Industry-Changing UFC Lawsuit Reaches 9-Figure Settlement

The long-standing multi-billion-dollar antitrust lawsuit involving the UFC's parent company TKO and dissatisfied former fighters appears to be nearing its conclusion, as a settlement amount appears to have been reached.

UFC Officially Involved in Class-Action Lawsuit, Over $1.6B in Damages Possible

The fighters were suing the UFC on allegations of unfair business practices, accusing the UFC of having a monopsony on the professional MMA space. The objective of the lawsuit was fair compensation for a class of fighters (roughly 1,200 of them) from a certain date range, or for a rework of the UFC business structure.

This meant the UFC was under threat of having their business model reshaped, whether that was their pay-structure, how they vet and contract prospects, and handle rival organizations. Compensation ranges totaled from $800M to $1.6B, which could have tripled as per antitrust practices.

Pacer records (Courtesy of John S. Nash on Twitter), show the settlement amount to be in the nine-figure range.

"On March 13, 2024, TKO reached an agreement to settle all claims asserted in both class action lawsuits (Le and Johnson) for an aggregate amount of $335 million payable by the Company and its subsidiaries in installments over an agreed-upon period of time. ... The Company anticipates that the settlement amount will be deductible for tax purposes."

This means a payout of around $270K per class member (pre-tax, deductibles, fees, etc.) over the agreed-upon period. The only caveat, however, is that the parties will need to propose their agreement to Judge Boulware for review. If Boulware agrees with the terms, the lawsuit concludes.

It's not clear yet if TKO agreed a business-restructure for the UFC, it's only known that both parties have agreed on a settlement. The UFC will probably continue with their regular business practices. In fact, TKO "anticipates" the settlement amount being tax deductible, meaning no dent in the UFC business model whatsoever.

This settlement is bad news for PFL and ONE. Without regulatory intervention in the MMA industry, there is no chance for them or anyone else of international scale to compete. It's flatly not possible.

How long they last is hard to say, but long-term prognosis is grim.
— Luke Thomas🏋️‍♀️ (@lthomasnews) March 20, 2024

As the UFC secures its position as a leading force in MMA, it underscores the challenge facing competitors like the PFL and ONE Championship, who must vie to bridge the gap in business stature.

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