TKO Group Holdings, the parent company of the UFC, has reached a settlement in two class action lawsuits brought by former UFC fighters for a whopping $335 million. The news of this significant settlement has pleased shareholders, with TKO’s stock price jumping more than 5% within just 20 minutes of the announcement.
Investors are breathing a sigh of relief as the settlement puts an end to the potential damages that could have amounted to a staggering $1.6 billion. As part of the settlement, changes to standard UFC contracts are expected, potentially including a maximum contract length.
While the settlement may result in six-figure payouts for many fighters involved in the lawsuits, it may not bring about the complete realignment of the sport that some had hoped for. Many fighters opted to accept the settlement rather than face the risks of going to trial and potentially receiving nothing.
The settlement has solidified the UFC’s position as the dominant force in MMA, leaving competing organizations hoping for a leveled playing field disappointed. Fans and media may also miss out on the opportunity to gain insights into the inner workings of the UFC as the settlement closes the door on that possibility.
The future remains uncertain regarding lasting changes in the sport, such as fighters forming an association with negotiation power, following the settlement. The Mixed Martial Arts Fighters Association (MMAFA) expressed their satisfaction with the settlement and will provide more information when filing with the court in the next 45-60 days.
Overall, while the settlement brings closure to a long-standing legal battle for the UFC, the ramifications and impact on the sport’s future remain to be seen. The MMA community eagerly awaits to see how this settlement will shape the landscape of the sport in the coming years.
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