Topline
UFC parent company TKO will pay $335 million to resolve two class action lawsuits from former UFC fighters who accused the promotion of violating antitrust laws and suppressing wages, according to a Wednesday SEC filing, allowing TKO to avoid an April trial for the lawsuits that sought up to $1.6 billion in damages.
Key Facts
The settlement will be paid out through periodic payments that will be tax-deductible, according to the filing, with further details of the settlement terms expected to be submitted to the court soon.
More than 1,200 fighters were represented by the lawsuits, which were brought forth by two former UFC fighters and accused the UFC of maintaining a monopoly over the mixed martial arts market and using that power to suppress fighter wages.
The lawsuits sought damages between $894 million and $1.6 billion.
Investment firm Guggenheim Securities said in a report Wednesday that it considers the settlement as a positive outcome for TKO, according to the Hollywood Reporter, citing the company’s ability to easily digest the settlement figure and that it “likely clears an overhand for shareholder returns to be announced potentially later this year.”
The Mixed Martial Arts Fighters Association said in a tweet it was pleased with the settlement, saying the decision was a “victory for past, current and future UFC fighters.”
Tangent
TKO’s stock is up more than 7% as of Wednesday afternoon, trading at nearly $87 per share.
Key Background
Fighter pay has long been a hot button topic in the UFC, as fighters have demanded more pay to help compensate for training costs, employing coaches and maintaining their own healthcare coverage. UFC flyweight champion Alexandre Pantoja told MMA reporter Ariel Helwani last year that during his title run, he worked as an Uber Eats driver to supplement his and his family’s finances. Fighters atop the UFC’s rankings are estimated to be handsomely paid for their performances, which can net them hundreds of thousands of dollars in addition to performance bonuses that can up their payments by $50,000.
Further Reading
UFC Trial: Bisping, Chandler, Sonnen And Others Barred From Testifying (Forbes)
TKO to Pay $335M to Settle Legal Bout Against UFC Fighters Ahead of Trial (The Hollywood Reporter)
