New York Senate Passes Budget Proposal

The Associated Press reported yesterday that the New York State Senate has approved a $136 billion State Budget Proposal that would also legalize the sport of mixed martial arts.

The New York Senate has voted 32-29 for a $136 billion spending plan that Democratic leaders say would soften some budget cuts proposed by Gov. David Paterson while still reducing spending by more than $4 billion, including $1.4 billion in aid to schools.

 

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Other provisions would legalize mixed martial arts and extend film production tax credits, as Paterson proposed, but reject wine sales in grocery stories and a provision requiring DNA records from misdemeanor offenders.

Payout Perspective:

The state budget proposal includes a provision to regulate mixed martial arts, because Gov. Patterson recognizes the impact that events held within the State of New York might have on its economy. For example, the UFC would likely put together a huge card for its first event at Madison Square Garden and it could easily fetch between $4 and $5 million at the gate. At the proposed gross receipt tax of 8.5%, nearly $400,000+ in revenue would make its way to the government. That doesn’t even take into account the tax on merchandise or concession sales, nor the overall positive economic impact on the city in general.

Important note: the process is not yet complete. There’s still some wrangling to go, which means any celebration would be premature.