UFC Agrees to $375 Million Settlement for Le vs. Zuffa Antitrust Case



The
Ultimate Fighting Championship
has offered more money to
resolve one of two antitrust cases against it.

Former Bloody Elbow staff member John
Nash
first reported the news on Thursday of the new
settlement plan
, one that would increase the dollar amount
offered by the UFC while concluding one of the two cases against it
instead of both. This new offer, agreed to by both TKO Group
Holdings—the new parent company of the UFC—and the parties
involved, would be of the sum of $375 million. It is still subject
to approval by Judge Richard Boulware, who has overseen the case
thus far. If the Judge denies this settlement agreement, the
parties will still have a chance to reach another before the trial
currently scheduled for February 2025.

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A decade ago, the UFC’s former parent company of Zuffa was sued for
violating antitrust laws, while engaging in anticompetitive
practices to harm fighters. The accusations were that the UFC paid
fighters less than they should have been making, which harmed other
organizations by keeping fighter salary down. During the suit, two
different classes were formed, with one including competitors
represented by ex-UFC talent Cung Le, who
fought for the UFC in a range of time of 2010 to 2017. Kajan
Johnson
, another former UFC athlete, represents the second
class for those under UFC contracts in 2017 and beyond.

Earlier in 2024, the parties had agreed to a $335 million
settlement, but Judge Boulware rejected it partially on the grounds
that it combined two separate cases into one agreement. The
financial distribution at the time was such that the members of the
Le class would receive most of the money, while those in the
Johnson case would get a much smaller percentage. The reasoning
behind its rejection was not fully explained by Judge Boulware.

This current arrangement would pay the full sum of $375 million to
the class established in the Le case, and it does not appear that
there would be any requirements for the UFC to change its methods
of contract negotiation. The door would still remain open for the
Johnson case to seek such modifications in the UFC’s negotiating
tactics, in addition to seeking damages sustained as a result of
these contracts. As a result, fighters in the Le class would
receive about $70-75 million more than they expected to receive
from the first settlement agreement.

The promotion released a statement about the lawsuits shortly after
the settlement was released.

“We have reached a revised agreement with Plaintiffs to settle the
Le case with terms that we believe address Judge Boulware’s stated
concerns,” the UFC wrote. “While we believe the original settlement
was fair—a sentiment that was also shared by the Plaintiffs—we feel
it is in the best interest 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.”

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