UFC’s Parent Company Agrees to $375M Settlement

UFC’s parent company, TKO Group has reached a $375 million (£281 million) settlement related to one of two ongoing legal cases involving approximately 1,200 former UFC athletes. These former fighters claim that UFC contracts limited their ability to negotiate promotional opportunities with other organizations. Initially, TKO Group proposed a settlement of £263 million in March.

However, U.S. District Judge Richard Boulware rejected the offer stating it was insufficient. Consequently, TKO Group believes that the new settlement adequately addresses the judge’s concerns regarding the Cung Le case which was part of the legal disputes. A new court date has been set for February 3, 2025 and the settlement now awaits the judge’s approval.

While TKO Group maintained that the original settlement was “fair,” they acknowledged the necessity to resolve the litigation for the benefit of all parties involved. Moreover, the anti-trust lawsuits collectively seek damages of up to $1.6 billion (£1.25 billion). The legal challenges involve two separate claims. Fighters Cung Le and Nate Quarry filed the first claim in 2014, representing those who competed from 2010 to 2017.

In the second claim, fighters including Kajan Johnson address issues from 2017 onward. Specifically, the 2014 lawsuit alleges that the UFC sought to establish and maintain monopsony power in the market for elite professional MMA fighter services. As for the Johnson case, TKO Group stated that a motion to dismiss remains pending.

Notably, the UFC’s merger with World Wrestling Entertainment (WWE) in 2023 led to the formation of TKO Group.