UFC has agreed to pay $335 million to settle two class-action lawsuits brought by former fighters. The lawsuits alleged anticompetitive behavior and underpayment of athletes. Read more about the settlement and its implications.
| Summary |
|---|
| TKO Group Holdings, the parent company of UFC, has agreed to pay $335 million to settle two class-action lawsuits brought by former fighters. |
| The lawsuits alleged anticompetitive behavior and underpayment of athletes by UFC. |
| UFC maintained its monopoly power by buying out rivals, signing restrictive contracts, and securing exclusive venue deals. |
| Fighters received only a small percentage of revenue compared to athletes in other major sports. |
| The settlement marks the end of a 10-year-long litigation process. |
TKO Group Holdings, the parent company of the Ultimate Fighting Championship (UFC), has reached a settlement of $335 million to resolve two class-action lawsuits filed by former UFC fighters. The lawsuits accused the promotion firm of engaging in anticompetitive behavior and underpaying its athletes.
According to the lawsuits, UFC allegedly engaged in various practices to maintain and increase its monopoly power in the industry. This included buying out or undermining rival promoters, forcing fighters to sign restrictive contracts, and forging exclusive deals with venues. These actions limited the earning potential of mixed martial arts fighters and prevented them from working with potential competitors.
One of the class-action lawsuits highlighted that UFC fighters were paid significantly less compared to athletes in other major sports. While UFC fighters received only 10% to 17% of the total revenue generated from live bouts, athletes in football, basketball, baseball, and hockey earned more than 50% of league revenue.
The proposed settlement brings an end to a decade-long litigation involving multiple class-action suits.
Summary
- TKO Group Holdings, the parent company of UFC, has agreed to pay $335 million to settle two class-action lawsuits brought by former fighters.
- The lawsuits alleged anticompetitive behavior and underpayment of athletes by UFC.
- UFC maintained its monopoly power by buying out rivals, signing restrictive contracts, and securing exclusive venue deals.
- Fighters received only a small percentage of revenue compared to athletes in other major sports.
- The settlement marks the end of a 10-year-long litigation process.
