How a Saudi-Backed Venture May Undermine the Sport’s Protections

A new bill in Congress, the Muhammad Ali American Boxing Revival Act, has sparked concerns that it may pave the way for a Saudi-backed takeover of professional boxing. The legislation, introduced by US representatives Brian Jack and Sharice Davids, aims to modernize federal regulations in the sport, but critics argue that it would allow a Saudi-backed venture to bypass the current sanctioning bodies and adopt a model similar to the UFC.

The bill would create alternatives to the World Boxing Organization (WBO) and World Boxing Council (WBC), known as Unified Boxing Organizations (UBOs), which would be controlled by a new venture called Zuffa Boxing. This venture, backed by Saudi Arabia’s Public Investment Fund (PIF), would be able to establish its own ranking system and championship belts, effectively gutting the protections provided by the Ali Act.

“This is a concerning bill for professional boxers,” said Erik Magraken, a combat sports regulatory lawyer. “It guts the key protections from the Ali Act for promoters that choose to use the ‘unified boxing organization’ model. It allows a promoter to control rank and title… and achieve a stranglehold on the sport.”

The Ali Act, passed in 2000, was designed to protect the rights and welfare of boxers by providing federally-backed oversight and enforcement. The new bill, however, would allow a Saudi-backed venture to operate outside of this oversight, potentially leading to the exploitation of fighters.

The UFC model, which is based on the idea of fighters competing for titles and promoters competing for boxers, has been criticized for its exploitation of fighters. The UFC pays its athletes a significantly smaller share of revenue compared to other major sports leagues, with many fighters earning as little as $10,000 to $20,000 per fight.

According to a report by the National Federation of State High School Associations, the average annual income for an NFL player is around $1.9 million, while the average annual income for an NBA player is around $7.4 million. In contrast, the average annual income for an NFL player is around $400,000, while the average annual income for an NBA player is around $200,000.

The proposed legislation has received support from some in the boxing community, including Muhammad Ali’s widow, Lonnie Ali, who was quoted in the press release as saying that “Muhammad would be proud to have his name associated with this bill.” However, critics argue that the bill would undermine the protections provided by the Ali Act and allow a Saudi-backed venture to dominate the sport.

The bill’s co-sponsor, Sharice Davids, is a former MMA fighter who has ties to the UFC. Her involvement in the bill has raised questions about the influence of the Saudi-backed venture on the legislation.

“It’s no secret that the UFC has been trying to expand its reach into boxing for years,” said a spokesperson for the International Boxing Federation. “This bill would be a major step in that direction, and it’s concerning that it would allow a Saudi-backed venture to operate outside of the Ali Act’s protections.”

The Ali Act overhaul has significant implications for the future of professional boxing, potentially paving the way for a Saudi-backed takeover of the sport. As the bill makes its way through Congress, critics are calling for greater oversight and protection for boxers.

“It is unclear when the bill will reach the House floor, as Congress will be in recess through the entirety of August,” said a spokesperson for the US House of Representatives. “However, the bill has received support from some in the boxing community, and its implications for the sport are significant.”

The fate of the Ali Act overhaul remains uncertain, but one thing is clear: the future of professional boxing hangs in the balance.

Background on the Ali Act

The Muhammad Ali Boxing Reform Act was passed in 2000 to protect the rights and welfare of boxers. The law provides federally-backed oversight and enforcement, including transparency mandates and financial disclosure requirements. The Ali Act was designed to reduce the exploitation of fighters through coercive contracts and corrupt sanctioning bodies.

History of the UFC Model

The UFC model, which is based on the idea of fighters competing for titles and promoters competing for boxers, has been criticized for its exploitation of fighters. The UFC pays its athletes a significantly smaller share of revenue compared to other major sports leagues, with many fighters earning as little as $10,000 to $20,000 per fight.

Saudi Arabia’s Influence in Sports

Saudi Arabia has been expanding its influence in sports in recent years, including its acquisition of the English Premier League’s Newcastle United football club. The country has also invested heavily in the world of boxing, including its backing of the Zuffa Boxing venture.

Legislative History of the Ali Act

The Ali Act was passed in 2000 as part of a larger effort to reform the sport of boxing. The law was designed to protect the rights and welfare of boxers, including their financial and medical well-being. The Ali Act has undergone several amendments over the years, but its core provisions have remained largely intact.

Timeline of the Ali Act Overhaul

• February 2025: TKO Holdings Group, which owns both the UFC and WWE, hints at plans to overhaul the Ali Act during an appearance on the Pat McAfee Show.
• March 2025: Rumors begin to circulate that TKO is working to amend the Ali Act to make way for its new boxing venture with Saudi Arabia.
• June 2025: US representatives Brian Jack and Sharice Davids introduce the Muhammad Ali American Boxing Revival Act in Congress.
• July 2025: The bill receives support from Muhammad Ali’s widow, Lonnie Ali, who says that “Muhammad would be proud to have his name associated with this bill.”
• August 2025: The bill is expected to be debated in Congress, with critics arguing that it would undermine the protections provided by the Ali Act and allow a Saudi-backed venture to dominate the sport.