Australian UFC Gym chain's debt surges to $15 million as legal tussle continues

The UFC, and mixed martial arts as a whole, have expanded across the globe in numerous ways. That expansion has led to MMA becoming enough of a well-known sport that gyms have sprung up in countries that wouldn't otherwise have such facilities for the sport.

One such gym is UFC Gym in Australia. Unfortunately, it has been embroiled in legal trouble that has led to financial disaster. As one of the most popular gym chains in Australia, its master franchise agreement was held by three different companies.

The companies were Ultimate Franchising Group Pty Ltd, UFC Gym Prospect Pty Ltd and Ultimate Franchising Group Properties Pty Ltd. After being found guilty of misleading conduct, Ultimate Franchising Group Pty Ltd and Ultimate Franchising Group Properties Pty Ltd were ordered to pay over $5 million to three franchisees.

This took place back in late May and led to the two companies going into voluntary administration by having their directors appoint licensed insolvency practitioners to serve as management's new administrators. These administrators are Rajiv Goyal and Christopher Johnson from Wexted Advisors, an insolvency firm.

Now, in late June, it's been revealed that the two men lodged a report (acquired by news.com.au) with the Australian Securities & Investments Commission, revealing that Ultimate Franchising Group Pty Ltd owes $15,645,000 to unsecured creditors. In short, the Australian gym's debt has surged to $15,645,000.

While the gym hopes to stabilize its financial situation, it seems that dark times are ahead for a chain that once held over 10 gyms across Australia.

---

When will the UFC return to Australia?

The promotion last held an event on Australian soil when it hosted UFC 284 in Perth. It was Alexander Volkanovski's chance to dethrone the seemingly unstoppable Islam Makhachev in front of Australian fans and solidify his No.1 pound-for-pound status by enthroning himself as the promotion's latest two-division champion.

However, things did not go his way, despite many believing that 'The Great' had done enough to earn the nod from the judges in his favor. That card took place back in February. So when is the promotion scheduled to return to Australia? Australian fans will be delighted to know that it will be sooner rather than later.

UFC 293, which is scheduled to take place on September 10, will happen in Sydney, the country's largest city. While there's very little news on the headliner for the event, fans will wait with bated breath.