I swear on everything holy that I had this exact same idea of using figures in a wrestling game months ago. Granted, my idea involved virtual reality/augmented reality and NOT a phone game, but I guess it's good that it exists!
AEW And WBD Sports Announce Mobile Game AEW: Figure Fighters (via Fightful)
https://www.fightful.com/wrestling/aew-and-wbd-announce-mobile-game-aew-figure-fighters