New UFC antitrust settlement explained in 90 seconds. pic.twitter.com/sXG0HIrozd
— Erik Magraken (@erikmagraken) September 26, 2024
The Ultimate Fighting Championship has offered more money to resolve one of two antitrust cases against it.
Former Bloody Elbow staff member John Nash first reported the news on Thursday of the new settlement plan, one that would increase the dollar amount offered by the UFC while concluding one of the two cases against it instead of both. This new offer, agreed to by both TKO Group Holdings—the new parent company of the UFC—and the parties involved, would be of the sum of $375 million. It is still subject to approval by Judge Richard Boulware, who has overseen the case thus far. If the Judge denies this settlement agreement, the parties will still have a chance to reach another before the trial currently scheduled for February 2025.
A decade ago, the UFC’s former parent company of Zuffa was sued for violating antitrust laws, while engaging in anticompetitive practices to harm fighters. The accusations were that the UFC paid fighters less than they should have been making, which harmed other organizations by keeping fighter salary down. During the suit, two different classes were formed, with one including competitors represented by ex-UFC talent Cung Le, who fought for the UFC in a range of time of 2010 to 2017. Kajan Johnson, another former UFC athlete, represents the second class for those under UFC contracts in 2017 and beyond.
Earlier in 2024, the parties had agreed to a $335 million settlement, but Judge Boulware rejected it partially on the grounds that it combined two separate cases into one agreement. The financial distribution at the time was such that the members of the Le class would receive most of the money, while those in the Johnson case would get a much smaller percentage. The reasoning behind its rejection was not fully explained by Judge Boulware.
This current arrangement would pay the full sum of $375 million to the class established in the Le case, and it does not appear that there would be any requirements for the UFC to change its methods of contract negotiation. The door would still remain open for the Johnson case to seek such modifications in the UFC’s negotiating tactics, in addition to seeking damages sustained as a result of these contracts. As a result, fighters in the Le class would receive about $70-75 million more than they expected to receive from the first settlement agreement.
The promotion released a statement about the lawsuits shortly after the settlement was released.
“We have reached a revised agreement with Plaintiffs to settle the Le case with terms that we believe address Judge Boulware’s stated concerns,” the UFC wrote. “While we believe the original settlement was fair—a sentiment that was also shared by the Plaintiffs—we feel it is in the best interest of all parties to bring this litigation to a close. As for the Johnson case, that process is in very early stages, and a motion to dismiss the complaint remains pending.”
