Josh Thomson and John ‘Big’ McCarthy aren’t convinced the UFC’s latest settlement attempt in its class-action lawsuit is secure just yet. The promotion is grappling with lawsuits from former fighters accusing the organization of exploitative contracts, suppressing wages, and monopolistic practices. The two main suits—Le et al vs. Zuffa and Johnson vs. Zuffa—are holding the UFC’s feet to the fire, and it’s costing them dearly.

Initially, Dana White and the company had seemingly settled the matter with a deal worth $335 million, splitting $300 million for the Le group and $35 million for the Johnson group. But the judge dismissed the offer, calling it woefully inadequate and highlighting other significant issues, forcing the UFC to rethink its strategy. Now, they’ve put forth a new offer—$375 million for the Le group alone—but that doesn’t mean the dust has settled.

Josh Thomson recently issued a warning on the ‘Weighing In’ podcast alongside McCarthy, pointing out that the judge might still throw out this latest deal. “I was sending out texts to John Nash, who we had on the show talking about it, and he’s like, ‘Yeah realistically nothing’s really changed unless the judge approves it.’ So yeah, sure, you can come off with 375, and that sounds great, but if the judge comes back and says ‘no’ [it doesn’t matter]. And I mean, now that it’s 100% $375 [million] to them [Le et al] now, I wonder if anything changed,” Thomson said. “Do now the international fighters get some? Because before they didn’t… There’s other little things that they could have possibly thrown in, I don’t know,” he added.

LAS VEGAS, NEVADA – JULY 06: UFC president Dana White is seen on stage during the UFC 290 press conference at T-Mobile Arena on July 06, 2023 in Las Vegas, Nevada. (Photo by Chris Unger/Zuffa LLC via Getty Images)Thomson also highlighted the sheer risk the UFC faces if this case goes to trial and they lose. He estimated damages could soar to over a billion dollars, making the current settlement look like pocket change. Even the legendary MMA referee McCarthy thought the near $400 million settlement felt insufficient for the magnitude of the case. On top of that, the UFC still needs to work out an agreement with the Johnson group, which could cost them an additional $50 million. And surprisingly, the UFC won’t be the one directly paying for it, adding another twist to this convoluted legal battle.

The stakes couldn’t be higher, and the uncertainty still looms large over the UFC. The court’s approval of this new deal remains uncertain, and as Thomson and McCarthy pointed out, things could still spiral out of control if the judge deems it insufficient. Will Dana White and the UFC be able to escape this legal chokehold, or are they in for an even tougher fight outside the Octagon?

Dana White and Co. will claim lawsuit compensation as tax write-off

It may seem alarming for the UFC to be paying almost half a billion dollars in compensation. After all that is nearly half of the annual profit it made in 2022. However, it seems that the UFC’s finances will not be much affected by this move. The promotion believes that this compensation payout is eligible for a tax write-off.

This simply means the UFC will pay $375 million (plus the Johnson settlement amount) less in taxes, and will thus not have to pay anything extra out of its pockets. Of course, as Thomson pointed out, nothing could be said for certain until the judge actually examines the new deal and gives his approval to the deal.

The UFC, of course, would be desperately hoping this deal gets approved. Going to trail after all, not only could cost it the equivalent of its total annual profits, but also lower its share prices. And that is the capital sin in any private corporation and may cause the UFC’s parent group (TKO Holdings) to shake things up in the organization, maybe even its leadership group.

After all, there was news that the TKO Holding had originally wanted Dana White to step down after buying the promotion last year. And a massive, billion-dollar fiasco may well give them a chance to try again. What are your thoughts on the whole affair?