Potential flaw in new UFC lawsuit in New York

A new wrinkle may surface in the quest to legalize professional MMA in New York.  With a new lawsuit filed by the UFC, a preliminary injunction request filed to hold an event this April, a nuanced detail may trip up the legal strategy.

In its new court filings, the UFC indicates that it has licensed with the World Kickboxing Association (“WKA”) to hold the event in April.  The WKA is an exempt organization under the Combat Sports Law (“CSL”) which bans the sport in the state.  As an exempt organization under the law, it may promote events notwithstanding the law.  Basically, it may hold an event in the state despite the ban.

As indicated by Jim Genia, if a law legalizing professional MMA is passed in Albany prior to an anticipated UFC at MSG this April, the UFC may have some issues.  The reason being is that if the law banning professional MMA in the state is repealed, the exempt organization carve out allowing organizations, such as the WKA to sanction events will also fall by the waysideIf this happens, the UFC’s event in April may be in trouble since the UFC has stated that it is working with WKA to sanction the event.

The legislative session begins in January and there is no way to know when, or even if, an MMA bill legalizing the sport and/or repealing the ban will ever matriculate its way through the various committees, state senate and eventually to the state Assembly for a vote.  If it finds its way to the Governor’s desk for signing, the UFC may have a problem.

Payout Perspective:

There are two big “ifs’ here (among other questions).

1. The UFC must pass a hurdle of getting the court to grant its preliminary injunction request.  Look for stern opposition from the state of New York and an appeal if it loses.  The big news on this, is that if an appeal occurs, there may be a stay in the lawsuit until the appeal is heard.  Thus, it would freeze the new lawsuit until resolution from the Court.  Something like that could take us past the UFC’s intended April event date.
2. If the UFC wins its preliminary injunction (and for some reason there is no appeal and/or resolves in the UFC’s favor), the MMA law in Albany would have to get through before the UFC’s April 23, 2016 date at MSG.

Let’s face it.  I don’t bank on a law passing prior to April 23rd based on what we’ve seen in recent years from New York lawmakers.  MMA supporters have waited for a law to pass legalizing MMA in the state.  The past several years we’ve waited and waited until the final days of the legislative session in June for a vote in the state assembly (the last hurdle before reaching the governor’s desk).  Yet, none has occurred.  Even if a law is passed this year, I doubt it occurs prior to April’s UFC event.

I would suspect that if the UFC wins its preliminary injunction (and any appeal that might occur), it may ask pro-MMA supporters within the legislature (and its lobbyists) to push an MMA bill, but have it occur after the April event.  In the alternative, they could always request the UFC be grandfathered into the MMA law.  Essentially, allowing the WKA to sanction the event but after the event, the MMA law would come into effect.  This assumes that the legal process is swift, which it is not.

First things first, a court will consider the UFC’s preliminary injunction request and at some point the UFC must win for an April event to happen.