Phil Davis files potential class action antitrust lawsuit against TKO/Zuffa for non-UFC fighters

Former UFC light heavyweight Phil Davis has filed a lawsuit in the Federal Court of Nevada which seeks to turn the business of MMA on its head.

Davis’ lawsuit is an offshoot of the now-settled Cung Le, et al. v. Zuffa, the current Kajan Johnson, et al. v. Zuffa and the recently filed Mikhail Cirkunov, et al. lawsuits. The premise is that Davis claims that Zuffa has used its monopoly and monopsony power to suppress fighter pay via anticompetitive measures. Davis is arguing that not only has Zuffa utilized its market power to suppress the pay of UFC fighters, it also has harmed the entire market of professional MMA fighters.

Also of note, Davis argues that the Relevant Input Market that Zuffa is suppressing through purported anticompetitive means is Professional MMA Fighters. He also argues there’s a subset of fighters – the headliners.

Through the controls of the Relevant Input Market, Davis argues that the UFC has used it for anticompetitive means.

Davis argues that the UFC market control disturbs the entire MMA ecosystem because the UFC has the ability to lockdown a big segment of Pro MMA fighters. Thus, other promotions cannot secure Pro MMA fighters for big events and thus it cannot pay fighters like the UFC.

Davis lawsuit seeks specific injunctive relief which would limit exclusionary and restrictive contracts, eliminate arbitration clauses and class action waivers.

In addition, Davis lawsuit implicates TKO in the alleged scheme citing a Mark Shapiro interview with Pat McAfee as well as its presentations where it touts UFC as an important part of its “flywheel.”

Payout Perspective:

Davis’ specific request for injunctive relief presses the current standard in MMA contracts which are restrictive and exclusionary. Davis argues that the contracts eliminate the possibility of competition since fighters are not able to fight elsewhere for comparable pay. Notably, Gegard Mousasi’s lawsuit argues that Bellator “warehoused” him so they didn’t have to pay him his exorbitant pay. There’s the obvious test for this lawsuit if it will pass a Motion to Dismiss. If so, it will be an interesting landscape that TKO and Zuffa will have to defend.