In a major development, UFC parent company TKO has agreed to pay $335 million to settle two class action lawsuits brought by former UFC fighters accusing the promotion of violating antitrust laws and suppressing wages. The settlement will be paid out through periodic payments that are tax-deductible, with additional details of the settlement terms expected to be submitted to the court soon. Over 1,200 fighters were represented by the lawsuits, seeking damages ranging from $894 million to $1.6 billion.
Investment firm Guggenheim Securities has viewed the settlement as a positive outcome for TKO, citing the company’s ability to easily handle the settlement figure and potentially announce shareholder returns later this year. The Mixed Martial Arts Fighters Association expressed satisfaction with the settlement, calling it a victory for past, current, and future UFC fighters. TKO’s stock has risen over 7% as a result of the settlement, trading at nearly $87 per share.
The issue of fighter pay has been a contentious topic in the UFC for a long time, with fighters advocating for better compensation to cover training costs, coaching expenses, and healthcare coverage. UFC flyweight champion Alexandre Pantoja revealed that he worked as an Uber Eats driver to support himself and his family during his title run. Top-ranked UFC fighters can earn substantial amounts from their performances, with potential bonuses of up to $50,000.
The lawsuits against the UFC alleged that the organization maintained a monopoly over the mixed martial arts market and used its power to suppress fighter wages. The settlement with TKO will help the company avoid a costly trial in April and potentially pave the way for increased shareholder returns. With over 1,200 fighters affected by the lawsuits, the resolution is seen as a significant step towards addressing long-standing concerns about fighter compensation in the UFC.
While the terms of the settlement are still being finalized, the agreement represents a significant milestone in the ongoing battle for fair pay and treatment of UFC fighters. The resolution of the lawsuits will likely have far-reaching implications for the MMA industry as a whole, prompting a closer look at the power dynamics between promotions and fighters. As TKO moves forward from this settlement, the focus will now shift towards ensuring that fighters are adequately compensated for their contributions to the sport.
