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Leagues and Governing Bodies

Lawsuit Claims UFC Is Illegal Monopoly Limiting Earnings For Fighters

A current UFC fighter and two former competitors "have filed a class-action lawsuit against the organization, alleging an illegal monopoly that limits fighter earnings," according to Lance Pugmire of the L.A. TIMES. Attorneys said that the suit "was filed in U.S. District Court in San Jose" on behalf of fighters Cung Le, Jon Fitch and Nate Quarry. UFC in a statement said it will "vigorously defend itself and its business practices.” An attorney for the fighters in a statement said, “All UFC fighters are paid a mere fraction of what they would make in a competitive market. ... MMA fighters go substantially under-compensated despite the punishing nature of their profession.” The attorney said that UFC co-Chair & CEO Lorenzo Fertitta and President Dana White "have sought to eliminate competitive MMA circuits, such as Strikeforce" (L.A. TIMES, 12/17).

ADDITIONAL PLAINTIFFS? ESPN.com's John Barr cited one of the attorneys as saying that it "could evolve into a class-action antitrust lawsuit involving hundreds of fighters." The lawsuit is the "culmination of months of rumors about pending legal action." Phoenix-based attorney Rob Maysey said, "The antitrust laws of the United States were designed to prevent any company from dominating a market, artificially stifling competition and hoarding supercompetitive profits. That is exactly what happened here." Le said of UFC, "They control our likeness. They control our career, and that's a choice we as fighters should have. And we don't have that choice." Barr noted the FTC's Bureau of Competition "opened an anti-trust investigation" on UFC parent company Zuffa LLC after the purchase of Strikeforce in '11. The FTC "closed that investigation in January 2012 but maintained the right to reopen at any time." Fertitta said that UFC as recently as '05 was "nearly drowning" in $44M worth of debt. Barr cites sources as saying that UFC today is worth "north" of $1B. Barr noted the lawsuit "refers to the Las Vegas-based company as a $2 billion outfit" (ESPN.com, 12/16). Cohen, Milstein, Sellers & Toll PLLC attorney Benjamin Brown, who represents the plaintiffs, said that discovery "could take a year or longer, and a trial may not happen for at least three years" (NEWSDAY, 12/17).

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