This is combat sports, real league systems don't exist in combat sports, what the hell are these clowns talking about. UFC aren't doing anything wrong, its the exact same in professional boxing, kickboxing, muay thai etc etc. You can't do league systems, this is not a team LMAO.
He's just pointing out that there are economic protections in place for boxers that give them performance based negotiating power.
i.e. If a boxer makes his way up the rankings to number 1 contender, then he is (theoretically... because, yes, it gets danced around) entitled to a title shot. The promoters have to negotiate with him and come to a deal. That gives him some power to make demands. He's not all powerful, because if the price he demands is above the value that promoters believe will be profitable, they aren't going to make that deal... but then everyone sits on the shelf for a bit, and no one makes money, not the champ, not the challenger, not the promoter, until they can come up with some sort of compromise. (At least that's how it's supposed to work.)
If a UFC fighter makes his way up the rankings to number 1 contender, the UFC never has to deal with him. Ever. They can offer fights to other guys instead. That changes the negotiating dynamic entirely. The promoter can keep on making money while the contender becomes more and more desperate, going progressively more and more broke, and more and more willing to fight for less and less. The promoter can also offer him fights with lower ranked fighters, that he needs to take at some point to feed his family, and keep doing that until he loses and drops in ranking. They can also shuffle the media voters who decide the rankings to avoid the PR backlash of having a guy sit as number one contender indefinitely with no title fight in sight.
Boxing has a million problems, but they do have the Ali Act which does protect fighters from these sorts of economic strong-arm tactics.
That's what the hell these guys are talking about, and it's a legitimate concern, which is why the UFC dances around the issue by saying things like "Well... it's not really a world title so much as an award given to the guy who was the best fighter on that night."