Shawne Merriman, the former NFL star, founded Lights Out Xtreme Fighting in 2019 with the intent of creating a unique brand within the mixed martial arts industry, aiming to distinguish itself from larger competitors like the UFC and Bellator. The company initially gained traction by integrating inventive AI technology into its operations, seeking to enhance advertising opportunities and audience engagement. It even secured a distribution rights deal with ESPN to extend its reach into Latin American markets, establishing a foundation for growth in the competitive realm of combat sports.

However, a significant shift occurred on January 8, with Lights Out Sports announcing that Applied Real Intelligence (ARI) had acquired a majority stake in the company. This move led to a restructuring within Lights Out Sports, with Dr. Zack Ellison named as the new Chairman of the Board, President, and CEO. The change in leadership and control raised questions about the future direction of the company and Merriman's role post-acquisition, igniting potential legal disputes as he grapples with the decisions made by the new management.

The ramifications of this transition are pivotal, as it may impact not only Merriman's legacy within the sport but also the strategic vision for Lights Out Xtreme Fighting. The involvement of a significant investment firm like ARI suggests a potential redirection towards more conventional business practices, which could alter the company's original innovative spirit. As litigation looms, the outcome could influence the broader landscape of how smaller MMA promotions compete against established giants in the industry.