Major League Wrestling filed an antitrust lawsuit against WWE
The GIST: Major League Wrestling (MLW) is making a play for Boardwalk. Last January, the competitive wrestling promotion filed an antitrust lawsuit against WWE, its top competitor and the largest wrestling company in the world. As the legal battle continues, a recent court filing seems poised to bolster MLW’s claim that WWE has a monopoly on the industry.
The lawsuit: MLW's suit is centered around WWE's stifling control of the media market. Media rights deals are how wrestling promotions make the big bucks, and while WWE has seemingly no problem negotiating new deals worth millions (and millions), MLW claims that WWE secretly ruined potential deals to protect its monopoly, including one with streaming service Tubi.
- The wrestling giant fully expected the case to be dismissed, but a district court denied the motion and advanced the suit. After the decision, WWE's longtime lawyer abruptly left the lawsuit and was replaced with the firm that recently negotiated its $21B merger with UFC.
The new details: And now, a court document has confirmed that WWE promoter Stephanie McMahon spoke with a Tubi exec the day before the Tubi-MLW deal was scheduled to go public. Later that night, the streaming company terminated the deal. WWE denies any involvement, but did confirm that McMahon spoke with Tubi. The plot thickens…
- The document strengthens MLW's antitrust case, as it provides potential evidence of WWE's vice grip on the media market. And it's not the first time it’s happened — MLW CEO Court Bauer said WWE also interfered in MLW’s complicated deal with Reelz.
- According to Bauer, WWE controls 92% of the media rights revenue in the wrestling market and has exhibited "40 years of suppressive tactics" that "extinguish growth and suffocate” its competition, which has also impeded the careers of MLW’s wrestlers. That's what happens when Vince McMahon wants to own all the boats.
What happens next: The lawsuit will move toward discovery, requiring WWE to find and produce documentation refuting MLW's allegations. Considering the exhaustive list of WWE’s monopoly moves, it wouldn't be surprising to see more evidence of other alleged grievances.
- And if UFC loses its own ongoing antitrust lawsuit, the ruling will likely be used against its merger buddy. Gulp.
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