Combat sports have rapidly emerged as one of the fastest-growing sports worldwide, with the UFC taking center stage and winning over fans across the globe. Despite that, many fight promotions have faced significant challenges, with some even shutting down. Earlier this year, the situation intensified when the PFL announced plans to dissolve Bellator and integrate its roster following last year’s acquisition. Now, another UFC rival is fighting a financial battle.

Recently, Karate Combat, which gained attention when UFC champion Alex Pereira’s sister, Aline Pereira, competed there, has faced mounting financial scrutiny. Reports from December revealed that the promotion failed to pay several fighters, prompting many athletes and employees to come forward. With 2026 approaching, speculation about Karate Combat heading toward insolvency has grown, putting the promotion in a serious legal and financial predicament.

Alex Pereira’s sister faces uncertainty as Karate Combat hits financial turbulence

Founded in 2018, Karate Combat became the first sports league structured as a decentralized autonomous organization, giving fans direct control over the league through tokens, unlike the UFC. Asim Zaidi currently leads it as CEO, who initially projected a confident future. However, the league recently came under scrutiny after former PFL champion Emiliano Sordi went public about not being paid.

“It has been almost two months since I fought for Karate Combat, and I still haven’t been paid,” Sordi wrote on X. “After multiple false promises of payment, the CEO of the company stopped responding altogether. I did my part. I trained, I showed up, and I fought. I’m still waiting for them to honor what they owe. This isn’t just about me…. Honoring contracts is not optional.”

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The financial problems extend beyond fighters.

According to LowKickMMA’s Timothy Weaton, Karate Combat still owes money to managers, gyms, production crews, and vendors, leaving hundreds of thousands of dollars unpaid. As a result, three lawsuits have followed, and the CEO also faces accusations of converting hundreds of millions of Karate tokens into ETH.

On top of that, one token holder revealed that the organization removed him via text. “My equity and tokens remain unpaid. This isn’t an isolated case,” wrote Adam S. Kovacs on X.

Many fighters have still not been paid at all, despite the purses going public. The $KARATE price has been hit badly, and the leadership is being criticized for their treatment of the community critics and holding partner payouts.

Karate Combat has hosted many former UFC fighters, including Sam Alvey (Heavyweight Champ, former UFC), Robelis Despaigne, Sasha Palatnikov (ex-UFC), and Luis Pena.

Pena also claimed unpaid wages on social media, though he later deleted the post; sources say public pressure eventually forced the organization to pay him. Altogether, these developments raise a serious question for the MMA world: is another UFC rival organization heading toward collapse?

Five regional promotions face uncertainty after UFC ends partnerships

Over its more than 30-year history, the UFC has expanded either by merging with major MMA promotions like Pride and EliteXC or by building its roster through regional organizations that serve as talent pipelines. These feeder promotions have played a crucial role in developing fighters who eventually became UFC stars. Under Dana White’s leadership, the UFC has grown into a billion-dollar powerhouse.

As the company moves into 2026 and prepares to launch its broadcasting partnership with Paramount+, Dana White & Co. recently made a bold strategic move. This month, the UFC announced it would cut ties with five major feeder partners, including LLFA, Unified MMA, LUX Fight League, Samurai MMA, and UAE Warriors, along with several smaller organizations.

These feeder promotions have historically scouted and nurtured talent for the UFC, producing fighters such as Kamaru Usman, Conor McGregor, and Michael Bisping.

With this latest decision, the future of these organizations in the MMA world now looks uncertain, as many relied heavily on their UFC partnerships to attract fans and sustain growth.