TKO, parent company of WWE & UFC, has agreed to a settlement in a pair of class action lawsuits that have been in process for a decade: a settlement that will see the former pay out $335 million to former fighters.
The news was revealed Wednesday via an SEC filing. The settlement for both Cung Le vs. Zuffa and Kajan Johnson vs. Zuffa came on March 13th and is a far cry from the $1.6 billion that was originally sought for by plaintiffs like Le, Nate Quarry, Brandon Vera, Kyle Kingsbury, Jon Fitch and others.
Originally filed by Le in 2014, the antitrust suit included as many as 1200 fighters that competed in the UFC at least once between December 16, 2010, through June 30, 2017 and didn’t opt out of the suit. They collectively sued the UFC for lost wages and back pay, claiming the UFC signed them into long-term agreements and then bought up all of their competition, stifling the market.
The difference in the two cases is that while they are similar in nature, they came at different points in time with the Johnson case coming after fighters had signed waivers against being part of a class action lawsuit. The Johnson case was also looking for injunctive relief in addition to damages which would have changed how future contracts could be written. The Le case was seeking just damanges.
How the money is distributed amongst the 1200 fighters is unknown as of now. However, industry reporter John Nash speculated that there will be “likely almost zero damages for Johnson because most signed class action waivers.”
The Mixed Martial Arts Fighters Association (MMAFA) posted on X that they are “pleased with the settlement and will disclose more when we file with the Court in 45-60 days.”
Through a spokesperson, the UFC released the following statement:
The $335 million will be paid out in installments over time and is likely to be tax deductible for TKO. After news of the lawsuit broke, TKO’s stock rose nearly $5 to $86.09 as of this writing.
Over the past year-plus, information has been revealed as part of discovery, including many unflattering text exchanges and emails regarding contracts with UFC personnel including Dana White and former UFC co-owner Lorenzo Fertitta.
In antitrust lawsuits, defendants can be responsible for up to triple the damages, meaning TKO could have been on the hook for upward of $5 billion if the lawsuit went to trial and they lost.
Our Dave Meltzer has previously opined that the result of the lawsuit could open the door for a similar lawsuit by former WWE wrestlers.
