The UFC antitrust settlement agreement includes new contract provisions for fighters

The UFC closed two antitrust lawsuits by agreeing to pay $335 million to satisfy fighters’ complaints, and now the full settlement agreement has been submitted to the courts.

The settlement between the plaintiffs (fighters) and defendants (UFC) has already been agreed upon by both parties. The court has now also “provisionally” approved the settlement agreement, bringing the lawsuit closer to closure for good.

Under the terms of the agreement, the UFC is expected to place $100 million in an “interest-bearing escrow account” three days after the court initially approves the settlement. A second $100 million payment will be made three days after the court finally approves the settlement or on November 1, 2024, whichever comes later.

The final payment of $135 million is due no later than April 1, 2025.

“In exchange for the release of his claims,” former UFC fighter Nate Quarry is set to receive a one-time payment of $250,000 as part of the settlement agreement. Quarry was one of the original fighters to file an antitrust lawsuit against the UFC in 2014.

The deal also includes a five-year provision for the UFC beginning on the effective date of the settlement agreement to make certain modifications to fighters’ already existing contracts, as well as any new contracts signed during those five years.

Here are the main components:

• The fighters agree to an exclusive negotiation period with the UFC to “extend or renew” the contract, which cannot last longer than 30 days. If a fighter fails to reach an agreement on a contract extension or renewal, athletes may “negotiate with any other promotional entity” depending on the UFC’s ability to match that offer.
• The UFC’s contract matching period cannot extend for more than four months. During that period, the UFC may elect to match the financial terms and conditions of any other offer made to a fighter, and fighters cannot accept or enter into any agreements or contracts with other promotions during this time without adhering to the matching period.
• If a fighter is “unable or unreasonably refuses to compete for any reason” when offered a fight, the UFC retains control to extend the contract for a sufficient period of time to find a new opponent/date or for up to six months, whichever is longer. . “New Discount” means a discount that is different from the one previously offered and rejected.
• If a fighter decides to retire from competition, the UFC can effectively freeze the contract for a maximum of four years or choose to release the fighter from the contract during that time period. Once a retired fighter reaches the four-year mark, the contract automatically expires.
• There is also a clause allowing fighters more freedom regarding name and likeness rights with the UFC retaining “non-exclusive worldwide rights” to use the fighter’s identity.

As a reminder, these changes have been approved temporarily but nothing is official until the court approves the settlement agreement.

Payments made under the terms of the agreement will be placed in the UFC Settlement Fund, which will then be used to make payments to eligible athletes involved in the antitrust lawsuit.

Objections could still be filed, although all signs point to a final hearing where the court will likely sign the settlement agreement to end the proceedings and end the antitrust claims against the UFC.