UFC releases statement after reaching new $375 million settlement in antitrust lawsuit
09/26/2024 10:00 AM
The UFC has reached a new settlement in one of their antitrust lawsuits.
On Thursday, TKO Group Holdings—the UFC's parent company—filed a disclosure with the Securities and Exchange Commission revealing that the organization had settled with the parties in the Cung Le-led lawsuit, agreeing to a $375 million payout.
See a portion of the disclosure below:
"On September 26, 2024, TKO reached an agreement with the plaintiffs to settle all claims asserted in the Le case for an aggregate amount of $375 million payable in installments over an agreed-upon period of time by the Company and its subsidiaries following the court's denial of an earlier proposed settlement agreement. The terms of the Updated Settlement Agreement have been memorialized in a long form agreement, which will be submitted to the court for approval. The Company anticipates that the settlement amount will be deductible for tax purposes."
A second antitrust lawsuit led by ex-UFC fighter Kajan Johnson was not mentioned in the disclosure.
In March, TKO announced that they had agreed to settle both lawsuits for $335 million. However, in July, the overseeing judge Richard Boulware denied the settlement, and moved for the case to go to trial beginning on Oct. 28.
Following the filing, the UFC released a statement about the settlement in the Le case, and provided an update on where things stand with the Johnson case — which covers athletes from 2017 to present.
"We have reached a revised agreement with Plaintiffs to settle the Le case with terms we believe address Judge Boulware's concerns," the statement read. "While we believe the original settlement was fair — a sentiment that was also shared by Plaintiffs — we feel it is in the best interests 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."
The initial antitrust lawsuit, filed back in 2014 argued that UFC engaged "in a scheme to acquire and maintain monopsony power in the market for elite professional MMA fighter services," citing exclusive contracts, coercion, and acquisitions that eliminated potential competitors, as the main elements to move forward with a suit.
