The Japan Boxing Commission, which oversees professional bouts in the country, will be dissolved because of financial difficulties, a source familiar with the matter said Thursday.
The move is expected to be announced at a board meeting later in the day, with discussions under way on reforming the organization under a different corporate structure.
The dissolution is not expected to impact the staging of fights that have already been scheduled.
The suspension of boxing matches and related activities amid the coronavirus pandemic dealt a significant blow to the JBC, which was some ¥25 million ($205,000) in the red by the end of 2020.
The commission's finances were further impacted by a court ruling against it in a lawsuit brought by former three-weight world champion Koki Kameda and his two younger brothers, Daiki and Tomoki.
The Tokyo High Court in February ordered the JBC to pay the three Kameda brothers a total of ¥100 million yen in damages for unlawfully suspending the licenses of the top officials of their boxing gym, which prevented them from fighting and caused a loss of earnings.
"We will aim to wrap things up and get started under a new structure," a person involved with the JBC said. "This won't affect boxers."
Established in 1952, the JBC's responsibilities also include assigning referees to matches.