is right, was a monty python reference to arguing / insult contests and the like. (fight club).
I find now that young people just don't "get" Monty Python refs - argh, my age is showing.
Google is your friend if you want to see the whole skit. And if you think it's silly - you'd be right. Silly is pretty much the point.
And while we're posting about fight club... look up the Black Knight skit from the Holy Grail too. Seems appropriate somehow.