Antitrust Law Daily Wrap Up, ANTITRUST—N.D. Cal.: UFC, fighters agree to mediate suppressed compensation dispute, (Apr 20, 2015)

By Linda O’Brien, J.D., LL.M.

In an action filed against a promoter of live mixed martial arts events allegedly engaged in an anticompetitive scheme to suppress compensation for the event combatants or “fighters” through the use of exclusive contracts, the parties have agreed to participate in mediation. The federal district court in San Jose, California has adopted the parties’ stipulation (Le v. Zuffa, LLC, April 17, 2015, Davila, E.).

Zuffa, LLC, doing business as Ultimate Fighting Championship (UFC), promotes professional mixed martial arts (MMA) contests or “bouts” for live audiences as well as for television, Internet, and pay-per-view broadcasts. The UFC also licenses and distributes merchandise and promotional materials. In December 2014, a group of MMA fighters filed a putative class action complaint against UFC, alleging that the UFC engaged in an anticompetitive scheme to exclude rival MMA promoters through the use of exclusive dealing agreements. They asserted that agreements with UFC fighters lock in their services perpetually and exclusively for the UFC and foreclose rival promoters from accessing MMA fighters’ services.

The parties reported that they conferred regarding their alternative resolution dispute obligations in the case and agreed to participate in mediation at a mutually agreed upon time no later than September 30. The stipulation was adopted and ordered by the court.

The case is No. 5:14-cv-05484.

Attorneys: Andrew Michael Purdy (Joseph Saveri Law Firm, Inc.) for Cung Le. John F. Cove, Jr. (Boies Schiller & Flexner) for Zuffa, LLC.

Companies: Zuffa, LLC

Cases: Antitrust CaliforniaNews