Athletic Event Promoter Bonds
What you need to know about Athletic Event Promoter Bonds
What you need to know about Athletic Event Promoter Bonds
Sports promoter bonds (also known as athletic promoter bonds, or mixed martial arts promoter bonds) are legally binding agreements between three parties: athletic event promoters, the government agency responsible for regulating local athletic events, and a surety company.
The government agency is the Obligee and establishes the obligations that the sports promoter (the Principal) must follow. The surety (also called bonding company) issues the bond guaranteeing the performance of the promoter.
Sports promoter bonds are required in some states for eligibility to obtain a sports promoter license to host events for mixed martial arts (MMA), boxing, wrestling, sparring, and kickboxing. Some states that require a surety bond include California, Ohio, and New York.
When the surety company issues the bond, they provide the government agency a guarantee that the clients of a licensed sports promoter will receive payment for financial losses resulting from a violation of the statutes and regulations set forth by the promoter license.
If the promoter fails to meet the obligations set out by the government agency, the surety will pay out any damages up to the bond amount. The promoter is ultimately liable for the losses and is legally required to reimburse the surety company for any damages paid under the bond.
Sports promoter surety bond costs vary depending on the total bond amount and the premium rate. The government agency sets the required bond amount and the surety company determines your premium rate, which is the percentage of the total bond amount you pay as the premium.
Premium rates for sports promoter bonds typically cost between 1.5% and 10% of the total bond amount. Most sports promoter bonds require credit checks but the surety company ultimately decides how to underwrite the bond.
During the application process, the surety company evaluates your financial strength and industry experience. Applicants with good credit generally receive the lowest rates, however, bad credit will not prevent you from securing a sports promoter bond. EZ Surety still offers competitive rates to individuals with low credit scores or other financial issues.
Below are the lowest premiums EZ Surety has issued for sports promoter surety bonds in popular states.
You’ll know if you need a surety bond because some entity will have required you to obtain one. They must also inform you of which specific bond type you’ll need. There are thousands of bonds across the country, all of which vary by state and industry.
Visit EZSuretyBonds.com to browse hundreds of bonds by state, type, or industry.
