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TKO Group Agrees to $335 Million Settlement in UFC Fighter Suit

By  |  March 20, 2024
UFC

TKO Group Holdings, the parent company of the Ultimate Fighting Championship (UFC), has reached a $335 million settlement to resolve a long-standing lawsuit brought by fighters within the mixed martial arts organization. The settlement marks the end of nearly a decade of legal battles and comes just weeks before a highly anticipated trial was set to commence.

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    The lawsuit, which was initially filed almost ten years ago, alleged that the UFC, under the management of TKO Group Holdings and its parent company Endeavor, violated the Sherman Antitrust Act by exerting monopoly power to suppress fighters’ earnings. Originally, five separate lawsuits were filed between December 2014 and March 2015, with fighters contending that the UFC’s practices unfairly restricted their pay.

    The litigation gained momentum as the suits were consolidated into a single case in June 2015. However, the UFC and TKO Group Holdings consistently denied the allegations, asserting that fighter compensation had increased over time with the expansion of the UFC’s operations, including the rise in the number of fights and fighters.

    Read more: UFC’s Hopes Dashed as Ninth Circuit Denies Antitrust Appeal

    Endeavor’s acquisition of the UFC in 2016, followed by its complete integration as Endeavor prepared for its IPO in 2021, reshaped the landscape of the mixed martial arts industry. Last year, TKO Group Holdings emerged from a merger between the UFC and World Wrestling Entertainment (WWE), becoming a prominent force in combat sports entertainment.

    In a filing with the Securities and Exchange Commission (SEC) on Wednesday, TKO Group Holdings disclosed that the $335 million settlement would be paid in installments over an agreed-upon period, with the payments deemed tax-deductible. However, final approval from a judge is required before the settlement plan can proceed.

    The resolution of this lawsuit marks a significant milestone for both TKO Group Holdings and the UFC, potentially sparing them from facing damages that could have amounted to as much as $1.6 billion.

    Source: DeadLine