UFC threatens lawsuit against Oklahoma
March 9, 2012
MMA Worldwide reported that Oklahoma is being threatened by litigation from the UFC for imposing a 4% tax on PPV in the state. As a result, the Oklahoma state athletic commission is not taking on any new applications for licenses from MMA promoters.
Via MMA Worldwide:
Unfortunately, after March 31st of this year, combat sport competitions will come to a grinding halt in the state of Oklahoma. The state is under a threat of a lawsuit by none other than the UFC. It seems the UFC wants the state to drop a 4% pay-per-view tax imposed by the state, but without it… they will no longer have the funds necessary to regulate any boxing or MMA events held in Oklahoma.
The article states that over 200 events happen each year across the state. If the state loses out on MMA, the events could remain in the state but on tribal grounds and casinos. It also provides a copy of the letter. Click on the image to read it.
An interesting strong arm tactic by the UFC and it would be interesting to see on what grounds the UFC would sue the state. If you are in Oklahoma, the impact of viewing live MMA might not be harsh considering that the events could move to tribal casinos in the state where federal law trumps state. The state is in a bad position as it claims it needs the revenue from the PPV tax but wants to keep in the good graces of the UFC (and stay away from a potential lawsuit).