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MX News Update 2024

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Dana White’s $335 Million Setback and UFC Antitrust Lawsuit Prove to Matter as TKO Holdings Generates Huge Revenues in First Quarter 2024, Reports Show

Dana White and the UFC are often accused of exploiting fight contracts and creating monopolies, with fighters underpaid. As the trend continued, some of the UFC’s fighters, both past and present, filed an antitrust lawsuit against the promotion about a decade ago.

After suffering huge losses fighting the lawsuit, the issue was finally resolved after a trial on April 15. However, TKO Group, UFC’s parent company, had to pay $335 million for the fix. According to reports, payment must be made in three installments. But the setback doesn’t appear to be enough to topple the giant organization after it generated huge revenues in the first quarter of this year.

Antitrust lawsuit settlement has no impact on Dana White and TKO Holdings

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Previously, Damon Martin went to X and shared the news about the resolution of UFC’s antitrust lawsuit. Both sides settled when the UFC agreed to pay out $335 million to settle the lawsuit. However, recent sources have confirmed that the setback will not affect the fight promotion or its CEO. TKO Group skillfully generated a massive revenue of approximately $629.7 million in the first quarter.

Jed I. Goodman recently went on X and mentioned that the UFC would have to pay the money in three installments. The first payment is due in the first quarter of this year, while the second installment will be made in the fourth quarter. The first two installments are each $100 million. However, the promotion extended the final $135 million installment, scheduled for the second quarter of next year.

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Furthermore, the settlement is also expected to be tax deductible once the amount is paid. Paying the first two settlement installments wouldn’t make a big dent in the UFC CEO’s wallet, given the significant revenue the UFC’s parent company generated in the first quarter of 2024. “The matter has been resolved with no further changes to the UFC’s existing business operations,” the words reflected in Goodman’s tweet.

All about the antitrust case

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The antitrust lawsuit against the Ultimate Fighting Championship was filed in 2014 by a group of martial artists, involving the former UFC contenders Cung Le, Nathan Quarry, Luis Javier Vazquez, Jon Fitch, Brandon VeraAnd Kyle Kingsbury represent it. These fighters claimed that the MMA promotion violated antitrust laws by suppressing fighter wages and monopolizing the market. The fighters also claimed that this monopoly prevented mixed martial artists from negotiating for a better pay scale and working conditions.

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UFC ran into quite a bit of trouble with the antitrust lawsuit, as the judge denied the request to reopen discovery and set a trial date for April 2024. The class certification appeal was also denied, along with subsequent motions to reopen discovery. After experiencing many setbacks and risking billions of dollars, UFC finally agreed to a settlement by paying a sum of $335 million.

What do you think of the UFC antitrust lawsuit settlement? Head to the comments section and let us know your thoughts.