Under current Kentucky law, combative sports promoters are required to submit a $5,000 bond to the Boxing and Wrestling Commission. However, recently passed House Bill 366 introduces some changes to the licensing process—including an increase to the bond amount from $5,000 to $10,000. The new law is set to take effect on June 28, 2017 and applies to every Kentucky combative sports promoter included in the legislation. Under the new law, promoters for muay thai shows and exhibitions will also be required to apply for a license with the Commission.
Who is considered a combative sports promoter in Kentucky?
The Kentucky Boxing and Wrestling Commission is responsible for licensing promoters of boxing, kickboxing, wrestling, professional mixed martial arts (MMA), amateur mixed martial arts or elimination events, and muay thai. Any applicant who promotes these events is considered a combative sports promoter and must therefore be bonded for $10,000 when the new legislation goes into effect. The bond is issued to ensure the payment of all taxes, fines, fees imposed by the commission, money owed to contestants, and money owed to contracted event service providers. Should the promoter fail to provide payment, a claim may be made for up to the full amount of the bond. Finally, if the bond is canceled by the surety or the promoter does not renew before their current bond expires, the Commission will immediately terminate the promoter’s license.
How do I become a Kentucky combative sports promoter?
Each Kentucky sports promoter is required to submit a completed application including information such as the type of promotions, the promoter’s name, the promoter’s address, etc. In addition to submitting the completed application and surety bond for consideration, the following requirements must also be met by applicants trying to become licensed combative sports promoters:
- Applicant is at least 18 years of age
- Provide a copy of the applicant driver’s license, state issued ID, or passport
- Resident of Kentucky or registered with the Secretary of State to do business in Kentucky
- Pay the $300 application fee by check or money order
All required materials may be mailed to the Boxing and Wrestling Commission at 656 Chamberlin Avenue, Suite B, Frankfort, Kentucky 40601, though licensing renewals may be completed online. Further questions regarding the licensing process for promoters should be directed to the Commission.
How much does a combative sports promoter bond cost?
Due to the inherent risk associated with bonds guaranteeing payment to an obligee, Kentucky combative sports promoter bonds are subject to strict underwriting consideration, meaning that underwriters will need to review the applicant’s credit prior to providing a quote. An applicant with great credit may be approved for just 1% of the total bond amount; exemplary credit may even get the applicant approved at .5%!
Approvals are still granted to applicants with slightly lower credit, however their rates typically range from 3-10% of the bond amount. When an underwriter is wary of approving an application based on credit alone, they will often take additional factors into consideration. For example, an applicant with mediocre credit may qualify for a slightly lower rate if they can show that they have relevant business experience with regards to combative sports promotion.
The good news, bad news scenario with these bonds is that they must be renewed every 12 months. The good news is that it gives promoters an opportunity to improve their credit and qualify for a lower rate each year when their bond is renewed. On the other hand, a promoter whose credit worsens during the previous year may find that their quote increases—sometimes significantly.
Since each application must be reviewed on an individual basis, it is impossible to provide a quote that applies to every applicant. However, the experts at SuretyBonds.com can typically issue quotes same-day. Save time and money by giving us a call at 1 (800) 308-4358 to get a quote on your Kentucky combative sports promoter bond today!