The UFC, part of TKO Group Holdings, has announced a revised agreement to settle the Le and Johnson antitrust lawsuits.
The updated settlement addresses concerns raised by Judge Richard Boulware, following his rejection of a previous $335 million agreement. UFC boss Dana White slammed that decision, and suggested the judge may have a personal vendetta against him and business partner Lorenzo Fertitta.
TKO has now agreed to settle all claims in the Le case for a total of $375 million - $75 million more than the initially offered sum - which will be paid out through instalments. The company expects this settlement amount to be tax-deductible.
While the Le case settlement is moving forward, the Johnson case remains in its early stages. A motion to dismiss remains pending.
UFC Press release:
LAS VEGAS, SEPTEMBER 26, 2024 – UFC, part of TKO Group Holdings (NYSE: TKO), today issued the following statement regarding the Le and Johnson antitrust lawsuits: We have reached a revised agreement with Plaintiffs to settle the Le case with terms that we believe address Judge Boulware’s stated concerns. While we believe the original settlement was fair — a sentiment that was also shared by Plaintiffs — we feel it is in the best interest of all parties to bring this litigation to a close. As for the Johnson case, that process is in very early stages, and a motion to dismiss the complaint remains pending.
On September 26, 2024, TKO reached an agreement with the plaintiffs to settle all claims asserted in the Le case for an aggregate amount of $375 million payable in installments over an agreed-upon period of time by the Company and its subsidiaries (the “Updated Settlement Agreement”), following the court’s denial of an earlier proposed settlement agreement. The terms of the Updated Settlement Agreement have been memorialized in a long form agreement, which will be submitted to the court for approval. The Company anticipates that the settlement amount will be deductible for tax purposes.
The related SEC document is available at SEC.gov.