Boxing and MMA have long been operating under different rules regarding how fighters pay and what they know about the money behind the fighters. Now, the new push to change the Muhammad Ali Act boxing reform, a law designed to protect boxers from unfair treatment, is sparking new debates about who actually controls fighter salaries.
With major promotional companies like UFC and WWE owner TKO aiming to expand into boxing, they fear that changes to the Ali Act will strip the boxers of key protectiveness and give promoters more power to limit what athletes will acquire. The former Boxing World Champion warned that without the legal protections of the Ali Act, boxers could find themselves in the same position as many MMA fighters.
Muhammad Ari Law
The Muhammad Aliboxing Reform Act, known as the Ali Act, was passed in 2000 to protect professional boxers from promoter exploitation and unfair practices. The law requires promoters to disclose fight financial details, including revenue distribution, to boxers, and is restricted to the ability of power promoters to have through fighters through exclusive contracts. The law also allows boxers to take legal action if the promoter believes it is indissemination or violates the law.
Recently, TKO Group, which owns UFC and WWE, has been seeking an amendment to the Ali Act to expand into boxing promotions. The company hopes to “enhance” its actions to give boxers more opportunities and protection, but details of the proposed changes have not been made public. The move sparked debate about what these changes mean for athletes, particularly in terms of wage transparency and bargaining power.
Former World Boxing Champion Paulie Marignagagi warns that changing the Ali law will allow UFC President Dana White to lower boxers’ salaries, similar to UFC fighters’ current payment methods. Malignaggi points out that an important part of the Ali Act is the transparency it requires from the promoter. In boxing, if the fighter suspects that the promoter is hiding revenue or not paying fairly, the fighter can take the promoter to court or arbitration as the law requires financial information to be disclosed.
In an interview with Spin Genie, Paulie Malignaggi explained.
“One layer of the very important Ali law is the transparency of numbers. Don’t get me wrong. In boxing, it’s still very difficult to force ant act, but here’s what you can do, if you don’t believe that promoters are transparent with full numbers, then boxing can take you to court.
“If Dana doesn’t want you to show it (revenues from the UFC show), there’s no court hearing, because there’s no rule or law that says fighters are entitled to see these numbers.
Unlike boxing, MMA currently has no laws requiring promoters to disclose revenues or negotiate wages in a transparent way. In the UFC, fighters are paid what the contract states and have no legal rights to check the total revenue from the event or to claim larger shares. Malignaggi and other critics argue that if the Ali Act is weakened or altered to match the UFC model, boxers may lose their ability to challenge promoters rather than wages and transparency.
The UFC and TKO say their goal is to create more opportunities for boxers and bring back American sports. However, some fighters and fans are concerned that changing the ALI Act will reduce boxer protection and allow promoters to control wages without supervision. Critics argue that Ali’s actions are one of the few tools that fighters must ensure fair treatment, and that changes need to be examined in detail.
