wow, this could be huge
For months, Bloody Elbow reporters John Nash and Brent Brookhouse have been investigating rumors of a class action lawsuit against the UFC by former and current fighters. Bloody Elbow can now confirm through multiple sources that such a lawsuit is not only in the works but that a filing is imminent.
While we have been told the names of several potential signatories we have as yet been unable to confirm that those names will appear on the complaint. As was told to Bloody Elbow, the recent announcement of the Reebok sponsorship deal with the UFC appears to have reached into the suit, resulting in some strategic changes.
We have been able to confirm that the suit will be based on accusations that the UFC has violated antitrust laws by abusing their "market power" to intentionally and systematically cripple the free market. Several of the individuals we spoke to compared it to the recent San Jose hi-tech employee and NCAA antitrust cases. The manager of one high profile fighter who wished to remain anonymous has informed Bloody Elbow that the plaintiffs will be seeking damages for potentially hundreds of millions of dollars due to reduced fight purses, video game rights fees, and other sources of income. The final amount could even be greater, with statutes awarding "treble damages" in antitrust cases.
Another manager referred to the pending suit as "a game changer."
According to our sources the fighters are represented by three or four large firms renowned for antitrust litigation. The firms named to us have won major class action antitrust cases against bigger targets than the UFC, including against those in the banking, credit, technology and pharmaceutical industries.
As one well known former fighter told us "These are major players. These are not people [the UFC] will be able to out-spend."
While we can not release names of the potential signatories at this time, the names that have been reported to us are notable fighters and personalities in the sport.
Bloody Elbow has reached out to the UFC for their comments on the pending suit and we will provide updates as they become available.
Keep your browser locked on Bloody Elbow in the coming days and weeks as we will have much more about the lawsuit, which has very legitimate potential to completely alter the way UFC business operates.
18 Feb ’12
I really wonder how this will play out in court because the story of combat sports as entertainment is promoters making the lion's share, a couple of stars making big purses, and the rest of the fighters making a pittance.
The UFC did buy and kill Pride and Strikeforce, but they were already dying brands. The UFC has pretty much left Bellator alone other than Dana bad mouthing them in the media. It's hard to accuse the UFC of anything other than bad investments that they let die.
If the plaintiffs are claiming the UFC cripples the "fighter free market", they are guilty of holding fighters to contract out of spite, but that doesn't seem to be illegal.
Tito and Ken will probably end up in the same nursing home, angry old men, with Ken yelling through toothless gums at Tito "I'll beat you to a living death!"
19 Feb ’12
ashleigh11 said
I really wonder how this will play out in court because the story of combat sports as entertainment is promoters making the lion's share, a couple of stars making big purses, and the rest of the fighters making a pittance.The UFC did buy and kill Pride and Strikeforce, but they were already dying brands. The UFC has pretty much left Bellator alone other than Dana bad mouthing them in the media. It's hard to accuse the UFC of anything other than bad investments that they let die.
If the plaintiffs are claiming the UFC cripples the "fighter free market", they are guilty of holding fighters to contract out of spite, but that doesn't seem to be illegal.
Tito and Ken will probably end up in the same nursing home, angry old men, with Ken yelling through toothless gums at Tito "I'll beat you to a living death!"
Now that's a million dollar idea. Like a modern day Odd Couple. Sounds EPIC!
19 Feb ’12
KVR said
I haven't followed the reebok deal closely, are the fighters getting paid advertising money or is it going to zuffa?
Supposedly it's ALL going to the fighters, and will be based on rankings. The little I've read is that it will be good for the lower level fighters, but the GSPs, Anderson Silvas and John Jones' will lose out.
Now supposedly there is more to this. I don't think there will be any more fighter worn sponsorships in the cage. So the UFC will sell 3-4 spots on the uniforms which it will keep the revenues from. And I believe it will basically be like buying a spot in the Octagon. So lets say Monster Energy buys a spot on the uniforms, then it will be on ALL the fighters, not just one or two.
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