FTC closes second investigation of Zuffa

The Las Vegas Review Journal reports that the Federal Trade Commission has ended its second investigation of Zuffa without any findings of wrongdoing of the company’s business practices.  Although the investigation has ended, the FTC indicated that it reserved the right to investigate the company again if it saw a need. 

In a letter to Zuffa from the FTC, it indicated that the closing of the investigation should not be construed that a violation may not have occurred, just as the opening of the investigation should not be construed that a violation had occurred. 

UFC’s Chief Legal Officer Kirk Hendrick issued a statement on the FTC’s decision:

“Earlier this year the FTC informed us that it was conducting a non-public investigation, which we believe was instigated by former fighters or their attorneys to bolster a civil action against UFC,” Hendrick added, “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. We maintain full confidence in our business practices and continue to believe that the plaintiffs’ allegations are meritless.”

The letter from the FTC, obtained by the Las Vegas Review Journal is below:

UFC FCC by LVReviewJournal

The FTC investigated Zuffa after it had acquired Strikeforce in 2011.  The investigation came to close with no findings in early 2012.  A Freedom of Information Act request for documents from that first investigation revealed little as to their investigation.

Although the reason for the second investigation was not made public one might conclude it was due in part to the antitrust lawsuit filed by former UFC fighters.

Payout Perspective:

Good news for the UFC as it is clear of the investigation.  Moreover, it need not dedicate legal resources for this.  The FTC indicated that it may revisit the issue but one would think it is unlikely to occur unless something comes out of the antitrust case.