Overview of Washington Sports Promoter Bond Requirements
Applicants for a sports promoter license in Washington state, and in particular a boxing, martial arts, and wrestling promoter license, must obtain a surety bond when getting licensed.
The sports promoter bond they require must be in an amount of at least $10,000. Its exact amount is to be determined by the Department of Licensing when they apply. This bond is sometimes also called an MMA bond.
Why do I need a bond?
Sports promoters require this bond to guarantee their compliance with the provisions of the RCW, and the faithful performance of all their obligations.
If a sports promoter violates their obligations, and causes losses to another party that they work with, the latter may file a claim to secure compensation.
The surety that backs the bond must then extend compensation with its exact amount being determined by the losses suffered. Depending on the claim, compensation may even be as high as the full penal sum of the bond.
Find out more about surety bonds, why you need one, and how they work from our ‘What is a surety bond' guide!
See the sections below for more information about the cost of this bond, what a bond claim is, and how to apply!
Call us at 866.450.3412 anytime, if you have any questions about getting bonded as a sports promoter in Washington!
What's The Cost of The Washington Sports Promoter Bond?
The cost of your bond is equal to a part of its full amount.
When you apply to get bonded, the surety will offer you a rate which is determined by several financial factors.
Factors that influence your bond premium
Your credit score is the most important factor that determines your bond cost. It is considered important by sureties because it serves as an indicator of an applicant's financial stability, and the likelihood of a claim being filed against their bond.
Applicants with high and moderate credit scores are typically bonded at a rate between .75% and 5% of the total amount of their bond.
Those with low or “bad" scores are usually offered a rate upward of 5% and as high as 15%.
Apart from your credit score, the surety may also want to review your:
- Personal and business financial statements
- Fixed and liquid assets
- Work experience and record
To get an estimate of the cost of your bond, based on your credit score, see the table below!
| Washington Sports Promoter / MMA Bond Cost Based on Credit Score | |||||
|---|---|---|---|---|---|
|
License type |
Bond Amount |
Credit Score | |||
| Above 700 | 650-699 | 600-649 | Below 599 | ||
| Washington Sports Promoter | $10,000 (minimum amount) | $100-$150 | $100-$250 | $250-$500 | $500-$750 |
What Can Cause a Bond Claim?
Chapter 67.08 of the RCW states that sports promoters in the state must post a bond in an amount determined by the Department of Licensing but at least $10,000.
The bond is intended to serve as a guarantee that licensed promoters will comply with the provisions of that chapter. It also guarantees that they will pay any taxes, officials, or contracts they have, and observe all rules of the department.
If a sports promoter violates these provisions by, for example, not paying taxes - a claim can be filed against their bond due to the failure to meet that obligation. The claim's purpose is to secure compensation for any loss that has occurred.
The surety that has issued the bond must then investigate the claim and determine the appropriate amount of compensation that it must extend. When claimants are compensated, this completes the claims process for them.
For the bonded promoter, though, there is the remaining condition to repay the surety for any compensation it has issued. Under a bond agreement, the surety never assumes liability for claims brought against it.
How to Get Bonded
Want to get started? Click on the banner below and complete the application form. We will get in touch with you soon to provide you with a free quote on your bond.
If you have any further questions about this bond or the bonding process, call us at 866.450.3412 anytime!
Further Reading
