Sarah Evans of the Legislative Gazette reports some further details on the inclusion of an MMA bill in April’s New York state budget proposal, including a potential tax on broadcasting rights.
The budget plan proposes an 8.5 percent tax on event admissions, the same as boxing and wrestling matches, with no cap, as well as a 3 percent tax on receipts for broadcasting rights, with a cap of $50,000. The broadcasting tax would provide the most revenue for the state.
The bill that is currently in the governor’s proposal differs from last year’s legislative bill. In last year’s legislative bill, if someone with a license violated state rules and regulations, the violator would have to pay $5,000. In the governor’s bill, the same rules in boxing apply for mixed martial arts. A first time offense would cost $10,000 and those after would cost $25,000. Those fees would get paid to the state treasury and then credited to the General Fund.
Each year, those involved with mixed martial arts would have to pay license fees to the state Athletic Commission. Promoters have to pay from $500 to $3,500 depending on the seating capacity of the venue. Referees and judges have to pay $100, participants, managers and trainers, $50; and chief seconds, who act as corner men to the fighters between rounds, $40.
Payout Perspective:
The broadcast tax would cap at $50,000, but it’s likely in the case of major promotions like the UFC that revenue from the gate tax would exceed the broadcast rights cap. MMAPayout.com has stated before that there’s a certain cost to playing in New York, but it’s well worth it in the long term. The sport of MMA will soon have access to the world’s largest media center and some of the best promotional venues in the world.
Moreover, it’s possible that, given the current economic environment, MMA could lobby for a reduction in some of these rates as it proves its worthiness over the span of a few years.
I’m sure we’ll hear the cries from the UFC on how they’re being robbed, but it’s hard to feel sorry for them when they start charging $100k sponsorship fees, money that could otherwise be going into a sponsored fighters pocket.
JJ please think about what you say! So you want them to say nothing about the high taxes on their shows so thats even less money for the fighters. Come on man, not to mention how much has the UFC spent on trying to get into the New York market, which in turn other MMA promotions are going to get in without paying the UFC anything, THINK MAN stop being such a hater and appreciate what the UFC has done to this point. I mean do you hear Strikefarce hiring anybody, anywhere to pay for MMA to get into any market or any promotion!! DAMN HATERS!!
Well the taxes are high but hey if u wanna put on a show there go a head but don’t bitch about it mane the ufc makes a killing off of ppvs I think the fighter should get payd more
What you think and facts are 2 different things will the UFC do shows in NY yeah but instead of getting several a year they’ll get 1 big show a year and miss out on extra revenue from added shows.
Basically they’re going to have to make changes to this bill if they want the benefit of having mma in NY for anything more than 1 big UFC show. People have to smarten up the UFC is being legalized in more and more places and all of these different states will be much more attractive to Zuffa than NY when they pass ridiculous bills like this.