Karate Combat staged its latest event earlier this month, KC58. But the night didn’t begin as planned. The livestream, originally scheduled to start at 7 p.m. ET on YouTube, was hit with a significant delay due to logistical issues surrounding the construction and preparation of the Pit. While that alone might not seem alarming, what followed raised far more serious concerns.

Although the fights played out as expected, reports of unpaid dues involving fighters, vendors, and business partners intensified in the aftermath. The situation has since sparked broader questions about the promotion’s financial stability and operational capability as it heads toward 2026. Adding to the uncertainty, concerns regarding Karate Combat’s licensing status have now also come under scrutiny.

Is Karate Combat really going broke?

A report from Timothy Wheaton of Low Kick MMA highlighted that several fighters have publicly complained about delayed or missing purses. Former PFL champion Emiliano Sordi claimed on December 17 that he still had not been paid nearly two months after his knockout win in October. Sordi accused the promotion of making “multiple false promises” and said its leadership eventually stopped responding altogether. “I did my part. I trained, I showed up, and I competed.”

Sordi’s situation mirrors that of former UFC fighter Luis Peña, who also took to social media to complain about not being paid, only to later delete the post. It has been speculated that Peña was eventually compensated after Karate Combat faced online backlash. Low Kick MMA further confirmed that the issue is not limited to high-profile fighters, as gyms, managers, and other fighters have reportedly faced similar payment issues with the promotion.

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Adding to the concern, MMA Mania’s Alex Behunin has suggested that Karate Combat’s license may now be at risk. “I’m also hearing from multiple sources that Karate Combat is likely to have its promotion license suspended for a year after the debacle of KC58,” Behunin wrote on X. Even staff members have spoken out, with employees turning to social media to express frustration over unpaid work.

Abdullah Bukhari, an employee of the promotion, claimed he has not been paid for the past two months. “I’ve been waiting since July for my 2 months of pending salary (~$1000). I was told it was coming ‘soon’ back in October, but now my messages are being ignored. It’s disappointing to see a global league fail to pay its workers,” he wrote on X. However, the issues surrounding the promotion appear to extend far beyond unpaid fighters, vendors, and staff.

Lawsuits and cryptocurrency issues

Amid mounting concerns over the promotion’s financial stability, Wheaton reports that ITP Productions LLC—the entity behind Karate Combat—has been sued by three production companies for a combined $387,000 in unpaid dues. The Freeman Company, which handled equipment and labor for Karate Combat’s KC46 event in Austin in May 2024, is seeking $221,000 in dues.

Meanwhile, On-Set Services Inc. has filed a $90,000 lawsuit after providing production services across multiple events, including KC 48, KC 49, and KC 50. A third provider, Limitless Lights & Sound, LLC, has also taken legal action, suing for $75,000 for services rendered at KC46. Compounding the company’s troubles, Karate Combat’s $KARATE token—which allows fans and holders to vote on league decisions through a DAO—has crashed to an all-time low.

The situation has fueled accusations of mismanagement, particularly after reports surfaced that CEO Robert Bryan allegedly sold more than 800 million tokens between July and December 2025 through multiple wallets. The sell-off reportedly contributed to the token’s steep decline at a time when fighters, vendors, and staff remain unpaid. In response, a governance proposal has been introduced that would restrict future token grants to Bryan without explicit approval from the DAO.

Whether because of poor management or lack of financial stability, Karate Combat is in trouble heading into 2026.