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Khabib didn't use the threat of free agency to get his new deal. He was under the champion's clause still. He hadn't even gotten to the point where a champion's clause would kick in, unless the Iaquinta fight was the last fight on his contract (which seems doubtful for several reasons). Khabib got his pay so high mostly because of the Mcgregor fight and the UFC's Middle East expansion. I don't have any hard info, but if I was spitballing, I would guess that it was just the UFC and Khabib negotiating, and that negotiations between Khabib, Ali, the UFC/WME and Abu Dhabi/Middle East broadcast partners were all connected and that Khabib was supposed to be the face of the UFC's expansion into the ME.
I'm not making stuff up Ali Abdelaziz said thats how he did it
Here is a timestapped video at 8:53 where Ali Abdelaziz tells the story of how he was able to get Khabib such a huge deal. He says he was able to leverage the UFC because Khabib only had 2 fights left on his deal. Unless you think he is lying, he used the threat of free agency to get Khabib a big payday