UFC must pay billions of dollars in lawsuit against former fighters

An antitrust lawsuit filed by more than a thousand former fighters could cost billions of reais to the UFC. The action, filed in December 2014, is led by the Vietnamese naturalized American Cung Lemiddleweight who fought in Ultimate and Strikeforce.

The former athlete alleges that the UFC promoted a scheme to “monopolize” the market for professional MMA fighters by buying leagues such as Pride, Strikeforce and WEC, eliminating competition. By the end of 2015, four other similar processes were also filed and ended up being included in the same action.

Between 2021 and 2023, three more processes of the same nature were registered, resulting in a collective action that, in total, involves around 1200 former fighters from the organization, including former champions, such as Fabrício Werdum, Lyoto Machida and Miguel Torres. Brazilian Bethe Correia is also included in the process.

Among other allegations, in addition to the monopoly accusation, are permanent physical injuries such as brain injuries, serious bodily injuries and even a broken neck – all suffered while fighting in the UFC or in one of the leagues acquired by TKO Group Holdings, the company that owns of Ultimate.

How much can the UFC lose?

Since the beginning of the action, Ultimate has been trying to reach an agreement to avoid the courts. In March of this year, the organization almost succeeded.

The amount to be paid would be US$375 billion (R$2.19 billion, at current exchange rates)with US$335 million (R$1.9 billion) going to fighters who performed at the event between 2010 and 2017, and the rest of the amount for the others.

The trial was scheduled for April 15, but was suspended for the Court’s analysis. In October, judge Richard Boulware refused the proposal and rescheduled the trial for February 3, 2025.

The decision, however, did not please the former fighters, who prefer to receive this amount now to guarantee financial relief before the case goes to court and could be tied up in appeals for much longer.

But Boulware’s denial means the Court could demand a much higher amount from the UFC for the former athletes; Experts calculate that TKO Group Holdings should pay at least US$894 million (R$5.2 billion) – this amount could reach up to US$1.6 billion (R$9.3 billion).

In the rush to receive compensation, the plaintiffs entered into private mediation with TKO, which is also interested in a settlement of less than US$894 million. Due to this possible negotiation, the trial may even be postponed.