UFC Fighters to Receive Payments from $260 Million Settlement in Landmark Antitrust Case

Nearly a decade after filing a federal antitrust lawsuit against the Ultimate Fighting Championship (UFC), around 2,000 current and former professional mixed martial artists are set to receive payments from a $260 million pool beginning next June. This settlement stems from a lengthy legal battle between fighters and the UFC over restrictive contracts and wage suppression.

Preliminary Approval Granted by Federal Judge

On Tuesday, federal judge Richard F. Boulware granted preliminary approval for a $375 million settlement between UFC fighters and the promotion. The agreement, once finalized, will end the lawsuit known as Le et al. v Zuffa LLC, which was filed in 2014 by fighters such as Cung Le and Jon Fitch. This lawsuit covers UFC fighters under contract from the end of 2010 to the present. Another ongoing case, Johnson et al. v Zuffa LLC, represents fighters signed from July 2017 onward and is still progressing.

The settlement marks a significant moment in UFC history, aiming to compensate fighters for what plaintiffs argue were anti-competitive practices designed to suppress wages.

The UFC’s Rise to Global Prominence

Founded in 1993, the UFC quickly became the world’s leading mixed martial arts (MMA) promotion. In 2001, casino magnates Frank and Lorenzo Fertitta purchased the struggling organization for $2 million. Under the leadership of President Dana White, the UFC grew into a global sports powerhouse. In 2016, the Fertittas sold the UFC to sports giant Endeavor for $4.2 billion, solidifying its place as a dominant force in the entertainment industry.

Today, the UFC is valued at over $12 billion and is publicly traded under TKO Group Holdings alongside WWE.

Why Fighters Sued UFC for Antitrust Violations

The fighters’ lawsuit argued that UFC’s consolidation of rival MMA promotions gave it near-total control over the sport, enabling the company to enforce restrictive contracts and limit wage growth. Plaintiffs claimed that the UFC paid fighters only 20% of the promotion’s revenue, significantly lower than the approximately 50% revenue share athletes receive in other professional sports like the NFL.

This consolidation created a “monopsony,” where the UFC disproportionately controlled the labor market, violating antitrust laws under Section 2 of the Sherman Antitrust Act.

Why Did UFC Agree to the $375 Million Settlement?

Although the UFC maintains it did nothing wrong, the risks of a jury trial were substantial. Potential damages could have ranged between $811 million and $1.6 billion if the court had ruled in favor of the fighters. Judge Boulware’s decision to grant the fighters class action status noted that the plaintiffs suffered economic harm due to the UFC’s anti-competitive behavior.

Both sides agreed to mediation before the trial, scheduled for April 2024. The UFC chose to settle to avoid the prolonged expense, distraction, and risk of a damaging verdict.

How Will the Settlement Be Distributed?

Under the terms of the settlement, eligible fighters will receive payments based on a formula that factors in total compensation paid by the UFC and the number of bouts fought during the class period. Payments vary, with 35 fighters