Overview of Virginia Sports Promoter Bond Requirements
To get a license to conduct a boxing, martial arts, or wrestling event in Virginia as a promoter, you will require a so-called sports promoter bond.
The amount of this bond is determined on a case-by-case basis. It must be equal to the sum of the gate fee for an event, if all seats were taken, and the total amount due to all boxers and martial artists for their appearance. However, the maximum amount cannot exceed $100,000.
Why do I need this bond?
This bond serves as a guarantee that you will comply with all your obligations as they are defined in the Code of Virginia. These include the payment of fees, and the completion of contracts made with contestants in sports events.
If you should violate the provisions of the Code and cause losses to contestants or fail to pay fees or penalties, a claim can be filed against your bond.
When a claim is filed, your surety must investigate the matter and determine whether and what amount of compensation to extend to claimants. Depending on the losses, the amount of compensation may even be as high as the full penal sum of the bond.
To learn more about how bonds work, and why they are a frequent business licensing requirements, see our ‘What is a surety bond' guide!
In the following sections you can learn more about how much your bond might cost, what can cause a bond claim, and how you can apply.
If you have any bond-related questions, call us at 866.450.3412 anytime!
What's The Cost of The Virginia Sports Promoter Bond?
The cost of your bond is equal a percentage of its total amount.
That percentage is determined by your surety on the basis of several financial factors.
Factors that determine your bond cost
Personal credit score is the primary factor that sureties consider when determining an applicant's bond rate.
Applicants with high credit of 700 FICO or more, and those with slightly lower scores, are usually bonded at a rate between .75% and 5% of the total bond amount.
Applicants who currently have a low credit score can expect to be offered a rate between 5% and as high as 15%.
To more accurately determine your bond rate, your surety may also request to view your:
- Personal and business financial statements
- Fixed and liquid assets
- Work experience and record
Want to get an estimate of the cost of your bond, based on your credit score? Try our surety bond calculator below!
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Get a free exact quote Get another estimateWhat Can Cause a Claim Against Your Bond?
Title 54.1, Chapter 8.1, Code of Virginia states that this bond guarantees that promoters will pay any fees and penalties they owe to the state as a result of their work. The bond also guarantees that any contracts with contestants will also be fulfilled by the promoter.
If a promoter makes a misstatement, misrepresentation, engages in fraud or deceit, and causes losses to any of the above parties, these may file a claim against the promoter's bond.
The surety that backs the bond must then investigate the claim and establish its validity. If the promoter has violated the conditions of the bond, the surety will extend compensation to claimants.
In return, the promoter must then reimburse the surety for any compensation it extends. It is always the bonded party that carries liability in the case of a bond claim, and never the surety.
To avoid giving rise to a claim, promoters must comply with all their obligations toward the DPOR and contestants.
How to Get Your Bond
To apply for your bond, click on the banner below and complete the short form. We will then provide you with a free and exact quote, along with further details about completing the bonding process.
If you need to consult with one of our surety professionals, call us at 866.450.3412 anytime!
Further Reading
