On Wednesday, the$ 335 million arrangement reached by UFC’s family company, TKO Group Holdings, and two different UFC fighters who had sued the battle development company for competitive violations was made public.
A number of crucial information about the lawsuit were kept secret, including the settlement’s complete economic damage sum, which was first revealed in a TKO Group Holdings SEC filing in March. Those included information on how the money may be distributed, how it would be distributed to group members, and what, if any, forms of injunctive or future comfort the settlement may contain.
A motion filed this week asking for primary approval from the U.S. District Court Judge Richard Boulware was attached to a copy of the entire colony deal, which was signed on April 24.
According to the agreement, for the next five years, the non- thrive and corresponding period in UFC fighters ‘ contracts will be about five months, where it had formerly been 15 months. These restrictive covenants had been at the center of the antitrust dispute.
In a declaration attached to the plaintiff’s motion, their expert witness, economist Hal Singer, wrote that it was his understanding those term lengths of the contractual provisions had already been reduced in response to the litigation. According to a source with knowledge of the situation, UFC had reduced the” Right to Match Period” and” Exclusive Negotiation Period” in its fighter contracts years ago. ( Singer declined to comment. )
A UFC spokesperson said the organization was “pleased to have reached an agreement” with the plaintiffs.
Within three days of the court granting preliminary approval, the settlement agreement stipulates, UFC would pay$ 100 million into an interest- bearing escrow account for the benefit of the plaintiffs. The remaining$ 135 million must be paid by no later than April 1, 2025, and a second$ 100 million installment must be made by no later than November 1.
The Le class, named for lead plaintiff Chung Le, and the Johnson class, named for Kajan Johnson, were two different fighter class plaintiffs who had each filed a separate lawsuit against the UFC. Nate Quarry, who was proposed to represent a third class which the court declined to certify, is also a named plaintiff in the Le action, and is entitled to$ 250, 000 from the settlement fund.
Net of attorney fees and costs, the remaining funds left to the righters would be approximately$ 215 million, of which$ 161.25 million ( or 75 % ) is the share to the Le class and the remainder to the Johnson class. Several fighters, who are members of both classes, would be entitled to recover claims from both classes ‘ allocations.
According to Singer’s declaration, the settlement fund would pay out Le claimants based on a weighted system that allocates 20 % of the compensation based on the share of fights won. That means that everyone in the class, regardless of what they got paid, would be entitled to compensation.
Singer asserts that distributing the funds in this manner “recognizes that some journeymen fighters with less name recognition may have suffered more as a result of their compensation than the more well-known fighters.”
According to Singer, the Le class receives the bulk of the net settlement fund because the case’s facts were “fully litigated on the verge of trial” and because the Johnson settlement class “probably has lower per-fighter damages.”