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Made perfect sense for Fedor/M1 to want to co promote. Made zero sense for the UFC to.
Not zero sense. A PPV featuring Fedor and Brock would have done gangbusters then. The UFC ended up doing a cross promotion anyways, some years later when Conor fought Floyd.
Brock was probably the only guy who approached Conor level sales in his UFC PPVs, imagine what him vs Fedor would have done?