WWE has a lot of things to worry about in a legal sense, and this new situation could possibly open the door for some big issues down the line. After all, WWE considers their talent as independent contractors, and they don’t want that to change.
A judge in Nevada has given the green light for the advancement of an antitrust lawsuit against the UFC, which alleges the company’s involvement in wage suppression. Originally initiated in 2014, the lawsuit asserts that approximately 1,200 fighters spanning from 2010 to 2017 were inadequately compensated considering the substantial profits amassed by the organization.
U.S. District Judge Richard Boulware has now authorized the fighters to proceed as a class action, as reported by Reuters. The lead attorney for the lawsuit, Eric Cramer, who serves as the chairman of Berger Montague, commented, “The UFC compensates its fighters with a mere 20% of its event revenues, while other major sports, such as boxing, allocate well over 50%.”
William Isaacson, a lawyer representing the UFC from the firm Paul, Weiss, Rifkind, Wharton & Garrison, issued a statement acknowledging, “This marks just a solitary step within an extensive legal process.” Isaacson went on to dismiss the lawsuit as “devoid of legal and factual justification.”
The fighters are reportedly pursuing damages within the range of $811 million to $1.6 billion from Zuffa, the Nevada-based company operating as the UFC.
In a discussion on Wrestling Observer Radio, Dave Meltzer discussed the lawsuit, speculating that a favorable outcome for the plaintiffs could potentially lay the groundwork for analogous actions against WWE. Meltzer suggested that the alleged “misuse of monopolistic influence to suppress salaries” could provide grounds for a case against WWE.
Prior reports have indicated that WWE has experienced a series of record-setting events on a global scale, contributing to heightened company earnings, with the latest significant event being SummerSlam. They are seeing a boom in business right now, and there is no denying that.
Given that WWE is currently engaged in a legal dispute with MLW over allegations of “many years of egregious anticompetitive behavior,” the scenario of the UFC class action reaching trial could potentially bode well for Major League Wrestling. Only time will tell how this story pans out.
Keep checking back with Ringside News as we continue monitoring this ongoing situation. As always, leave your comments below to let us know what you think!