Despite Settlement, UFC Wins Antitrust Battle

The settlement in the antitrust lawsuits stands as a massive victory for the UFC

News broke yesterday that TKO Holdings, the UFC’s parent company, agreed last week to pay $335 million to settle two class action antitrust lawsuits.

Stopped just before the championship rounds of a trial, there is a clear winner in this battle–and it is the UFC. Despite the settlement, a sum paltry in comparison to the fees that could have come from trial, the finish of this decade-long fight only makes the UFC even stronger.

Trial was set to begin on April 15. The lawsuits filed by former fighters had the potential to be a landmark case with industry-altering changes, specifically regarding fighter contracts and pay. The central claim was that the UFC had an illegal monopsony–a market place with a dominant buyer–and used anti-competitive methods to hold down fighter wages and hurt rival promotions.

Had it been proven that the UFC acted illegally, it would have forever changed the industry. A victory for the fighters would have forced the whole UFC business model to change. But the UFC was not planning on incurring a billion-dollar loss. And the fighters, more than 1,200 involved in the case, were taking a massive risk by going to trial.

This would have been a fascinatingly complicated trial. The potential also existed the UFC’s attorneys would have poked enough holes the case to put just enough doubt in the minds of jurors. And if this went to trial, costs would have skyrocketed–and there was a chance for no payout whatsoever.

The initial antitrust lawsuit was filed a decade ago in 2014. But this was an example of what happens in a fight between different weight classes. It is extremely difficult to fight a giant, and even harder to defeat one. In the settlement, there has been no mention of fighter contract changes. Ultimately, this will not lead to lasting change for the sport.

In another example of the rich getting richer, the settlement is tax deductible. Unsurprisingly, TKO stock jumped after the news of the settlement became public.

While it did not end the way fighters hoped, the result is clear. The UFC is stronger than ever.