The parent company of the Ultimate Fighting Championship (UFC), TKO Group, has reached a $335 million settlement with a group of mixed martial artists. The fighters had filed an antitrust lawsuit against the organization, accusing it of suppressing fighter pay by abusing its market position.
| UFC Settles $335 Million Lawsuit with Fighters |
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| The parent company of the Ultimate Fighting Championship (UFC), TKO Group, has reached a $335 million settlement with a group of mixed martial artists. The fighters had filed an antitrust lawsuit against the organization, accusing it of suppressing fighter pay by abusing its market position. The settlement, which avoids a costly trial, also eliminates the risk of potential remedies that could have disrupted the industry’s business model. Full details of the settlement have not yet been filed and court approval is required. |
The parent company of the Ultimate Fighting Championship (UFC), TKO Group, has reached a $335 million settlement with a group of mixed martial artists. The fighters had filed an antitrust lawsuit against the organization, accusing it of suppressing fighter pay by abusing its market position. The settlement, which avoids a costly trial, also eliminates the risk of potential remedies that could have disrupted the industry’s business model. Full details of the settlement have not yet been filed and court approval is required.
The lawsuit sought changes such as a ban on long-term contracts, which would have given fighters more power and potentially allowed new challengers to emerge in the UFC. The settlement also includes a similar lawsuit filed in 2021.
A spokesperson for the UFC expressed satisfaction with the agreement, stating that it will benefit all parties involved. The fighters’ lawyer, Eric Cramer, stated that the plaintiffs are pleased with the result and will present the full settlement to the court for approval.
If the UFC had lost the lawsuit, it could have faced a payout of almost $5 billion. An expert for the plaintiffs had claimed that fighters were deprived of $1.6 billion in pay. The lawsuit accused the UFC of abusing its authority as a monopsony by locking fighters into long-term contracts and paying them a smaller share of revenue compared to other professional sports leagues.
The original lawsuit was filed in 2014 by Cung Le and several other former UFC fighters against the company’s then-parent company, Zuffa. The lawsuits were consolidated into a single action in 2015. TKO Group, the current parent company of the UFC, was formed after Endeavor acquired Zuffa in 2016 and later merged the UFC with World Wrestling Entertainment.
Shares of TKO Group rose 7 percent following news of the settlement, while Endeavor’s shares increased by about 2 percent.
Kevin Draper contributed reporting.
