Overview of MMA Bond Requirements
In most states, to obtain a license to promote and hold an MMA or, alternatively, a boxing or wrestling event, you will need to post a surety bond in a certain amount.
The bond is typically posted with the state agency that regulates these activities. The amount for this bond varies from state to state with the lowest being $5,000 and the highest $50,000.
Among others, the following states currently require an MMA bond: Arizona, California, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Michigan, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Texas.
Why do MMA / boxing promoters need a bond?
This type of bond guarantees your compliance with state laws about how to conduct MMA or boxing events.
States may include various conditions that you need to comply with within their regulations. This may include your obligations toward contestants, physicians and other personnel, the payment of taxes on tickets, making sure a venue is secure and well ventilated, etc.
If you violate your state's laws and cause losses to a contestant or other person, a claim can be filed against your bond. The purpose of the claim is to make available compensation to harmed parties.
When a claim is filed, the surety which has issued a bond for you will investigate the case to determine whether and what amount of compensation to extend. Depending on the nature of your violation and the amount of losses, compensation can be as much as the full amount of the bond.
See our ‘What is a surety bond' guide to find out more about how bonds work and why you are required to get bonded!
See the next sections to learn more about how the bond cost is formed, the bond claims process, and how to apply for an MMA bond!
If you have any questions about getting an MMA bond in your state, call us at 866.450.3412 anytime!
What Is The Cost of Getting an MMA Bond?
Your surety bond premium is determined by the surety when it reviews your application. The cost is equal to a fraction of the full amount of your bond.
Your surety considers several factors when setting your bond rate.
Factors that determine your bond premium
The most important cost factor in your application is your personal credit score.
The higher your credit score, the lower your bond rate will be. This is because sureties consider credit score a reliable measure of the likelihood of a claim being filed against a bond.
For that reason, applicants with very good credit scores are typically offered a rate between .75% and 1.5% of the total amount of their bond. Applicants with good to moderate scores fall within the next category of bond rates which range between 1.5% and 5%. Finally, those individuals who have a low credit score are usually bonded at a rate upwards of 5% and up to 15%.
To get a fuller picture of your financial condition, sureties will likely also want to review some of the following:
- Personal and business financial statements
- Fixed and liquid assets
- Work experience and record
Want to get an estimate of the cost of your bond? Try our bond calculator!
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Get a free exact quote Get another estimateWhat Can Cause a Bond Claim?
Bond claims are the way in which anyone who is harmed by a bonded party can take action to receive compensation.
If you violate your obligations under state law as an MMA / boxing event promoter, and cause losses or damages to anyone who is protected by the bond agreement, a claim can be filed. Your surety must then determine whether there is good cause for the claim and, if there is, what the appropriate amount of compensation should be.
Once claimants are compensated by the surety, you must, in turn, reimburse the surety. This is a standard part of the claims procedure. It is always the bonded party that is liable for claims against their bond, rather than the surety.
Because of both the reputational and financial difficulties that can arise due to a claim, the safest course of action is to always make sure you are compliant with state regulations. In that way, you only need to take care of your initial bond premium payment, and nothing else!
How Can I Get a Bond?
Start by clicking on the banner below and completing ou bond form. We'll then send you a free quote on your bond, as well as more information about finishing the bonding process.
If you want to know more about the specific bonding requirements for MMA or boxing promoters in your state, call us at 866.450.3412 anytime!
