Las Vegas, Nevada – TKO Group Holdings, the parent company of UFC, has agreed to pay $335 million to settle two class-action lawsuits brought by former UFC fighters accusing the MMA promoter of violating antitrust laws. The lawsuits alleged that Zuffa, the predecessor entity that owned and operated UFC, underpaid fighters and engaged in anticompetitive behavior.
The lawsuits, originally filed between 2014 and 2015, were consolidated into a single action in 2015. An additional lawsuit was filed in 2021. TKO reached an agreement to settle all claims in these lawsuits on March 13, 2024. The settlement amount will be payable in installments over time.
In their complaint, fighters Cung Le, Nate Quarry, and Jon Fitch accused Zuffa of paying UFC fighters less than they were entitled to and harming other MMA promoters. This initial complaint was later joined by fighters Brandon Vera, Luis Javier Vazquez, and Kyle Kingsbury. In 2021, Kajan Johnson and C.B. Dollaway filed a proposed class-action antitrust lawsuit against Zuffa and Endeavor with similar claims.
TKO Group, formed through the merger of UFC and WWE, is majority-owned by Endeavor. TKO also recently made a $20 million payment to settle a lawsuit filed against WWE by MLW Media, alleging interference with contractual relationships and anticompetitive practices. The case was dismissed with prejudice in December 2022.
The settlement between TKO Group and the former UFC fighters is subject to court approval. TKO anticipates that the settlement amount will be tax-deductible. The agreement will be memorialized in a long-form agreement and submitted to the court for review.
This settlement represents a significant development in the ongoing legal battles surrounding UFC and its treatment of fighters. It underscores the importance of fair compensation practices and adherence to antitrust laws within the MMA industry. As the sport continues to grow in popularity, issues of fighter pay and competition may come under increased scrutiny. The resolution of these class-action lawsuits could have wider implications for the entire MMA landscape.