Unfortunately I have to call this one.
MLG is heavily invested in Gamebattles. Virgin Gaming is a direct competitor with Gamebattles.
Now, I'll speculate and make assumptions. Virgin Gaming, not having any live tournament experience, would opt to handle the online portion, holding online qualifiers. They would then ask MLG to handle the live event, because that is MLG's expertise.
Sundance, being so heavily invested in Gamebattles, would have to say no, because as a business he would be agreeing to allow his competitor to steal his sales by potential Halo Gamebattles players to switching over to the Virgin Gaming ladders.
It's as close to a win/win for Virgin Gaming as it can get.
Either MLG says no to this deal, and Sundance once again looks like the "Halo villian" and Virgin Gaming looks like the hero, or Sundance says yes to this deal and loses a huge portion of MLG's Gamebattles sales and participation and loses even more money by being the one responsible for the live event.
Now, is this exactly how it's going to be? No, that's just my speculation on the matter. Who knows, maybe Virgin Gaming would recoup some of the costs for MLG?
However, Virgin Gaming is definitely backing MLG into a corner with this one.