Highlights

  • The UFC has settled the antitrust lawsuit with fighters, agreeing to pay out $335 million in installments.
  • The settlement, subject to court approval, is anticipated to be tax-deductible for the UFC as detailed in the agreement.
  • Approximately 1,200 fighters could receive around $279,166.67 each.

After years of legal battles, the UFC antitrust lawsuit, initially filed in December 2014 by a group of MMA fighters, will no longer proceed to trial. The parties involved have reached a settlement agreement, with the UFC agreeing to pay out $335 million to close the lawsuits.

The agreement, reached on March 13, 2024, encompasses the resolution of claims asserted in both class-action lawsuits, spearheaded by fighters such as Cung Le, Nate Quarry, and Jon Fitch. These fighters alleged that the UFC engaged in "improper strategies" to maintain control over the market for MMA fighter services, resulting in lower pay for fighters and the formation of a monopsony detrimental to MMA athletes.

The UFC Anti-Trust Lawsuit Settlement Is A Tax Write Off

It is Unlikely The UFC Will Change It’s Business Practices

The settlement amount, to be paid by the UFC and its subsidiaries in installments over a specified period, is subject to court approval following the memorialization of terms in a long-form agreement. It's anticipated that the settlement amount will be tax-deductible for the UFC as stated in the document.

"On March 13, 2024, TKO reached an agreement to settle all claims asserted in both class action lawsuits (Le and Johnson) for an aggregate amount of $335 million payable by the Company and its subsidiaries in installments over an agreed-upon period of time. The terms will be memorialized in a long form agreement and then submitted to the court for approval. The Company anticipates that the settlement amount will be deductible for tax purposes."

The lawsuit represented approximately 1,200 current and former UFC fighters, with the court in December 2020 indicating its intention to officially recognize the group as a "class" of fighters. This recognition would allow the fighters leading the lawsuit and their legal representatives to advocate on behalf of the entire group.

Will The Fighters In The Lawsuit Get Paid?

The Fighters In The Lawsuit Will Recieve A Settlement

With approximately 1,200 fighters in the lawsuit, each current and former fighter who participated will receive approximately $279,166.67 each. The settlement appears to be a win for the UFC as the plaintiffs were looking for between $800 million and $1.6 billion.

One study revealed during the anti-trust lawsuit against the UFC, highlighted a stark reality: the UFC wasn't paying its fighters adequately. The study disclosed that the UFC allocated only 18.6 percent of its total revenue to fighters, a figure significantly lower than Major League Soccer's 76 percent, which led the chart in revenue share paid to athletes.