The UFC has agreed to a $375 million settlement in the Cung Le-led antitrust lawsuit, pending court approval, while a second lawsuit involving fighters from 2017 to present is still in early stages.
The UFC has reached a new settlement agreement in one of the ongoing antitrust lawsuits filed against the company.
On Thursday, TKO Group Holdings—the UFC’s parent company—filed a disclosure with the Securities and Exchange Commission. The organization 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.”
In March, TKO announced that the company had agreed to settle both lawsuits for $335 million. However, in July, Judge Richard Boulware denied the settlement. He moved for the case to go to trial beginning on Oct. 28, before it was pushed again until Feb. 3, 2025 at the most recent status conference.
Much like the original settlement agreement, the court still needs to approve before the case can officially come to a close.
Following the filing, the UFC released a statement about the settlement in the Le case. They also provided an update on where things stand with the second case initially led by fighters such as Kajan Johnson — 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.”
Eric Cramer, lead attorney representing fighters in the lawsuit, also released a statement to MMA Fighting regarding the new settlement agreement and ongoing litigation in the second antitrust lawsuit.
“We believe this new proposed settlement for the Le case is an excellent result for the class of UFC fighters we represent. If approved, it would provide immediate monetary relief to over one-thousand fighters. They would each recover a significant enhancement to what he or she earned from the UFC during his or her fighting career. We look forward to presenting this proposed settlement to the Court for preliminary approval soon. We also plan on vigorously pursuing claims on behalf of the fighter class in the later-filed Johnson case, including claims for injunctive relief against the UFC.”
The plaintiffs and defendants in the Johnson-led antitrust lawsuit recently submitted a brief to courts laying out potential timelines for a trial. The case is still pending at this time.
The initial antitrust lawsuit, filed back in 2014 argued that UFC engaged “in a scheme to acquire and maintain monopsony power in elite professional MMA fighter services.” They cited exclusive contracts, coercion, and acquisitions that eliminated potential competitors as main elements to move forward with a suit.