UFC’s $335 Million Settlement With Fighters Ends Wage Dispute

A $335 million settlement between the Ultimate Fighting Championship and hundreds of fighters is expected to gain final approval by September, ending a multiyear clash over claims the league suppressed wages.

TKO Group Holdings Inc., parent of the UFC mixed-martial arts league, said Wednesday it reached a deal to settle two class-action lawsuits involving its fighters. The proposed deal, whose details are under negotiation and must be approved by the US District Court for the District of Nevada, means the UFC would avoid lengthy litigation, with a trial that had been scheduled next month in which fighters sought $1.6 billion in damages.

It’s still unclear exactly how much money any individual fighter would get, and how the settlement could be adjusted. Judges typically look at various factors when approving settlements, including the odds of plaintiffs and defendants winning a suit, the total amount awarded to consumers, attorneys’ fees, and how funds would be distributed.

“We are pleased with the result, and we look forward to presenting the details of the settlement to the court for approval in the next few weeks,” said Eric Cramer, chairman of Berger Montague PC and an attorney for the plaintiffs. Cramer said the court could provide final approval of the settlement in September.

A UFC spokesperson said the organization is “pleased to have reached an agreement to settle all claims asserted in both the Le and Johnson class action lawsuits, bringing litigation to a close and benefiting all parties,” according to a statement on Wednesday.

Cung Le is one of the plaintiffs in the lawsuit over wage suppression, while Kajan Johnson is part of a separate but related suit that covers UFC fighters who fought since 2017. About 1,200 fighters won class action status in the Le lawsuit last year.

UFC has argued the fighters’ claims are legally and factually meritless and that the company’s continued growth, along with the prevalence of successful new market entrants, demonstrate the existence of a healthy and competitive mixed martial-arts market.

The proposed settlement comes nearly a decade after a group of mixed martial artists sued UFC, arguing the company abused its power over their labor and depressed their wages.

The plaintiffs are represented by law firms including Berger Montague PC. UFC is represented by law firms including Paul Weiss, Rifkind, Wharton & Garrison LLP.

The cases are Le v. Zuffa, D. Nev., No. 2:15-cv-01045, 3/20/24 and Johnson v. Zuffa, D. Nev., No. 2:21-cv-01189, 3/20/24.