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MMA is still a sport influenced (to a degree) by the casual fan and their interests. Tito Ortiz is a recognized name so there's no real shame in promoting Tito for your promotions first ever PPV if you're looking for a ratings boost. At least IMO.
Nope, nothing wrong with that at all over the short term. The problem is that it in no way can correlate to long term gains. It's a cheap pop which in theory works over the short term. TNA thought "hey we've got these established faces on our product, we'll get some new fans to tune in!" and were just never able to turn that into paying customers.
Now is that going to be Bellator's problem? We'll see going forward. Tito vs Rampage is still a money fight for most people, I'd assume.