representatives, who had expressed satisfaction with the deal. UFC fighters’ lawyer, Eric Cramer, emphasized during a hearing that taking the settlement would be in the best interest of the fighters. He warned that pursuing a trial could lead to a prolonged legal battle, potentially reaching the Supreme Court, and possibly resulting in no financial compensation for the fighters.

“The world where that doesn’t happen is not in that fighter’s interests,” Cramer told Judge Boulware. “I would tell that fighter if they were in my office, ‘You’re likely to lose. You’re likely to get nothing.’”

Judge Boulware’s concern centered on the lack of injunctive relief in the proposed settlement, which would have left current UFC fighters with limited options to exit the promotion once under contract. This aspect of the settlement was seen as inadequate in addressing the broader issues faced by fighters in terms of mobility and negotiating power within the sport.

Source: Bloomberg