Station Casinos, owned by private equity firm Colony Capital along with Ultimate Fighting Championship (UFC) owners Frank and Lorenzo Fertitta, proposed filing for prepackaged bankruptcy in a deal with lenders as a failing economy and stingy credit market have stifled Las Vegas area gambling profits in a report by Bloomberg.com.

Founded by Fertitta’s father in 1976 as nothing more than a bingo hall, Station now operates 15 off-strip casinos designed for Las Vegas locals and employs roughly 14,000 people.

In addition to the decline in gambling revenue, Las Vegas home prices fell 41 percent through last November after peaking in August 2006. In addition, unemployment in Nevada, once far below the rest of the country, was a staggering 9.1 percent in December, compared with 7.2 percent for all of the U.S.

Hopefully this decision doesn’t effect the UFC in anyway. The two companies are separately owned corporations, but a pinch in the casino market will most likely have an effect on the UFC. While the UFC is making strides to become a globalized product, the fact that Las Vegas is home to a large sum of their events can’t be overlooked. A vote is due by March 2 on the proposed Station bankruptcy plan.

Station Casinos seeking prepackaged bankruptcy – [MMAMania]

The WEC is owned by Zuffa, the company that owns the UFC. Because of this some of the 170-pound fighters from the WEC will make the transition to the UFC. Namely Welterwight champion Carlos Condit who is set to take on Martin Kampmann at Fight Night 18 in April. A fight I am very excited to see.

The addition of a flyweight division should ensure that the WEC keeps putting on great shows, with fighters from lighter weight classes. The organization announced no fighters for the new weight class, nor did WEC officials lay out any plans for creating a title for the division. However, “more information about the WEC flyweight division will be announced at a later date,” according to the release.