Local Taxes Hit UFC Show

August 13, 2008

Zach Arnold had a nice find from the local coverage post -UFC 87:

A little birdie says Ultimate Fighting Championship officials weren’t pleased about the 10 percent tax on their show that drew 15,082 to Target Center on Saturday, and if they return to the Twin Cities next year, the Xcel Energy Center could be the site.

MMAPayout reader Chris Daniels is another local that questioned the Minneapolis vs St Paul decision:

As a resident of Minneapolis I was at UFC 87 it was awesome, but the local talk leading up to the event was surprise that it was at Target Center and not the Xcel Energy Center. While Target Center does have a better location for the hype around the event (The hotel was across the street where the fighters were and the Hardrock cafe was across the street) The Xcel energy center is bigger, newer, and a much nicer venue. When you live in the Minneapolis / Saint Paul area you look at it as one big metro area so UFC would not lose ticket sales by moving the event to Saint Paul.

Looks like the Minneapolis folks are putting roadblocks in the way of future cards with their taxing structure for out of town events. The Xcel Center is located in St Paul and looks to have a much more business friendly attitude and tax code.

Another item not mentioned much when discussing location for the PPV’s is the fact that most states place a tax on PPV revenues when a live event that yields a PPV broadcast originates from their state. I don’t have any information whether Minnesota has this as part of its’ regulations, but all these items can take a bite out of profits

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