For me its completly different things Babalu and Emerson. If Emerson was reported beating up people now, I think that Dana would kick him out asap. But this is things that have happend in the past and if he sais he has change and he shows no signs in going back to that way of life i dont see way you would kick him out.
I have no facts to this but Im sure that MMA attracts alot of "troubled" kids just the same as boxing does, and if MMA is some way for them out of that i think that you should be allowed to compete even if you have commited crimes in the past. But as with Babalu he was in the UFC and commited a crime and therefor he was kicked out.
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