TKO Group, the parent company of the Ultimate Fighting Championship (UFC), has agreed to pay $335 million to settle two class-action antitrust lawsuits from former UFC fighters. This settlement allows TKO to avoid a trial that could have resulted in damages of up to $1.6 billion. The trial, scheduled to begin on April 15 and expected to last four weeks, will no longer occur.
The settlement does not require significant changes to the UFC’s business operations. The $335 million will be paid in three installments: $100 million in the first quarter, $100 million in the fourth quarter, and $135 million in the second quarter of the following year. The settlement is anticipated to be tax-deductible when the payments are made.
TKO Holdings Thrives Despite Minimal Impact from UFC Antitrust Lawsuit
Zuffa, the previous owner of the organization, faced multiple class-action lawsuits from 2014 to 2015 and an additional lawsuit in 2021. The lawsuits claimed that Zuffa violated antitrust laws by underpaying UFC fighters and controlling the MMA market. The initial complaint was filed by Cung Le, Nate Quarry, and Jon Fitch and later joined by Brandon Vera, Luis Javier Vazquez, and Kyle Kingsbury.
On June 23, 2021, Kajan Johnson and C.B. Dollaway initiated a proposed class-action antitrust lawsuit against Zuffa and Endeavor, alleging unlawful anti-competitive practices by the UFC. However, the subsequent settlement reached does not mandate substantial alterations to the UFC’s ongoing business practices.
Instead, the $335 million settlement will be disbursed in three installments: $100 million in the first quarter, $100 million in the fourth quarter, and $135 million in the second quarter.
ALSO READ: Heavyweight Champion Jon Jones Hints at a Mega Fight in the UFC
