David Sloan is the younger brother of Kurt and Eric Sloan. Kurt and Eric are killed by Tong Po sometime between the ending of the first movie and the beginning of the second. David does not fight anymore, instead is an instructor as his brother's gym, which is run down due to a lack of funds.
Justin the founder the UKA wants David to fight for the UKA and David says that he will not fight for him. Brian Wagner a student of David, talks to Justin, and then fights for the UKA.
In order to get some money David decides to fight and fights Neil Vargas, the UKA Heavyweight World Champion. David beats Niel, and says that the UKA is corrupt, and Justin has Niel and some other people burn down David's gym, which kills a kid in the process and David get shot in the leg by Niel.