MMA Sports Promoter Bonds
Combative sporting events have become exceedingly popular in the U.S. throughout the past few decades, especially since smaller venues have emerged to schedule events on a more local level. So it's no surprise that state agencies have established a number of regulations that require sports promoters to file surety bonds.
How do MMA promoter bonds work?
Mixed martial arts bonds work like other surety bond types. Each MMA bond that's issued functions as a legal contract that binds together three entities.
- The principal is the promoter that purchases the MMA bond as a way to guarantee his/her compliance with whatever stipulations are found in the bond's terms.
- The obligee is the government agency that requires the sports promoter to purchase an MMA bond as a way to guarantee a certain level of professional performance.
- The surety is the agency that issues the MMA bond, thus providing a financial guarantee of the sports promoter's ability to follow regulations.
If the promoter should fail to meet the expectations outlined in a mixed martial arts bond, then the obligee can make a claim on the bond to recover losses or collect a penalty. As such, the financial guarantee provided by MMA sports promoter bonds provides athletes with an additional sense of security when they decide to work with a sports promoter.
Who needs an MMA surety bond?
Almost every state enforces some sort of regulation that requires sports promoters to post a surety bond before taking part in a combative sporting event. Most states require sports promoters to post a sports promoter license surety bond before they can be licensed to legally work within the state. Some states also require additional surety bonds, such as a match permit bond that's only valid for one event or a tax bond that guarantees proper payment of taxes. Regardless of the specific bond type, SuretyBonds.com can approve 99% of those who apply for an MMA promoter bond.
How much does a MMA promoter license bond cost?
The surety bond amount required by the obligee will impact how much a promoter pays for the needed bond. Because MMA sports promoter bonds are a type of license and permit bond, the specialists at SuretyBonds.com can typically issue sports promoter bonds for just 1 to 5% of the required bond amount. SuretyBonds.com also offers premium financing options to qualifying applicants who need help paying for their MMA bond.
