UFC fighters are paid a “much lower” share of revenue than athletes in other major team sports, such as the NFL, NBA, MLB and NHL, attorneys suing the mixed martial arts organization maintain in court papers.
The papers, filed in the ongoing litigation brought by former UFC fighters, notes that athletes in U.S. major team sports receive 50 percent or more of revenue. The percentage of revenue the UFC paid its fighters between 2010 and 2017 not only was “much lower” than athletes’ shares in the major sports leagues, but also the percentages paid to fighters in other MMA promotions, the fighters’ attorneys say in a court filing.
The percentage of revenue the UFC pays the fighters is contained in court papers, but the number is blacked out in the filing. Much of the information in the case filings is redacted, as there are orders or agreements to keep certain information under seal.
There is speculation in the industry, including in reports, that the percentage of UFC revenue the fighters receive is below 33 percent. That speculation is based, in part, on portions of the lawsuit that are not redacted, but that number could not be confirmed.
Attorneys for the fighters and for the UFC declined to comment for this story.
The lawsuit was first filed in December 2014 by a group of former UFC fighters, including Cung Le, Jon Fitch and Kyle Kingsbury, against the UFC’s owner at the time, Zuffa LLC. The UFC was acquired by Hollywood agency Endeavor in 2016 for $4.2 billion, and the lawsuit continues to wind its way toward a possible trial. The result could mean damages of more than $1 billion if the fighters win.
The percentage of revenue paid to fighters is redacted.
The latest information was contained in the fighters’ bid to certify a class of all fighters who either fought in a UFC event or whose image was used by the UFC between Dec. 16, 2010, and June 30, 2017. It’s not clear how many fighters that encompasses, but the UFC currently has about 600 fighters on its roster.
The fighter plaintiffs contend that the UFC broke antitrust law by engaging in an “anticompetitive scheme.” That scheme, as alleged by the fighters, consisted of Zuffa signing fighters to long-term contracts; using market dominance to “coerce” fighters to sign long-term contracts; and eliminating competition by acquiring and shutting down rival MMA fighter organizations, according to court papers.
The fighters also allege that Zuffa formerly paid fighters a higher share of revenue but that it doesn’t have to anymore because it eliminated competition through the alleged scheme.
“Zuffa pays its Fighters a much lower share of its revenues (‘Wage Share’) than do other MMA promoters with less market power, far less than sports leagues where athletes’ mobility is less restrained, and less than Zuffa paid them when it had less market power,” the fighters say in court papers.
The contention that UFC fighters are paid less than other athletes is part of reports and depositions from the fighters’ expert witnesses, including sports economist Andrew Zimbalist, economist Hal Singer and accountant Guy A. Davis.
Zuffa, which is represented in the litigation by powerful law firm Boies Schiller Flexner LLP, has asked a federal judge in Nevada to exclude the testimony of Zimbalist, Singer and Davis. A hearing on that had not been set as of press time.
Zuffa also argues that the UFC is different from the NFL, MLB, NBA and other major leagues, and therefore it’s not fair to compare it to those leagues. Those leagues all have regional fan bases that have been around for decades, player drafts and unions that collectively bargain for the players, among other things, the UFC argues. “The differences between the UFC and long-established major league sports are also obvious and legion,” Zuffa says in its papers.
MMA fighters are not unionized and the UFC considers them to be independent contractors.
MGC ADDS DRAFT CLASS, AGENT: MGC Sports Group has added veteran NFL player agent Brian Parker as a partner and has signed several players for the NFL draft. The firm has signed Arkansas cornerback Henre’ Toliver, Arkansas running back David Williams, Vanderbilt wide receiver Trent Sherfield, University of Texas at San Antonio quarterback Dalton Sturm and Mississippi State long snapper Hunter Bradley.
MGC agents Parker, Kyle Strongin, Alan Bullington and Jay Courie are representing the players.
MGC Sports was launched in 2016 with music artist Darius Rucker as a co-founder. Parker, who was certified by the NFL Players Association in 2000 and counts Buccaneers tight end Alan Cross and Jets center Wesley Johnson as clients, is the latest veteran agent to join the group.
Liz Mullen can be reached at lmullen@sportsbusinessjournal.com. Follow her on Twitter @SBJLizMullen.
