Jonathan Stempel

(Reuters) – World Wrestling (NYSE) Entertainment Inc was sued Tuesday by a smaller competitor who accused Entertainment Inc of violating Federal Antitrust Law by monopolizing professional wrestling.

MLW Media LLC accused WWE Chief Executive Vince McMahon and threatened content partners to do business with MLW in order to protect its 85% market share for U.S. professional wrestling broadcasting rights.

According to the Mamaroneck, New York-based plaintiff, WWE interference in 2021 led Vice TV to stop talks to air new MLW material. This resulted in a 40% decline in ticket sales following Fox Corp’s Tubi streaming platform abandoning a licensing deal that was due to be made public.

MLW accused Stamford’s, Connecticut-based WWE, of inducing MLW wrestling stars to breach exclusive contracts, and airing MLW footage unpermitted to counter a 5-year drop in popularity for its programs.

In a complaint to San Francisco Federal Court, MLW stated that WWE’s “patterns of predatory or exclusionary conduct” reduced competition and irreparably damaged consumers. It also deprives them of content and keeps prices high.

WWE stated in an emailed statement that they believed MLW had made false claims and would vigorously defend themselves. McMahon wasn’t named as a defendant.

MLW reported that U.S. rights for WWE Raw and WWE Smackdown were worth $470m, and Dynamite rights are worth $44 mil.

Unspecified triple damages and additional damages are sought by the lawsuit.

Closed Tuesday at $51.54, WWE shares were up 38c. The shares have increased 9% over the past year while the Russell 1000 (which includes WWE) is up 21%.

This case concerns MLW Media LLC v World Wrestling Entertainment Inc, U.S. District Court Northern District of California. 22-00179.