The Ultimate Fighting Championship (UFC) is currently facing an anti-trust lawsuit. The lawsuit claims that the mixed martial arts promotion is currently acting as a monopsony, offering a monopoly on labor within the sport.
The damaged assessed for the incomes of fighters since 2010 is estimated to a massive total of $1.6 billion. As a punitive measure, the final total assessed for the lawsuit is $4.8 billion.
The total would be distributed to fighters from December 2010 to December 2014, with the list of fighters potentially set to increase. If the UFC’s “scheme” is determined to have continued past 2014, then more fighters will likely be made eligible for compensation.
An expert on the situation broke it down on twitter:
Well this caught me eye. Plaintiff's expert Hall Singer came up with a damages figure of $1.6 Billion – that's with a B – for bout class (purses and such) and $37 million for Identity class (video game rights)
— John S. Nash (@heynottheface) February 17, 2018
That 1.6 Billion number was not a misprint. "I also explain why the most plausible damages estimate is the $1.6 billion calculation that flows from my impact regression."
— John S. Nash (@heynottheface) February 17, 2018
It'd be even worse. If they didn't settle and the jury or judge awarded them 1.6 bil then it be trebled to $4.8 billion.
— John S. Nash (@heynottheface) February 17, 2018
A bunch of motions & exhibits filed in the UFC lawsuit. Some look interesting. And long. 200 plus pages!
— John S. Nash (@heynottheface) February 17, 2018
The motion for class certification was filed. According to plaintiffs' analyst fighter compensation as a percentage of event revenue has decreased over time. Apparently Zuffa's expert conceded this as well
— John S. Nash (@heynottheface) February 17, 2018
A quote from Coker in the motion. Zuffa’s market power allows it to “dictate what an entry [level] fighter would get and what a mid-tier fighter would get, what a top-tier fighter would get."
— John S. Nash (@heynottheface) February 17, 2018
