The UFC, the elite promotion in the world of mixed martial arts, has been rocked by what is considered by some to be the biggest scandal the organization has faced in more than a quarter century of history. .
But what exactly is going on with respected MMA trainer James Krause, who has been banned from cornering UFC fighters, and why did his fighter Darrick Minner have his contract terminated in the middle of a fight? an ongoing line of play that could lead to very significant consequences?
We look at the fallout from a controversy that could grow and grow.
How did it all start?
In August, James Krause, head trainer at the Glory MMA & Fitness gym in Missouri, appeared on respected mixed martial arts journalist Ariel Helwani’s podcast, reportedly to talk about the recent UFC interim title success enjoyed by his student, Brandon Moreno.
During the show, however, Krause also detailed one of his side projects: the MMA game. He revealed that he operates a Discord channel that has thousands of subscribers where he distributes betting tips on a rolling basis to his followers, many of whom pay up to $2,000 a month for his tips.
Krause even said he would take over the accounts of some of his subscribers and physically place bets online on their behalf, adding that his subscribers had experienced significant success and he personally made a lot more money gambling than he did. as one of the sport’s greatest coaches.
Who is James Krause?
Krause, 36, is a recently retired mixed martial arts fighter turned trainer who posted a career record of 28-8 when he hung up his 4oz gloves, including a 7-1 run in his eight last fights with the UFC.
Fighting primarily at lightweight and welterweight throughout his career, Krause never made it to the top of the UFC rankings, but mingled with some of the sport’s most reputable names such as Jorge Masvidal, Donald Cerrone and Michael Johnson throughout his career.
Lately, Krause had become best known for being the owner and head instructor of Glory MMA & Fitness, which he has operated for several years, and was a regular on fight cards held by the UFC, Bellator and others. . as a cornerman for a host of top MMA fighters.
Several fighters have emerged from his gym to fight for the UFC, with former UFC champion (and current interim champion) Brandon Moreno and Bellator standout James Gallagher currently among those under his tutelage.
How has the UFC responded to reports of fighters and trainers betting on fight outcomes?
With sports betting being regulated in more and more markets in the United States, in October the UFC issued a memo to its fighters informing them that its athletes and anyone in their immediate orbit (such as sparring partners, coaches, managers, physiotherapists, etc.) would no longer be allowed to place bets on the results of fights organized by the organization.
“We are currently obligated to recognize in the UFC Athlete Conduct Policy certain restrictions on betting by our athletes, their team members and certain other individuals. read the memo, in part, posted by UFC chief commercial officer Hunter Campbell.
He added that steps were being taken to ensure that “athletes act in a legal, ethical and responsible manner and avoid any conduct detrimental to the integrity of the UFC organization .”
However, the UFC also said at the time that this memo was not directly aimed at anyone under its employ, but was simply to remind its contractors of their obligations to the company.
What happened in the now infamous fight between Darrick Minner and Shayilan Nuerdanbieke?
This is where things get complicated. One of Krause’s fighters, Darrick Minner, was scheduled to face Shayilan Nuerdanbieke at a UFC event in Las Vegas in early November. However, it was noted before the fight that the betting line changed drastically in the final hours before they entered the cage, with large sums placed on Nuerdanbieke to win the fight in the first round.
Once the fight started, Minner kicked out with his left leg and immediately winced and grabbed his knee. He quickly kicked again with the same leg, before collapsing to the canvas where Nuerdanbieke quickly finished the fight. The whole contest lasted only 67 seconds.
The unusual outcome of the fight initially led to suggestions that Minner was carrying a debilitating injury with him in the cage, which would no doubt have affected his performance – this quickly turning into speculation that bettors had been warned and had been invited to bet on his opponent getting a quick save.
The UFC quickly announced that its betting integrity partner, Don Best Sports, was to investigate the matter, but again stressed that they had “no reason to believe that any of the athletes involved in the fight, or anyone associated with their teams, behaved unethically or irresponsibly. ”
What measures have been taken?
The Nevada State Athletic Commission, the government regulatory body that oversees UFC events in Las Vegas, informed Krause on Nov. 18 that his cornering license had been suspended and would remain so until a thorough investigation is completed.
The UFC, contrary to its previous statements, later added that Minner was released from his UFC contract and not only was Krause banned from attending or being stuck at UFC events, any fighter who trains under him will not be able to continue their careers with the UFC until they completely sever ties with him, effectively telling fighters they need to move gyms if they want to have a future in the game. ‘UFC – at least while the investigation is ongoing.
“The UFC has since informed Krause and the respective managers working with affected fighters, that effective immediately, fighters who choose to continue to be trained by Krause or who continue to train at his gym will not be not permitted to participate in UFC events pending the outcome of the aforementioned government investigations “, indicates the press release of the UFC.
“Additionally, the UFC released Darrick Minner from the organization. .”
How have game regulators reacted?
Various gambling watchdogs have also looked into the matter. New Jersey’s Division of Gaming Enforcement informed its licensed sportsbooks that they were prohibited from accepting bets on any fights that may have any connection to Krause, while the Alcohol and Gaming Commission of Ontario (AGCO) went further by completely banning UFC betting”due to failure to comply with AGCO’s wagering integrity requirements .”
The AGCO’s concern is that UFC gambling policies do not go far enough in prohibiting fighters or trainers, etc., from using inside information to bet on events. No such restrictions have been imposed on other mixed martial arts promotions such as Bellator or the Professional Fighters League.
This was also followed by the Alberta Gaming, Liquor and Cannabis (AGLC) agency, which temporarily banned UFC gaming in its province, although it lifted its ban on Friday following the action taken against Krause by Nevada. State Athletic Commission and the UFC itself. .
What are the potential implications for Krause and the UFC?
For both, the implications could be significant. During a podcast appearance this week, veteran Josh Thomson claimed that various devices such as laptops and tablets belonging to Krause had been seized by authorities – and that he could face a penalty. significant jail time if convicted of acting in violation of the RICO Act (the Racketeer Influenced and Corrupt Organizations Act).
“What people don’t realize is that there are elements to this that are actually taken into account – it falls under the RICO Act. It’s racketeering… It’s like insider trading… There are elements of fraud that are part of it “, said Thomson on his ‘ Weighing‘ podcast.
“There are legal elements here that James Krause could find himself in a position where he is functionally fighting for his freedom. It’s not a small thing, it’s huge.
“They don’t just take what he said about this stuff they came in and confiscated his iPads, computers, cell phones, records and then if you’re someone like [Darrick] Minner, they’re doing the same to you… it’s going to reverberate… it’s going to be a matter of time before everyone starts reporting each other. It’s gonna get nasty .”
As for the UFC, this presents a legal problem unlike anything it has faced before. The continued rollout of sports betting in the United States has opened up many sponsorship opportunities for the organization, with the UFC having its own betting partner whose logo is often plastered on the octagon.
If the UFC is deemed to have a fight resolution problem, regulators could mandate that such partnerships be impossible — and that could have far-reaching implications for the UFC’s revenue and future growth. It could also hurt viewership figures if UFC betting remains banned in various territories, with a large portion of viewers considered casual fans who watch the product solely because of the bets they have made on the fights.
Additionally, if the UFC is tarred with having an issue when it comes to the integrity of its events, it could have far-reaching consequences for its brand.
What happens next?
All eyes will be on the outcome of the ongoing investigation into the circumstances of the alleged betting irregularities in Minner’s fight, as well as the watchful eye placed on the UFC by regulators in North America.
The UFC is likely to move further away from Krause, which will obviously affect their fighters as well. Krause, for his part, has yet to publicly comment on the situation, nor has his gym.
As for Krause himself, he is dealing with the collapse of what was a burgeoning gaming empire, in addition to being the chief operator of a mixed martial arts gym whose fighters are currently under the hit with a blanket ban from the UFC – and now finds himself in the unenviable position of being a player who can’t play and a coach who can’t coach.
And that might not even be close to the worst of his problems.
