So you thought the case was closed against the UFC? Think again, the Federal Trade Commission just may be reopening a case against the UFC according to sources. This comes after an onslaught of recent bad press. The UFC has come under criticism recently for its anti-drug policy, its new sponsorship deal with Reebok, the subsequent pay structure and a class action lawsuit by some of its former fighters.
In 2012 the FTC cleared the UFC of any wrong doing. The investigation was initially launched shortly after Zuffa, through its subsidiary Forza, LLC, purchased Strikeforce through its parent company, Explosion Entertainment, LLC. The FTC tried to determine whether that acquisition and/or a number of other business practices violated section 7 of the Clayton Act or Section 5 of the Federal Commission Act. The Clayton Act deals with the creation of monopolies and the Federal Commission Act deals with unfair or deceptive acts or practices. From the beginning, Zuffa officials denied that their dominance of the sport constituted a monopoly.
It is unclear at this time what sparked the FTC’s renewed interest in the promotion. It is unknown whether the 2012 investigation has been reopened, or whether a new investigation has been launched. Details are hard to come by at this time but MMA Futures will keep you updated as soon as we find out more.