You can't believe what Dana White said about EA's refusal to make a game, he's the King of Bullshit and the Sultan of Spin.
I doubt they really said the MMA isn't a sport, I think what is closer to the truth is that they just didn't want to make a UFC game and deal with all his sharky business tactics. They may have said that they didn't think the UFC was a proper sport, which is no surprise as it's been resembling the WWE more and more.
EA probably wanted to make a MMA game, just not a UFC game and if they had made a deal with the UFC then the type of game they could have made would have been extremely limited.
EA probably knows that there's a whole lot more to the sport of MMA than just the UFC, and like their Fight Night games, wanted to make a MMA game with fighters and rules from more than one organisation.
For example, in their game they'll want to feature fighters who are heavier than 265lbs and lighter than 145lb,
they'll want to have matches take place in a ring rather then a cage,
they'll want to feature legends of the sport and well know international fighters from other organisations like Affliction, Strikforce, Dream, Sengoku, K1 etc. rather than be limited by the roster of relative unknowns that the UFC has,
they'll probably want to make a game with an ever popular 'Tournament mode',
they might even want to make a game which features kicks and knees to a downed opponent,
and like Fight Night features Ali as it's 'poster boy', they probably would want their MMA game to feature the best MMA fighter in the world, Fedor, who the UFC tries to deny exists (probably because he wouldn't sign with them and sign away all rights to his likeness for life).
Dana White is notorious for his shady business practices, the strict contracts he forces people to sign and the fascistic way he tries to control people, so it's no wonder EA (who are no strangers to questionable business tactics themselves) didn't want to get into bed with him.
I think it's really bad for the sport that he's decreed than any fighters who appear in EA's MMA game won't ever be allowed to compete in the UFC, it's like he's trying to monopolise the sport and control fighters who don't even work for him.
It's like he's forcing hard working fighters not to make some extra money to help support their families, on the hope that they'll be signed up with the UFC, which may not even happen.
Plus if they did reject the chance to be in EA's game and did sign up with the UFC, Dana White would still drop them after 1 loss yet, control their image rights for life, preventing them from making any sponsorship money in the future.
When THQ's UFC game was being developed, there were a few fighters and independent trainers and gyms, who had a falling out with Dana White because they refused to sign away their perpetual image rights for free, which he demanded for the game, so don't think Dana White is better than EA, in fact he's a lot worse.