UFC will reportedly be the defendant in a class-action lawsuit for a substantial amount of money by current and former fighters on the grounds it violated antitrust laws.
According to a report from Brent Brookhouse and Josh S. Nash of BloodyElbow.com, the suit could include loss of income stemming from less money received for fighting and various sources of income that employees haven't received:
Several of the individuals we spoke to compared it to the recent San Jose hi-tech employee and NCAA antitrust cases. The manager of one high profile fighter who wished to remain anonymous has informed Bloody Elbow that the plaintiffs will be seeking damages for potentially hundreds of millions of dollars due to reduced fight purses, video game rights fees, and other sources of income. The final amount could even be greater, with statutes awarding 'treble damages' in antitrust cases.
According to a separate report from Brookhouse released on Tuesday, three of the fighters involved in the lawsuit are Jon Fitch, Cung Le and Nate Quarry. Brookhouse provided details on the specifics of the lawsuit:
The suit alleges that the UFC has violated the Sherman Antitrust Act via an illegal scheme to eliminate competition. The result of these tactics is a marketplace where fighters are only able to earn a fraction of what they would in a competitive marketplace (along with fighters being forced to give up the rights to their name and likeness in perpetuity...etc).
Per Damon Martin of Fox Sports, Le and Quarry are represented by the same manager in mixed martial arts:
The three plaintiffs named in the suit thus far are Cung Le, Nate Quarry and Jon Fitch. Le and Quarry share the same MMA manager as well
— Damon Martin (@DamonMartin) December 16, 2014
Brookhouse was quick note that this doesn't mean there are only three fighters involved in the suit:
It's worth noting that people shouldn't confuse this with meaning Le, Fitch and Quarry are the only fighters involved
— Brent Brookhouse (@brentbrookhouse) December 16, 2014
Greg Savage of Sherdog.com noted more specifics about the lawsuit, including the title and when it was filed:
The civil action is entitle Cung Le, et al v. Zuffa, LLC, d/b/a Ultimate Fighting Championship and UFC.
— Greg Savage (@TheSavageTruth) December 16, 2014
The case was filed today in the Northern District of California in San Jose. It seeks treble damages and injunctive relief under the ...
— Greg Savage (@TheSavageTruth) December 16, 2014
Sherman Antitrust Act.
— Greg Savage (@TheSavageTruth) December 16, 2014
Phoenix-based lawyer Rob Maysey told ESPN's Outside The Lines, via John Barr of ESPN.com, that he's had interactions in the past with UFC management to warn them about the possibility of a lawsuit like the one it's currently facing:
I called [the UFC] in 2006 and said 'You have a choice.' I said, 'You guys are going to recognize a fighters' association or you're going to face an antitrust case.
They [The UFC] have become the only game in town and locked down the entire sport. ... At its heart, this lawsuit is about fundamental fairness. The world-class athletes that comprise the UFC are making enormous sacrifices and taking huge risks. It is a basic right that these athletes enjoy the fruits of their labors.
Brookhouse and Nash also state in the original report that UFC's new sponsorship deal "appears to have reached into the suit, resulting in some strategic changes."
The deal between UFC and Reebok was agreed to on Dec. 1, per UFC.com, with company CEO Lorenzo Fertitta saying it's "the biggest non-broadcast partnership that our company has ever signed."
However, the blockbuster agreement has not been met with praise from all the fighters. Heavyweight Brendan Schaub said on “The Fighter and the Kid” podcast he co-hosts that his sponsors were pulling out because of the Reebok deal, via Kelefa Sanneh of The New Yorker.
“I make twice as much money off sponsors than I do what the U.F.C. pays me,” Schaub said. He said that, before the Browne fight, about six of his sponsors pulled out. “It’s the lowest I’ve ever made on sponsorship money,” Schaub said.
Fighters generate income through various sponsorship deals, which can be seen on their attire in the ring and banners that get held over the cage prior to the start of a fight.
It's unclear how much of a role the Reebok deal is playing in the class-action lawsuit, though Schaub's comments and the details in the lawsuit certainly paint a dark picture of what the future holds for the largest MMA promotion in the world.
