UFC antitrust lawsuit: TKO Group reaches new agreement for $375 million with plaintiffs in Le case

A settlement is once again on the table for the ongoing class action lawsuit against the UFC by former fighters. The news comes after a previous settlement attempt was rejected by the presiding judge this past July. The settlement is now pending acceptance by the presiding judge.

The proposed settlement is in the amount of $375 million and the payout would be proportionate to the amount each fighter earned during their fights as well as their amount of fights in the promotion.

There are currently two active class action lawsuits filed by ex-UFC fighters against the promotion. The new settlement relates to the Le vs. Zuffa case, which relates to fighters from the years 2010 to 2017 and was separated from the Johnson vs. Zuffa case, covering the years after, when the joint settlement was rejected in July.

"On Sept. 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," read a SEC disclosure filed Thursday by UFC parent company TKO Group Holdings. "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."

Both sides were disappointed when the initial settlement was rejected. At the time that settlement was filed, Judge Richard Boulware felt the UFC was getting off too light on payout to the fighters in the Le case and without significant changes to UFC's restrictive contracts in the Johnson case.

While the initial intent of both lawsuits was seemingly to not only deliver financial relief to fighters but to also change UFC business practices viewed as predatory by many, actually going to trial is risky for both sides. The UFC could be forced to pay out billions and change their contract structures with a loss in a jury trial while the fighters could be left with nothing if the ruling -- which must be a unanimous jury ruling -- does not go their way. Also, the UFC would be able to file appeals in the event of a loss, meaning it could be years before the fighters see a dime, even if they win the case and all subsequent appeals.

That risk was made clear in a UFC statement issues on the new settlement agreement on Thursday.

"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."

The ball is now back in Judge Boulware's court with the improved settlement for Le vs. Zuffa on the table.