The UFC’s Books About To Be Opened in Anti Trust Laswsuit

This past week has seen two crucial developments in the anti-trust lawsuit filed by various fighters against the UFC.  First the UFC lost a motion to dismiss the claim.  Second, the UFC lost a motion to prevent one of the Plaintiff’s key lawyers, Rob Maysey, who was instrumental in getting the litigation underway and founder of the Mixed Martial Arts Fighters Association, from having access to documents disclosed in discovery.

Tweet reporting UFC loses request keeping Maysey from accessign discovery docs

With this hurdle out of the way full discovery is set to begin in the litigation.  Economist and MMA reporter Paul Gift, canvassed what this means at this worthwhile article at BloodyElbow.  The discovery highlights are as follows –

According to a previously filed case management statement, the entire process should take around 16 months. Dana White and Lorenzo Fertitta will certainly be deposed and have to truthfully answer questions under oath. As previously reported by Bloody Elbow, there’s an extensive initial list of UFC employees and other MMA figures who could easily find themselves in a deposition room in the next 12 months.

UFC Employees

Dana White, Lorenzo J. Fertitta, Frank J. Fertitta, Peter Dropick, Jackie Poriadjian, Craig Borsari, Ike Lawrence Epstein, Kirk Hendrick, Ken Berger, John Mulkey, Joseph Silva, Sean Shelby, Edward Muncey, Marc Ratner, Michael Mersch, Tracy Long, Sonja McKinney, Reed Harris, David Safer, Mike Mossholder, Link McCluan, Shanda Maloney, Michael Pine, Steven Gray, Ryan Richeal, Doug Hartling, Marshall Zelaznik, Joe Carr, Garry Cook, David Allen, Michael Britt

Other Key Players

Scott Coker, Rich Chou, Bjorn Rebney, Frank Shamrock, Mike Afromowitz, Fedor Emelianenko, Oscar De la Hoya, Pride executives, Randy Couture, Mark Cuban, Ed Soares, Jeff Aronson, Lex McMahon, Shannon Knapp, Julie Kedzie, Ray Sefo, Ali Abdel-Aziz, Kevin Kay, Ben Askren, Bob Arum, Lou Dibella, Ken Hershman, Bob Meyrowitz, Monte Cox, Rose Gracie, Terry Trebilcock, Vadim Finkelchtein, Turi Altavilla and more.

We’ve also learned more about the discovery process in the past week. The parties are still arguing over how broad the UFC’s document production should be. It was originally slated to take place in two phases and is unknown at the moment if the phases will be consolidated since the motion to dismiss has been denied. Regardless of the phasing, here’s what the UFC has committed to so far.

Organizational Charts

The UFC has produced two 2015 organizational charts. Plaintiffs were not satisfied with this and have proposed that the UFC identify all individuals “who may have potentially relevant information.” Upon review of this information, plaintiffs and the UFC will negotiate “…to identify an agreed number of custodians whose documents and information should be searched for production.”

In other words, whose documents and e-mails should be searched? We know at least nine people are targeted at the moment, and this number could expand.

“Zuffa has proposed to Plaintiffs a list of nine custodians, broken down by topic, who Zuffa believes are most knowledgeable about the subject matter of Plaintiffs’ Complaints.These custodians comprise the three primary decision-makers at the company, the three other individuals primarily responsible for fighter relations, as well as the group leaders for agreements with sponsors, venues and merchandizers.” (Emphasis added)

Financial Documents

The UFC has agreed to provide “detailed financial documents such as consolidated financial statements, event-by-event financial analyses, where available, showing gate receipts, Pay-Per-View revenues, and sponsorship and merchandise revenues and documents showing revenue from other sources that are not contained in the event-by event analyses. Zuffa also proposed to provide financial data sufficient to show each athlete’s event and non-event related compensation in Plaintiffs’ requested format, where possible, on an event-by-event and fighter-by-fighter basis.”

Fighter Contract Files

“Zuffa proposed to provide to Plaintiffs copies of the hard copy Fighter Files for the named Plaintiffs and an agreed upon number of additional fighters selected by Plaintiffs. These hard copy files contain not only the agreements entered into between Zuffa and the fighter but, where applicable, also correspondence related to the contracts, including negotiations, and correspondence regarding extensions and suspensions and related information that Plaintiffs can use to test their allegation that the contracts lock fighters up “in perpetuity.” These files, which include contracts and other information for, at minimum, hundreds of athletes, are extraordinarily voluminous and, given the communications regarding negotiations, contracts, and extensions, contain materials that may be privileged and will require close privilege review. Moreover, because these files contain personally identifiable information (“PII”), such as Social Security numbers, the files will need to be redacted to protect the athletes’ PII. Given those considerations, which will require extensive review of the files prior to production, Zuffa has agreed to produce a representative subset of these files to Plaintiffs in Phase 1. For these and the other files for which Zuffa has offered to provide representative samples, Zuffa has offered to discuss an appropriate sampling method with Plaintiffs.”

Venue Contract Files

“Zuffa has proposed to provide Plaintiffs with the contract files for an agreed-upon number of venues selected by the Plaintiffs. These contract files contain not only the agreement between Zuffa and the venue but may also contain additional information related to the contract, such as correspondence. Given the potential for privileged information in these files, which will require extensive review prior to production, Zuffa has proposed in Phase 1 to provide Plaintiffs with a representative sample of these files.”

Sponsor Contract Files

“Zuffa has proposed in Phase 1 to provide Plaintiffs with the contract files for an agreed-upon number of sponsors selected by Plaintiffs. Like the venue files, these files may also contain additional information such as correspondence related to the agreement. Given the potential for privileged information in these files, which will require extensive review prior to production, Zuffa has proposed in Phase 1 to provide Plaintiffs with a representative sample of these files.”

Merchandise Contract Files

“Zuffa has proposed in Phase 1 to provide Plaintiffs with a representative sample of contract files for an agreed-upon number of third-party merchandisers selected by Plaintiffs. These files are not limited to the agreements but may contain additional information related to the agreement, such as correspondence. Given the potential for privileged information in these files, which will require extensive review prior to production, Zuffa has proposed in Phase 1 to provide Plaintiffs with a representative sample of these files.”

List of Television Contracts

“In Phase 1, Zuffa will provide a list of contracts it has with television distribution outlets. Zuffa will then meet and confer with Plaintiffs regarding a plan for which documents should be produced.”

Third Party Analyst/Consultant Reports

“Zuffa has proposed to search for and produce third-party analyst or consultant reports responsive to this Request found in Zuffa’s financial department.”

FTC Strikeforce Documents

“Zuffa has proposed to produce in Phase 1 all documents produced to the Federal Trade Commission in response to the Commission’s closed investigation of Zuffa’s acquisition of the Strikeforce promotion, the only acquisition in the Complaints that arguably falls within the statute of limitations.”

List of Litigations/Arbitrations

“Zuffa has proposed to initially provide Plaintiffs with a list of litigations and arbitrations with athletes and their representatives related to Zuffa’s contracts, at which point the parties can meet and confer to refine the set of documents responsive to these Requests.”

Advertisements

One thought on “The UFC’s Books About To Be Opened in Anti Trust Laswsuit

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s