The UFC hoped to contest the event at Madison Square Garden in New York City, in what would be the first event in the state of New York since the state's MMA ban. However, on January 25, it was announced that a preliminary injunction allowing the promotion to hold the event was denied by a federal judge. According to an order issued by New York district court judge Kimba M. Wood, the federal court must first rule on Zuffa's appeal on New York's MMA ban and won't interfere with the enforcement of state law. On February 6, the UFC confirmed the event would take place in Las Vegas, Nevada.
On March 29, Jones was arrested in Albuquerque, New Mexico on a charge of violating his probation related to his hit-and-run incident in 2015. The arrest took place five days after Jones was cited on multiple traffic charges, including drag racing, exhibition driving, weaving, failing to properly display his license plate and modifying his exhaust pipe. He agreed to a plea deal and was released on March 31. In a statement, the UFC announced it was "disappointed" with Jones, but the bout would continue as planned. However, on April 1, it was announced that Cormier injured his foot and was out of the planned fight. He was replaced by Ovince Saint Preux in what became an interim title fight. Anthony Johnson was the original planned replacement, but due to a recent oral procedure, he wasn't able to accept the fight.
In January 2016, B.J. Penn announced his intentions to return to active competition in the featherweight division after an 18-month "retirement" and was expected to compete at this event. However, Penn's return was delayed after an investigation into recent criminal allegations made against him was launched. After he was exonerated, the UFC announced that he would face Dennis Siver at UFC 199.
The following fighters were awarded $50,000 bonuses:
Fight of the Night: Danny Roberts vs. Dominique Steele
Performance of the Night:Demetrious Johnson and Yair Rodríguez
The following is the reported payout to the fighters as reported to the Nevada State Athletic Commission. It does not include sponsor money and also does not include the UFC's traditional "fight night" bonuses.
Jon Jones: $500,000 (no win bonus) def. Ovince Saint Preux: $55,000