A legal showdown between Ultimate Fighting Championship and more than 1,200 fighters suing for wage suppression has come to a resolution. TKO Group, a collaboration between UFC and WWE, has agreed to pay $335 million to settle the class action lawsuit filed by the fighters. The settlement, finalized on March 13, will be disbursed in installments as per a securities filing made on Wednesday.
The settlement brings an end to the litigation and is seen as a beneficial outcome for all parties involved. A UFC spokesperson expressed satisfaction with the agreement, stating that it resolves all claims made in the lawsuits filed by the Le and Johnson classes. The final terms of the settlement will be presented to the court for approval.
The legal battle, which was set to commence on April 15 and expected to last four weeks, had potential damages estimated at around $1.6 billion. The crux of the case revolved around accusations that UFC engaged in practices such as using long-term contracts to restrict free agency, pressuring fighters to renew contracts, and acquiring or shutting down rival MMA promoters in violation of antitrust laws.
The class action argued that UFC's actions gave it 'monopsony power,' a situation where a single buyer holds a monopoly, enabling it to procure labor below market rates. Last year, a significant ruling favored the fighters when the court certified a class comprising 1,214 fighters who participated in matches between 2010 and 2017. However, another group of plaintiffs, who claimed their identities were exploited by UFC, were not permitted to proceed.
In a related antitrust lawsuit, TKO's WWE settled a case in December with a competitor who accused it of monopolizing the professional wrestling media market. WWE disclosed in a securities filing in February that it paid $20 million to resolve the lawsuit, which alleged the company pressured third parties to terminate agreements and potential relationships with MLW.
