(This story was updated to add new information.)
A new agreement has been reached in one of the antitrust lawsuits pending against the UFC.
On Thursday, TKO announced a deal with the plaintiffs in the Le vs. Zuffa case for $375 million. That news first was reported by MMA journalist John Nash. However, the settlement must be approved by Judge Richard Boulware of the U.S. District Court of Nevada, who previously rejected a combined $335 million settlement in the Le vs. Zuffa and second Johnson vs. Zuffa cases.
According to the report, this new settlement offer of $375 million is strictly for the Le case – which would represent a $75 million increase over what the plaintiffs in that class would have received had Boulware approved the initial settlement. If approved, the $375 million will be paid out in installments over a period of time still to be determined.
“We believe this new proposed settlement for the Le case is an excellent result for the class of UFC fighters we represent,” Eric Cramer, lead attorney representing the fighters in the UFC antitrust lawsuits, said in a statement to MMA Junkie. “If approved, it would provide immediate monetary relief to over 1,000 fighters who would each recover a significant enhancement to what he or she earned from the UFC during his or her fighting career. We look forward to presenting the proposed settlement to the court for preliminary approved in the near future. We also plan on vigourously pursuing claims on behalf of the fighter class in the later-filed Johnson case, including claims for injunctive relief against the UFC.”
The plaintiffs and TKO announced the initial settlement in March. The lawsuits were seeking between $894 million and $1.6 billion in damages. The plaintiffs agreed to settle for $355 million, but Boulware rejected that settlement in July and said his concern was that the monetary damages against the UFC were not sufficient enough – and that some members of the class only would receive $3,000 in compensation from it.
The $375 million proposed settlement is only for the Le case and does not have bearing on the Johnson case, which seeks injunctive relief. It remains possible that Boulware could reject this settlement, as well, ahead of the trial date.
The Le lawsuit began nearly a decade ago. Five separate class-action lawsuits between December 2014 and March 2015 were eventually consolidated into one (Le, et. al), with a second separate lawsuit filed in 2021 (Johnson, et. al).
The lawsuits centered around alleged violations of the Sherman Act. Class-action lawsuits allow for treble damages, meaning the court could’ve tripled the amount it required the UFC to pay.
The group of former fighters claimed the UFC contract structure and business practices suppressed fighters’ abilities to negotiate and explore other promotional options, creating a monopsony. The efforts were headed by former fighters, including Cung Le, Kyle Kingsbury, Kajan Johnson, Jon Fitch, and Brandon Vera.
If the case goes to trial, the plaintiffs would need a unanimous jury verdict to win damages. Even with a victory, years’ worth of appeals could follow before fighters see compensation or injunctive relief. Because of that, the plaintiffs’ attorneys have pushed for a settlement in the past, given it’s a guarantee for his clients to get something, rather than risk getting nothing.
