TKO reaches settlement with UFC in antitrust lawsuit in todays Wrestling news
The owners of WWE & UFC have agreed to pay $335 million in damages to the plaintiffs.
TKO, the parent company of WWE & UFC has settled a pair class action lawsuits which have been in progress for a decade. The settlement will see former fighters receive $335 million.
The news was revealed via a SEC filing on Wednesday. The settlements for Cung Le vs. Zuffa as well as Kajan Johnson against Zuffa were reached on March 13th. This is a far cry away from the $1.6 Billion that plaintiffs such as Le, Nate Quarry Brandon Vera Kyle Kingsbury Jon Fitch, and others originally sought.
Le filed the original antitrust suit in 2014. It included up to 1200 fighters who competed at least once in the UFC between December 16, 2010 and June 30, 2017. They didn’t opt-out of the suit. They collectively sued UFC for lost wages, back pay and claiming that the UFC had signed them to long-term contracts and then bought out all of their competitors, stifling market.
The two cases are similar, but they were brought at different times. The Johnson case was brought after fighters signed waivers to avoid being included in a class-action lawsuit. The Johnson case also sought injunctive relief, in addition to damages. This would have changed the way future contracts were written. The Le case sought only damages.
As of yet, it is not known how the money will be distributed amongst 1200 fighters. John Nash, a reporter for the industry, speculated that “almost zero damages will be awarded to Johnson because most of them signed class action waivers.”
The Mixed Martial Arts Fighters Association posted on X, that they were “pleased with settlement and will reveal more when we file our case with the Court in 45-60 day.”
The $335 million will likely be paid in installments and TKO can claim it as a tax deduction. TKO’s stock jumped nearly $5 after the news of the lawsuit was announced. It is currently trading at $86.09.
In the past year, many unflattering emails and text messages regarding contracts with UFC personnel, including Dana White and Lorenzo Fertitta, have been revealed.
In antitrust suits, defendants may be liable for damages up to three times as high. This means that TKO could be on the hook for $5 billion or more if they lost the case.
TKO reaches settlement with UFC in antitrust lawsuit in todays Wrestling news, Chatalong Chatbox, Results will be Hidden inside a spoiler Button so you will not bet spoiled about direct results.
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