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Ahoy! Scandals on the horizon

While things sure seem pretty good for the UFC at the moment, I’m starting to get this nervous feeling like Zuffa is playing a dangerous game of jenga and the tower is starting to get mighty unstable. Forget all that piddly shit I wrote a few days ago regarding rising costs and lowering returns. There are now two scandals that could very well change the future of the UFC forever:

1. The DSE lawsuit
At first glance, the lawsuit against DSE seems more like a face saving exercise. Who knows much money Zuffa will be able to squeeze out of the company in American courts? But now people are starting to talk about implications relating to the Fertittas’ gaming license. And that’s a big fucking deal:

Pride FC Worldwide is a company that was formed by Lorenzo and Frank Fertitta – the majority owners of Zuffa, LLC and the Ultimate Fighting Championship – to purchase the Pride brand name and related assets from Dream Stage Entertainment, Inc.

Because the Fertittas are involved in the gaming industry – they are part owners of Station Casinos – Dream Stage was supposed to go through a background check and drug testing to ensure compliance with the regulatory requirements of the Fertittas’ gaming license in Nevada.

Things are still foggy at the moment, but trust me when I say the UFC is but another amusement in the Fertittas’ toychest compared to their casino license. If shit starts smelling because of their involvement in MMA, I don’t doubt they’d drop everything to clear their names and hold onto their gambling empire.

2. The Xyience debacle
If the Fertittas dumping millions of dollars into a failing company that dumps it right back into the UFC isn’t fishy enough, now we have the latest accusation:

In order to secure a $325 million loan, the UFC needed to prove a certain amount of annual revenue from sponsors. So, they passed Xyience a bunch of money through questionable means, and Xyience passed it back to show that the UFC was taking in sponsorship revenue; without this arrangement, the UFC wouldn’t have gotten the loan.

So basically if you claim you’ve got big sponsors but the big sponsor is actually just you behind the curtains, then you don’t really have big sponsors. And that means you’re not being truthful. And what’s it called when you’re not truthful on a loan application? Fraud. Oh me oh my.

These two stories haven’t exploded yet and who knows, maybe nothing will come out of them. But I’m not about to ignore two stories which have the potential to affect the Fertittas’ gambling license. Because if it’s the license vs the UFC, you better believe the Fertittas will pick their license. Hell, who knows if they’d even be willing to tarnish their reputation at all in order to try and ride these out?

  • kentyman

    Tarnish the reputation of casino owners? As long as they still have $5 or $10 craps, I’d still visit their casinos.

  • fightlinker

    Yeah but no license = no craps.

  • Captain

    I can’t imagine any lender that would not have required access to Zuffa’s financial statements before making a loan and, therefore, they should have seen the loans to Xyience, unless they completely left those loans off the books. Even if they did and effectively lied to the lender, the lender could still waive it take them out of default. There may be other ramifications in the pending Xyience lawsuit though.

  • twankydawg

    I think whoever wanted to loan them the money could just call the loan due and I’m sure that Zuffa could just pay it off. It will be interesting to see how all this plays out, now all that’s needed is for Dana to end up in a child support hearing for fathering an illegitimate child with Edith Lowrent, and we’ll have a full fledged soap opera on our hands!

  • victorpoprock

    I agree with ya FL. That’s probably why all these rumors about the UFC being for sale is starting to pop up. Vince McMahon publicly said he’s interested in buying the UFC. In an interview on Mr Sunshine, Dana was asked about this and he said that everything is for sale. He said that the UFC isn’t for sale so to speak, but if someone were to offer enough money…..

    The way he put it is “My shoes aren’t for sale. But, If you offer me enough money, you can buy my shoes.” This sort of talk wouldn’t have even come out of his mouth a year ago. Something is going on behind the scenes that we all need to pay very close attention to.

  • jeff aka whaledog

    FYI, about the Xyience stuff . . .

    That bit you quoted as fact is actually a summary of a YoutTube video that excerpts the Fight Opinion Radio show I host. (How’s that for six degrees of separation?)

    Anyway, we do not know for a fact that the UFC passed money to Xyience to help secure it’s loan. What we discussed on the show was that the accusation had been made by Rich Bergeron. We then talked about what impact that would have if it were true and why it would be significant.

    Bottom line – we do not have enough facts yet to know whether this is really a problem or not.

  • RoB

    fightlinker stating non facts as facts to help his cause? pretty much all the time

  • fightlinker

    Fightlinker linking to another site with ‘the latest accusation’? My goodness! Fightlinker letting you guys make up your own minds? Outrageous!

  • RoB

    dammit, must……avoid…….thinking….for myself! Hey im not complainin though i love the way you do business. no homo

  • fightlinker

    By the way, the picture at the top of this post … it’s not real!

    haha, got you all again suckers. THE CAUSE has been furthered now.

  • fightfan


    You fuck with the Fertitta’s, Dana White or the UFC you risk death and embarrassment

  • Big D D

    Man i hope noone is dumb enough to think that is a real photo…..Very funny. Thanks Linker for allowing me to think for myself since noone else will…mom, girlfriend, work, my dogs…noone damnit! ha!