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UFC: What does the recent $375 million settlement mean for its future?
EG explores the controversy around UFC and the payment of its fighters.
SportUFC: What does the recent $375 million settlement mean for its
While top-ranked fighters who headline main events can earn millions per fight, the argument that the company does not pay their fighters as much as they deserve has caused big names like Francis Ngannou and Demetrious Johnson to jump ship, with some even choosing to take legal action. In 2014, a class action lawsuit was filed against the parent company of the UFC (Zuffa LLC).
Cung Le v. Zuffa, LLC alleges that the UFC violated antitrust laws and created a monopoly allowing them to pay their fighters far less than they deserved. Cung Le was a middleweight fighter who competed between 2011 and 2014 and is one of the three fighters along with Nathan Quarry and Jon Fitch who filed the suit against Zuffa LLC.
Joseph Saveri, Co-Lead Council representing the fighters stated that the “UFC pays its fighters a mere fraction of what athletes make in similar sports such as boxing.” Further, the suit alleges that the UFC used its monopoly in the mixed-martial arts (MMA) market and anticompetitive measures to exert “control” over their fighter’s careers, drastically reducing potential earnings in their original complaint. The UFC’s use of exclusive contracts with top talent prohibits them from joining potential rival promotions and seeking opportunities outside of the company. Clauses such as ‘retirement clauses’ in contracts even allow the UFC to retain the rights of retired fighters in perpetuity.
Tension within the organisation
But apart from these incredibly restrictive contracts which fighters often have no choice but to sign, fighters were often threatened and faced retaliation for attempting to work with rival promotions. B.J. Penn, former featherweight champion with over 30 fights in the UFC, revealed in his autobiography in 2010 a conversation with Dana White, CEO and president of the company.
“K-1 was offering me $187,500 per fight – five times what the UFC was offering – and I was still willing to stay with them for one-third of that amount. This was when the relationship took a turn for the worse and my view of White changed drastically.”
More recently, heavyweight sensation Francis Ngannou decided to split ways with the UFC in 2023 after he attempted to negotiate better pay for fighters and health insurance. Unable to reach terms for a contract extension, he was eventually stripped of his title before pursuing a career in professional boxing. Along with the claims of the lawsuit, Ngannou revealed in an interview that some fighters do not earn enough to pay for health insurance. However, in his professional boxing debut against heavyweight champion Tyson Fury, it is estimated that Ngannou earned an estimated $10 million, compared to the $600,000 he earned in his 14th and last fight for the UFC.
The disparity in pay between what Ngannou earned in his boxing debut versus after fighting in the UFC for 8 years is exactly the “loss” that the suit alleges fighters have suffered due to the anticompetitive conduct of the company. The $375 million settlement however comes only after US District Court Judge Richard Boulware rejected a proposed $335 million settlement earlier in the year. While this case might have just been settled, it is not the only pending litigation against the UFC with former fighters Kajan Johnson and C.B. Dollaway also pursuing a class-action antitrust lawsuit with similar claims.
SportUFC: What does the recent $375 million settlement mean for its future?
While top-ranked fighters who headline main events can earn millions per fight, the argument that the company does not pay their fighters as much as they deserve has caused big names like Francis Ngannou and Demetrious Johnson to jump ship, with some even choosing to take legal action. In 2014, a class action lawsuit was filed against the parent company of the UFC (Zuffa LLC).
Cung Le v. Zuffa, LLC alleges that the UFC violated antitrust laws and created a monopoly allowing them to pay their fighters far less than they deserved. Cung Le was a middleweight fighter who competed between 2011 and 2014 and is one of the three fighters along with Nathan Quarry and Jon Fitch who filed the suit against Zuffa LLC.
Joseph Saveri, Co-Lead Council representing the fighters stated that the “UFC pays its fighters a mere fraction of what athletes make in similar sports such as boxing.” Further, the suit alleges that the UFC used its monopoly in the mixed-martial arts (MMA) market and anticompetitive measures to exert “control” over their fighter’s careers, drastically reducing potential earnings in their original complaint. The UFC’s use of exclusive contracts with top talent prohibits them from joining potential rival promotions and seeking opportunities outside of the company. Clauses such as ‘retirement clauses’ in contracts even allow the UFC to retain the rights of retired fighters in perpetuity.
Tension within the organisation
But apart from these incredibly restrictive contracts which fighters often have no choice but to sign, fighters were often threatened and faced retaliation for attempting to work with rival promotions. B.J. Penn, former featherweight champion with over 30 fights in the UFC, revealed in his autobiography in 2010 a conversation with Dana White, CEO and president of the company.
“K-1 was offering me $187,500 per fight – five times what the UFC was offering – and I was still willing to stay with them for one-third of that amount. This was when the relationship took a turn for the worse and my view of White changed drastically.”
More recently, heavyweight sensation Francis Ngannou decided to split ways with the UFC in 2023 after he attempted to negotiate better pay for fighters and health insurance. Unable to reach terms for a contract extension, he was eventually stripped of his title before pursuing a career in professional boxing. Along with the claims of the lawsuit, Ngannou revealed in an interview that some fighters do not earn enough to pay for health insurance. However, in his professional boxing debut against heavyweight champion Tyson Fury, it is estimated that Ngannou earned an estimated $10 million, compared to the $600,000 he earned in his 14th and last fight for the UFC.
The disparity in pay between what Ngannou earned in his boxing debut versus after fighting in the UFC for 8 years is exactly the “loss” that the suit alleges fighters have suffered due to the anticompetitive conduct of the company. The $375 million settlement however comes only after US District Court Judge Richard Boulware rejected a proposed $335 million settlement earlier in the year. While this case might have just been settled, it is not the only pending litigation against the UFC with former fighters Kajan Johnson and C.B. Dollaway also pursuing a class-action antitrust lawsuit with similar claims.
So what does this mean for the future of UFC?
While the UFC continues to gain international popularity and increase viewership figures, will the legal battles they are fighting have any actual impact on the relationship between the company and its fighters? The UFC is still undoubtedly the biggest MMA promotion in the world, but rival promotions like ONE Championship, Cage Warriors and Bellator have begun to fight for their share of viewership and revenue.
In 2023 the UFC recorded an all-time high annual revenue of $1.3 billion, yet the beginning pay for a fighter is just $12,000 from which they must pay their gyms, managers and so on. Many top fighters have had to resort to working secondary jobs while pursuing this career line just to be able to afford their expenses like Geoff Neal and Al Iaquinta.
But will this recent settlement change how the UFC employs fighters as independent contractors with strict contracts? What does it say when they are willing to let go of top talent when they wish to negotiate for better pay and conditions? While the official statement from the UFC after the settlement gave little to no insight, Eric Cramer, the lead attorney representing the fighters plans to “vigorously pursue claims.” The UFC continues to deny any wrongdoing and as long as it continues to dominate the world of MMA, it is hard to see other promotions becoming the prime destination for up-and-coming talent.
EG explores the controversy around UFC and the payment of its fighters.
SportUFC: What does the recent $375 million settlement mean for its
While top-ranked fighters who headline main events can earn millions per fight, the argument that the company does not pay their fighters as much as they deserve has caused big names like Francis Ngannou and Demetrious Johnson to jump ship, with some even choosing to take legal action. In 2014, a class action lawsuit was filed against the parent company of the UFC (Zuffa LLC).
Cung Le v. Zuffa, LLC alleges that the UFC violated antitrust laws and created a monopoly allowing them to pay their fighters far less than they deserved. Cung Le was a middleweight fighter who competed between 2011 and 2014 and is one of the three fighters along with Nathan Quarry and Jon Fitch who filed the suit against Zuffa LLC.
Joseph Saveri, Co-Lead Council representing the fighters stated that the “UFC pays its fighters a mere fraction of what athletes make in similar sports such as boxing.” Further, the suit alleges that the UFC used its monopoly in the mixed-martial arts (MMA) market and anticompetitive measures to exert “control” over their fighter’s careers, drastically reducing potential earnings in their original complaint. The UFC’s use of exclusive contracts with top talent prohibits them from joining potential rival promotions and seeking opportunities outside of the company. Clauses such as ‘retirement clauses’ in contracts even allow the UFC to retain the rights of retired fighters in perpetuity.
Tension within the organisation
But apart from these incredibly restrictive contracts which fighters often have no choice but to sign, fighters were often threatened and faced retaliation for attempting to work with rival promotions. B.J. Penn, former featherweight champion with over 30 fights in the UFC, revealed in his autobiography in 2010 a conversation with Dana White, CEO and president of the company.
“K-1 was offering me $187,500 per fight – five times what the UFC was offering – and I was still willing to stay with them for one-third of that amount. This was when the relationship took a turn for the worse and my view of White changed drastically.”
More recently, heavyweight sensation Francis Ngannou decided to split ways with the UFC in 2023 after he attempted to negotiate better pay for fighters and health insurance. Unable to reach terms for a contract extension, he was eventually stripped of his title before pursuing a career in professional boxing. Along with the claims of the lawsuit, Ngannou revealed in an interview that some fighters do not earn enough to pay for health insurance. However, in his professional boxing debut against heavyweight champion Tyson Fury, it is estimated that Ngannou earned an estimated $10 million, compared to the $600,000 he earned in his 14th and last fight for the UFC.
The disparity in pay between what Ngannou earned in his boxing debut versus after fighting in the UFC for 8 years is exactly the “loss” that the suit alleges fighters have suffered due to the anticompetitive conduct of the company. The $375 million settlement however comes only after US District Court Judge Richard Boulware rejected a proposed $335 million settlement earlier in the year. While this case might have just been settled, it is not the only pending litigation against the UFC with former fighters Kajan Johnson and C.B. Dollaway also pursuing a class-action antitrust lawsuit with similar claims.
SportUFC: What does the recent $375 million settlement mean for its future?
While top-ranked fighters who headline main events can earn millions per fight, the argument that the company does not pay their fighters as much as they deserve has caused big names like Francis Ngannou and Demetrious Johnson to jump ship, with some even choosing to take legal action. In 2014, a class action lawsuit was filed against the parent company of the UFC (Zuffa LLC).
Cung Le v. Zuffa, LLC alleges that the UFC violated antitrust laws and created a monopoly allowing them to pay their fighters far less than they deserved. Cung Le was a middleweight fighter who competed between 2011 and 2014 and is one of the three fighters along with Nathan Quarry and Jon Fitch who filed the suit against Zuffa LLC.
Joseph Saveri, Co-Lead Council representing the fighters stated that the “UFC pays its fighters a mere fraction of what athletes make in similar sports such as boxing.” Further, the suit alleges that the UFC used its monopoly in the mixed-martial arts (MMA) market and anticompetitive measures to exert “control” over their fighter’s careers, drastically reducing potential earnings in their original complaint. The UFC’s use of exclusive contracts with top talent prohibits them from joining potential rival promotions and seeking opportunities outside of the company. Clauses such as ‘retirement clauses’ in contracts even allow the UFC to retain the rights of retired fighters in perpetuity.
Tension within the organisation
But apart from these incredibly restrictive contracts which fighters often have no choice but to sign, fighters were often threatened and faced retaliation for attempting to work with rival promotions. B.J. Penn, former featherweight champion with over 30 fights in the UFC, revealed in his autobiography in 2010 a conversation with Dana White, CEO and president of the company.
“K-1 was offering me $187,500 per fight – five times what the UFC was offering – and I was still willing to stay with them for one-third of that amount. This was when the relationship took a turn for the worse and my view of White changed drastically.”
More recently, heavyweight sensation Francis Ngannou decided to split ways with the UFC in 2023 after he attempted to negotiate better pay for fighters and health insurance. Unable to reach terms for a contract extension, he was eventually stripped of his title before pursuing a career in professional boxing. Along with the claims of the lawsuit, Ngannou revealed in an interview that some fighters do not earn enough to pay for health insurance. However, in his professional boxing debut against heavyweight champion Tyson Fury, it is estimated that Ngannou earned an estimated $10 million, compared to the $600,000 he earned in his 14th and last fight for the UFC.
The disparity in pay between what Ngannou earned in his boxing debut versus after fighting in the UFC for 8 years is exactly the “loss” that the suit alleges fighters have suffered due to the anticompetitive conduct of the company. The $375 million settlement however comes only after US District Court Judge Richard Boulware rejected a proposed $335 million settlement earlier in the year. While this case might have just been settled, it is not the only pending litigation against the UFC with former fighters Kajan Johnson and C.B. Dollaway also pursuing a class-action antitrust lawsuit with similar claims.
So what does this mean for the future of UFC?
While the UFC continues to gain international popularity and increase viewership figures, will the legal battles they are fighting have any actual impact on the relationship between the company and its fighters? The UFC is still undoubtedly the biggest MMA promotion in the world, but rival promotions like ONE Championship, Cage Warriors and Bellator have begun to fight for their share of viewership and revenue.
In 2023 the UFC recorded an all-time high annual revenue of $1.3 billion, yet the beginning pay for a fighter is just $12,000 from which they must pay their gyms, managers and so on. Many top fighters have had to resort to working secondary jobs while pursuing this career line just to be able to afford their expenses like Geoff Neal and Al Iaquinta.
But will this recent settlement change how the UFC employs fighters as independent contractors with strict contracts? What does it say when they are willing to let go of top talent when they wish to negotiate for better pay and conditions? While the official statement from the UFC after the settlement gave little to no insight, Eric Cramer, the lead attorney representing the fighters plans to “vigorously pursue claims.” The UFC continues to deny any wrongdoing and as long as it continues to dominate the world of MMA, it is hard to see other promotions becoming the prime destination for up-and-coming talent.
