Zuffa, LLC (Zuffa), the majority owners of the Ultimate Fighting Championship (UFC) have escaped from a potential U.S. government strange-hold on their mixed martial arts (MMA) acquisition of competitor Strikeforce (Explosion Entertainment, LLC).
We are not surprised for many reasons. First, what government agency wants to be on record causing jobs to be down-sized when the U.S. economy is still recovering? Second, MMA is growing rapidly and there are many arguments for consolidation to strengthen the competition and provide more funding for events. Just like the National Football League, National Basketball League, and National Hockey League. In contrast, MMA is a much younger sports than baseball in North America. Baseball was were held by the U.S. Supreme Court is not even be subject to the anti-trust laws of the United States of America.
Third, there are reports that former Strikeforce CEO Scott Coker and many former Strikeforce fighters praised the acquisition. The more interesting question is whether Zuffa's imposition of much higher fees for sports sponsorship for products that directly compete with Zuffa's products (clothing and energy drinks) violate competition (anti-trust) law?
Federal Trade Commission’s Bureau of Competition has closed their nonpublic investigation to determine whether Zuffa, LLC’s acquisition of Explosion Entertainment, LLC may violate Section 7 of the Clayton Act or Section 5 of the Federal Trade Commission Act. Now the FTC has announced that the investigation is closed, as detailed in a letter to the New York City-based law firm Axinn-Veltrop-Harkrider, LLP, which had been retained by Zuffa as its representation before the FTC.
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
WASHINGTON, D.C. 20580
Office of the Secretary
January 25, 2012
Stephen Axinn, Esq.
Axinn Veltrop, and Harkrider LLP
1330 Connecticut Ave., NW
Washington, DC 20036
Re: Acquisition of Explosion Entertainment, LLC (Strikeforce) by Zuffa, LLC (UFC)
FTC File No. 111 0136
Dear Mr. Axinn:
The Federal Trade Commission’s Bureau of Competition has been conducting a
nonpublic investigation to determine whether Zuffa, LLC’s acquisition of Explosion
Entertainment, LLC may violate Section 7 of the Clayton Act or Section 5 of the Federal Trade
Commission Act.
Upon further review of this matter, it now appears that no further action is warranted by
the Commission at this time. Accordingly, the investigation has been closed. This action is not
to be construed as a determination that a violation may not have occurred, just as the pendency
of an investigation should not be construed as a determination that a violation has occurred. The
Commission reserves the right to take such further action as the public interest may require.
By direction of the Commission.
Donald S. Clark
Secretary
See http://www.ftc.gov/os/closings/comm/120125zuffa.pdf
We are not surprised for many reasons. First, what government agency wants to be on record causing jobs to be down-sized when the U.S. economy is still recovering? Second, MMA is growing rapidly and there are many arguments for consolidation to strengthen the competition and provide more funding for events. Just like the National Football League, National Basketball League, and National Hockey League. In contrast, MMA is a much younger sports than baseball in North America. Baseball was were held by the U.S. Supreme Court is not even be subject to the anti-trust laws of the United States of America.
Third, there are reports that former Strikeforce CEO Scott Coker and many former Strikeforce fighters praised the acquisition. The more interesting question is whether Zuffa's imposition of much higher fees for sports sponsorship for products that directly compete with Zuffa's products (clothing and energy drinks) violate competition (anti-trust) law?
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| UFC President Dana White's possible reaction |
Federal Trade Commission’s Bureau of Competition has closed their nonpublic investigation to determine whether Zuffa, LLC’s acquisition of Explosion Entertainment, LLC may violate Section 7 of the Clayton Act or Section 5 of the Federal Trade Commission Act. Now the FTC has announced that the investigation is closed, as detailed in a letter to the New York City-based law firm Axinn-Veltrop-Harkrider, LLP, which had been retained by Zuffa as its representation before the FTC.
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
WASHINGTON, D.C. 20580
Office of the Secretary
January 25, 2012
Stephen Axinn, Esq.
Axinn Veltrop, and Harkrider LLP
1330 Connecticut Ave., NW
Washington, DC 20036
Re: Acquisition of Explosion Entertainment, LLC (Strikeforce) by Zuffa, LLC (UFC)
FTC File No. 111 0136
Dear Mr. Axinn:
The Federal Trade Commission’s Bureau of Competition has been conducting a
nonpublic investigation to determine whether Zuffa, LLC’s acquisition of Explosion
Entertainment, LLC may violate Section 7 of the Clayton Act or Section 5 of the Federal Trade
Commission Act.
Upon further review of this matter, it now appears that no further action is warranted by
the Commission at this time. Accordingly, the investigation has been closed. This action is not
to be construed as a determination that a violation may not have occurred, just as the pendency
of an investigation should not be construed as a determination that a violation has occurred. The
Commission reserves the right to take such further action as the public interest may require.
By direction of the Commission.
Donald S. Clark
Secretary
See http://www.ftc.gov/os/closings/comm/120125zuffa.pdf
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