Rival Sues WWE, Accuses Company Of Illegal Wrestling Monopoly

STAMFORD, CT — World Wrestling Entertainment Inc. was sued this week by Major League Wrestling, a smaller rival, who claims that WWE has undermined competition and monopolized the professional wrestling market by interfering with MLW's contracts and business prospects.

The lawsuit was filed Tuesday in U.S. District Court, Northern District of California, by MLW Media LLC, of Mamaroneck, N.Y.

In the lawsuit, MLW accused WWE of trying to maintain an 85 percent dominance over the U.S. wrestling market through "unfair and anticompetitive business practices, including poaching talent, misappropriating confidential information, interfering with competitors’ contracts and cutting off competitors’ access to their viewing audiences."

MLW said WWE aired MLW footage without consent, induced MLW wrestlers under exclusive contracts to terminate those deals, and encouraged MLW wrestlers to breach their contracts with MLW "by disclosing MLW’s confidential and proprietary business information", in response to a five-year decline in the popularity of WWE programming, the lawsuit said.

WWE, which is headquartered in Stamford, denied the allegations on Thursday.

"WWE believes these claims have no merit and intends to vigorously defend itself against them," WWE said in a statement to Patch.

MLW also accused WWE and the company's CEO Vince McMahon of interfering with and ending a broadcast agreement that was in place between MLW and Vice TV.

"WWE’s interference with MLW’s business continued in mid-2021 after MLW entered into a lucrative agreement with Tubi — a California-based streaming service owned by major media company Fox Corporation," the lawsuit said. "The agreement would have had a profound impact on MLW’s business by giving it exposure to Fox’s broad television and NFL football audience, further positioning MLW for future media deals."

MLW said WWE contacted Tubi "and threatened that if Tubi did not terminate the MLW contract, WWE would cease doing business with Fox and would pull important WWE programs from Fox platforms." Shortly after, MLW said the contract was terminated.

According to the lawsuit, MLW said the contract termination "reversed the momentum the company had been generating with fans" and cut off MLW's access to a broader fan base, which they said led to event cancellations, delays, and a 40 percent drop in ticket sales.

Beginning in early 2020, the lawsuit states, WWE sought to poach MLW’s fighters who were under exclusive contracts. MLW alleges that WWE "also sought to prevent wrestlers from working with MLW by refusing to hire wrestlers who had worked for MLW. As a result of WWE’s efforts, one of MLW’s wrestlers demanded to be released early from his contract so he could join WWE," the lawsuit said.

"As a result of WWE’s wanton misconduct, MLW has suffered and will suffer monetary damages and irreparable harm, resulting from, among other things, continued loss of brand recognition and valuable talent, posing a serious risk that its business will be destroyed," the lawsuit said.

MLW is seeking unspecified "compensatory, treble and exemplary damages."