News UFC reaches $375 million settlement in Antitrust Lawsuit

[MMAcolyte]

Yea, there are 2 things to consider here:
1. lawyers working on contingency for a class action lawsuit get ~20-40% of the settlement
2. plaintiffs are taxed for the full settlement amount, including what gets paid to the lawyers. It's stupid, but that's how the law works

So assuming the contingency is 30%:

• $375M / 1200 plaintiffs = $312,500 per plaintiff
• Plaintiffs get taxed on that $312,500 by the federal government, so depending on their income bracket they'll pay 24% or 32% in taxes (assuming they make no-to-some income aside from this settlement). Let's assume 24% for federal taxes
• Lawyer contingency share = 30%

So not even counting state taxes, each plaintiff is paying at least 54% in federal taxes and lawyer fees. That leaves 46%, or $143,750 per plaintiff.

Obviously, if the contingency fee is higher and the plaintiff has to pay state taxes, a plaintiff might be looking at taking home less than 30% of the settlement amount. That would put the net at under $100k per plaintiff, the figure you estimated.

And according to some Redditors this settlement isn't spread out equally amongst the 1200 fighters. How many fights they had and how important they were to the promotion apparently factors into their individual payouts. But I'm not sure what metric they'll use to determine that.

But guys like GSP, Jones, A Silva, Conor will apparently be getting a lot more than the prelim fighters included in this lawsuit.

 

[MMAcolyte]

So the UFC ups their initial settlelment offer by 12%? They must be banking on a different judge looking at it this time around. That's how they know they will likely get away with it.

 

[Dorkman]

Damn, I'd consider that a win.

For the plaintiffs maybe. But not for the sport. This insures ufcs books stay closed and none of the details get disclosed.

 

[VinceArch]

For the plaintiffs maybe. But not for the sport. This insures ufcs books stay closed and none of the details get disclosed.

True but I meant that nearly 400 million is to be divided up to everyone who won but I wasn't even thinking they would win that much.

 

[fedorthegoat777]

Cung Lee & company takes a win against the UFC to the tune of 375 million.

UFC agrees to $375M settlement in antitrust suit

The UFC reached a $375 million settlement in one of its antitrust lawsuits on Thursday.

www.espn.com

 

[Lord Pyjamas]

Kung-fu wins yet again!
Oh wait that cunt mostly trained Sanshou.
My bad! Sanshou wins?

 

[AstralPanda]

To the legally challenged here

This is very far from a win

It's crumbs compared to what they should've been entitled to.

But I suppose there's levels to lawyers.

 

[HHJ]

Yeah if 335 was way too low I don't see how 375 is that much better.

Thats what im sayin.

If i had to wait however long it was

Im like nah

gimme the 335 now

 

[Cooliox]

For the plaintiffs maybe. But not for the sport. This insures ufcs books stay closed and none of the details get disclosed.

From some of the condemning emails that were released, about how Dana and Lorenzo were playing mafia games in the industry... I can only imagine what all would come to light if this went to trial.

 

[IIIIIIII]

if it doesn't change the way the ufc does business with the fighters, it doesn't mean much. yes, for the fighters receiving money it's great. but in terms of actual change, this is nothing.

 

[Goutfather]

this judge is corrupt as fuck. if he rejects this, they should paper the judge.

 

[Siver!]

So, can the judge not set an acceptable settlement after rejecting the first?

Is this going to go on forever with incremental increases?

 

[TGArthur]

No problem. Just raise PPV from $60-$89 and make the sucker consumers pay for it.

 

[fedorthegoat777]

How much do these lawyers get?

Probably a third.