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BREAKING NEWS: Affliction Entertainment out of business

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As reported by Kevin Iole of Yahoo! Sports on Lights Out Radio, Affliction Entertainment will no longer promote mixed martial arts shows and will instead be welcomed back inside the Octagon as a UFC sponsor.

The status of those fighters contracted by Affliction is not yet known, Iole said.

"It looks like Affliction is totally out of business right now," Iole said. "They're going to put out a statement later today announcing that they are going to be a sponsor of the UFC. I don't know where this puts the fighters but Affliction as a promotion is done."

Iole said said Affliction had approached the UFC about merging the week before UFC 100.

This came after Iole reported a potential merger of sorts between Affliction and Strikeforce, which was brewing early in the week, even prior to Barnett's drug test failure, Iole said.

"Somehow that fell apart," Iole said. "I think it was because Scott Coker, the CEO of Strikeforce, was out of the country and the paperwork wasn't signed," Iole said.

"Right now, I'm not exactly sure how that fell apart, but at the last minute it crumbled, so it opened the door for the UFC."

As for the fighters, Iole said he expects Fedor Emelianenko's contract to be a "special case" like it was when the UFC bought PRIDE Fighting Championships in 2007.

"My guess would be it would be the same thing this time knowing how his management operates," Iole said. "But until Tom Atencio and Dana White come forward with some information and let us know, that's going to be speculation."

Iole cited lack of ticket sales for the Aug. 1 event along with poor pay-per-view numbers from the first two events as reasons for Affliction's demise.

Iole and White will be on ESPN 1100's radiothon benefitting The Caring Place of Nevada at 9 p.m. ET/6 p.m. PT.

For the full interview with Iole plus additional analysis from Matt Bishop and Forrest Lynn on Lights Out Radio, click here.

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