Over at Fight Opinion, Zach Arnold has the best explanation of why the K-1 show may fold, why this scandal is a typical by-product of Japanese businesses related to combat athletics operating in America, and what this may mean for not only K-1, but the entire Japanese MMA scene. Notable quote(s):
The storyline that you should pay close attention is the Japanese TV situation between Tokyo Broadcasting System and K-1. TBS is paying K-1 a lot of money for the broadcasting rights in Japan to air the show on free TV, which is supported by advertisers and sponsorships. Without the Japanese TV money, the K-1 Dynamite show would likely not be happening. If the California show is canceled, it will cause major headaches for K-1 in regards to their relationship with Tokyo Broadcasting System. That could cause damage in regards to promoting their World MAX and normal K-1 kickboxing events on TBS.
Without major Japanese free-to-air television support, K-1 would be crippled.