MMA For NY Step 2: Shaping the Legislation
June 7, 2009
MMAPayout has elaborated on some of the ingredients in the New York MMA bill that could be impediments to bringing mma to the state. MMA legislation is fine and well, but a law fraught with taxes and levies that hamper MMA promoters can do just as much damage to putting on MMA in NY as not having a law at all.
The next step for MMA advocates will be making the case to bring the taxes and levies associated with the MMA bill in line with those in other states. The 8.5% current rate is rather high, roughly double what would be considered palatable by Zuffa’s of the world. Most of what I have seen has been in the 3 to 5% range. The reasoning of the high tax isn’t too hard to see, the main architect of inserting the high tax was Bob Reilly (pushing the clause on Assmn Englebright, which he admits to here.)
The high tax needs to be lowered for that reason alone, but it also need to be lowered to factor in local municipalities instituting their own tax on MMA cards via things like entertainment taxes. The UFC faced a tax like this with their card they put on form Minneapolis for UFC 87. The UFC will almost certainly be faced with an additional tax charge if they look to put on a card in a place like New York City. Having the state tax artificially inflated and then having a local tax may put the kibosh on most MMA cards. This would be a case of MMA being legal but for the most part not economically viable for the vast majority.
UFC VP Marc Ratner noted that here are several more hurdles to face before the MMA and the UFC become a reality for New York. “Yesterday was the first step of many that need to happen,” Ratner commented to MMAPayout.com. “We’ll be testifying more next week.” Ratner and Dana White will be in New York to speak to these issues later this week and the next, with White specifically stating that he will check in on the process after the UFC Germany card. During these times they will argue their case for a more equitable tax situation of MMA, both at the UFC level as well the local level.
We noted earlier the contributions of outside groups like Unite Here to influence legislation, and the same is true for those in favor of MMA:
With millions of dollars at stake, Zuffa, LLC, which owns and operates UFC, is shelling out $7,500 monthly for a lobbying firm to do its bidding in Albany to make the sport legal in New York.
The firm of Brown, McMahon & Weinraub hit the pavement running, engaging in retail lobbying over the past year. It spoke with every member on the tourism committee and made donations to individual legislators.
As we said before, there isn’t a quid pro quo likely going on here, but the UFC should have advocates for their position of lowering the tax implications involved with the MMA bill. The UFC and its surrogates will look to shape the legislation, making it a much more functional bill before it makes its way to Gov Patterson of New York.
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