TKO Group Holdings to Pay $335 Million to Settle UFC Fighter Lawsuits

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ICARO Media Group
Politics
20/03/2024 19h51

The lawsuits alleged that the MMA giant violated antitrust laws, claiming that fighters were paid less than they were entitled to and that other MMA promoters were negatively impacted.

The legal battle began back in December 2014 when UFC's predecessor entity, Zuffa, became the defendant in multiple class-action lawsuits. These lawsuits, filed between December 2014 and March 2015, were eventually consolidated into a single action known as Le et al. v. Zuffa in June 2015. A subsequent lawsuit, Johnson et al. v. Zuffa, was filed in 2021, further adding to the legal complications.

TKO Group Holdings revealed on March 13, 2024, that it had reached an agreement to settle all claims made in both class-action lawsuits. The settlement amount of $335 million will be paid in installments over a period of time, as disclosed in an SEC filing by the company. TKO stated that the terms of the settlement would be documented in a long-form agreement, which will then be submitted to the court for approval. The company further added that it expects the settlement amount to be tax-deductible.

The lawsuits brought against Zuffa alleged that the company violated antitrust laws by underpaying UFC fighters and engaging in practices that harmed other MMA promoters. Some of the initial plaintiffs included well-known UFC fighters such as Cung Le, Nate Quarry, and Jon Fitch, and they were later joined by Brandon Vera, Luis Javier Vazquez, and Kyle Kingsbury. In the most recent lawsuit filed in 2021, Kajan Johnson and C.B. Dollaway made similar allegations of illegal anticompetitive behavior against Zuffa and Endeavor, the parent company of UFC.

TKO Group Holdings was formed through a merger led by Endeavor, the majority owner of TKO. Last year, Endeavor facilitated the merger between UFC and WWE, resulting in the creation of TKO Group Holdings. It is worth noting that TKO also recently settled another lawsuit. In their 10-K filing on February 27, TKO disclosed that they made a $20 million payment to settle a lawsuit filed by MLW Media against WWE in 2022. The lawsuit accused WWE of interfering with MLW's contractual relationships with certain media platforms and engaging in anticompetitive practices. The case was ultimately dismissed with prejudice on December 26.

The settlement of these class-action lawsuits represents a major milestone for UFC and TKO Group Holdings. While the lawsuits have posed legal challenges for the MMA industry, the agreement to settle the claims brings some resolution and allows both parties to move forward. As the settlement proceeds through the court approval process, UFC and TKO will be closely watching the outcome, as it could have significant implications for the future of MMA promotion.

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