Report: FTC closes second investigation into UFC parent company Zuffa

Dana White

A second Federal Trade Commission investigation into the business practices of UFC parent Zuffa was closed this week, according to a report today from the Las Vegas Review Journal.

On Nov. 20, UFC’s legal counsel was notified that a nonpublic investigation had been concluded though it did not rule out further action by the FTC, the report said.

“After meeting with the FTC, we are pleased that they have sent us a letter stating that no further action is warranted and the investigation is now closed,” Kirk Hendrick, Zuffa’s chief legal officer, told the LVRJ. “We maintain full confidence in our business practices and continue to believe that the plaintiffs’ allegations are meritless.”

The UFC and FTC did not respond to an immediate request for comment.

As with a 2012 investigation opened in the wake of Zuffa’s purchase of the now-defunct Strikeforce, the FTC looked into whether the industry-leading fight promotion had violated Section 5 of the Federal Trade Commission Act, which addresses unfair or deceptive business practices.

A still-pending class-action lawsuit initiated in January alleges Zuffa created a monopoly in the MMA industry and engaged in unfair business practices.

The FTC announced in February 2012 via press release the closing of the investigation, which also attempted to find out whether Zuffa was a monopoly that violated Section 7 of the Clayton Act.

As of this writing, the FTC has not publicly announced the conclusion of the most recent investigation, which began in May with the interview of several industry professionals and managers.

A report from an industry-leading credit reporting agency hinted at FTC’s most recent action. After a blockbuster upset at this month’s UFC 193, Standard and Poor’s ratings services said the commission was expected to close its second inquiry.

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