The Ultimate Fighting Championship and former fighters suing to suppress wages have reached a new agreement in a class action lawsuit accusing mixed martial arts promoters of antitrust violations.
TKO Group, formed from the merger of UFC and WWE, will pay $375 million to settle the lawsuit, according to a securities filing Thursday. The agreement was reached after a previous deal was invalidated by a court for potentially paying too little.
“While we believe the original settlement was fair, a sentiment echoed by the plaintiffs, ending this litigation is in the best interest of all parties,” a UFC spokesperson said in a statement. I feel it’s a benefit.”
The deal resulted in two separate class action lawsuits being resolved for $335 million. The new agreement ends one lawsuit, and the UFC is moving to dismiss the other. Both sides will ask U.S. District Judge Richard Boulware to approve the settlement. The UFC, which is on track to lose more than $4 billion as damages in the antitrust case could triple, said the revised terms “address the concerns[he]expressed. “I will,” he said.
The trial, expected to last four weeks, is scheduled to begin in February and damages are set at about $1.6 billion. At the heart of the lawsuit were allegations that the UFC used long-term exclusive contracts to significantly delay free agency, or in some cases prevent it altogether. The fighters were forced to renew their contracts. Acquired or shut down multiple competing MMA promoters in violation of antitrust laws.
As a result of this alleged scheme, a class action lawsuit alleged that the UFC was exercising “monopoly power.” This is a dynamic in which a single buyer has monopoly power and can purchase labor below market value. Last year, in a pivotal ruling in favor of fighters, the court recognized 1,214 fighters who competed from 2010 to 2017, but not others whose identities were allegedly misused by Dana White’s organization. class of plaintiffs were not certified. You are not allowed to continue.