Bloomberg News reports that UFC fighters signed waivers which were wide ranging which included a non-disparagement agreement and acknowledgment of that hospital services in the area “may be unusually limited,” and no guarantees about whether they could be treated against COVID-19.
I was quoted in the Bloomberg article which also includes other sources commenting on the document signed by all in attendance at UFC 249.
The agreements were disclosed to the media prior to UFC 249. The waiver athletes signed indicated that they would have to stay away from any individual that might be COVID-19 positive for at least 4 weeks post-event. Also, it included a non-disparagement clause which claimed that the athlete could not “suggest or communicate” that the event is being held “without appropriate health, safety or other precautions.” If violated, the UFC has the right to revoke “all or any” money won by the athlete.
The clause is significant because it seems to put a chilling effect on any participant signing the waiver. Even if the comments may be truthful, the clause may prevent someone from speaking out due to concern that they may be subject to the clause and the revocation of money. White told Yahoo! Sports that it only applies to anyone that lies. Of course, there is always a gray area when it comes to truth and falsity of claims.
White indicated that there is a disparagement clause in all of the UFC contracts post-event.
ESPN noted that not only athletes were required to sign off on a liability waiver, but the media in attendance had to execute the document prior to UFC 249. According to ESPN’s Marc Raimondi, the waiver includes the assumption of risk for participants if they test positive for the coronavirus and releases the UFC from any responsibility in case of infection. It also includes the “non-disparagement” waiver.
Payout Perspective:
Most UFC contracts include waivers which indemnify itself from liability. They include disparagement clauses but with the unique nature of UFC 249 the contract is coming under closer scrutiny. It was acknowledged that there are certain clauses within the waiver that may not be enforceable such as an affirmative duty for the athlete to steer clear of anyone that might be COVID-19 positive 4 weeks post-event. This would be hard for the athlete considering they are not a doctor and would not know if someone has underlying conditions. Also, as written above, the disparagement clause has a chilling effect on speech.
COVID-19 liability as the public reopens will be something to look at in employment and labor law. Companies will look at ways to limit its liability during this unknown period.
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