What is a promoter bond?
Boxing or MMA promoter bonds hold combative sports promoters accountable by ensuring they meet their contractual obligations. Promoter bonds are often required as part of the state licensing process for promoters of different sports.
The bond guarantees the promoter adheres to state and industry laws and regulations, including paying applicable taxes and license and permit fees. The bond offers protection for venue owners, athletes, and the state.
Depending on the sport and industry, this bond may go by different names:
- Professional club bond
- Wrestling promoter bond
- Boxing promoter bond
- Mixed martial arts (MMA) bond
- Combative sports bond
- Kickboxing promoter bond
Get Your Boxing, MMA, or Wrestling Promoter Bond:
- Boxing or MMA promoter bonds hold combative sports promoters accountable by ensuring they meet their contractual obligations.
- If a promoter fails to meet the bond’s terms, the harmed party may file a claim against the bond to receive compensation.
- Promoter bond requirements may range from $10,000 to $25,000, depending on the state.
How do promoter bonds work?
A promoter bond is a three-party agreement involving:
- A principal: The sports promoter who buys the bond
- An obligee: The government agency (State Athletic Commissions) that requires the bond to guarantee professionalism and ethical behavior
- A surety: The entity that underwrites and issues the bond
If the promoter fails to meet the bond’s terms, the harmed party may file a claim to receive compensation. For example, if a promoter doesn’t pay a venue as promised, the owner can claim their losses.
The surety company may investigate to determine if the claim is valid. If it is, the surety must pay the claimant for their losses – up to the total bond amount. The principal (promoter) must then repay the surety in full, plus applicable fees and interest.
How much does a promoter bond cost?
Each state determines the required bond amount for combative sports promoters. Amounts often range from $10,000 to $25,000. With an excellent credit score, you could pay a little as 1% of the required bond amount in your state. So if you need a $20,000 promoter bond, you might pay $200 for a year of coverage.
Yes, you likely will need a separate surety bond for every state you want to be licensed to work in. Check specific state requirements for current information.
How to Get a Promoter Bond in Your State
We can help you find the proper license and permit bond for your sports promoter business. ZipBonds offers the fastest and most secure option for getting bonded. Our all-digital platform is intuitive and straightforward. Apply online or call us at 888.435.4191 to speak with an agent directly.
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.