The lighting on this photo is actually fairly convincing. If you look closely at the light source in Machida's hand, it is hitting the border of the photograph. The reason the lighting may appear uneven is due to the fact that the photo is lighter than Machida's hand and given the low dynamic range of the phone can sensor that was used, it will blow out the detail in lighter colors.
In regard to the photograph itself (Of Rashad), it does appear to be more vivid than Machida which leads me to believe that it was added as a layer over what was most likely a legitimate photograph.
I am saying that Machida holding a photo is real, however, the photo of Rashad is not.