UFC.com announced via twitter that Wyoming became the 45th state to legalize MMA. The state announced that it has created an MMA governing board to oversee regulation which may hurt more than help local MMA.
Wyoming focused on legislation that specifically addressed regulating mixed martial arts as previous efforts to re-establish the defunct office of the boxing commissioner were negated. The office would have regulated MMA in addition to boxing.
One of the reasons behind regulating MMA would be to attract the UFC to hold a show in the state – not a PPV but maybe a UFC on FX show. A UFC event would draw fans from the state as well as nearby Colorado.
The MMA board, which goes into effect July 1, would consist of an appointed board of three individuals. The board would draft new rules and regulations for MMA and work with other state commissions to see how they operate.
But establishing a board would hurt local MMA.
Via the Rapid City Journal:
The MMA board will be paid for by taking 5 percent of the gross receipts from each MMA fight in the state. Some fight organizers said that could lead some promoters in the state to stop holding events.
Stephen Alley, an MMA promoter who has held fights in Casper since 2006, said attendance at those fights has declined in recent years to the point
that an additional fee would be devastating.
Payout Perspective:
The good news is that the state of Wyoming is regulating MMA which legitimizes the sport as well as provides safety guidelines for the fighters. The bad news is that by establishing an MMA board, it is indirectly hurting local MMA promoters. Its an unfortunate twist that to promote the sport, the state is hurting it. We shall see if Wyoming can find a solution to the problem.
Picture via UFC.com twitter
I just dont get people. The local promoter is bitching about a 5% tax on gate. I hate to break it to him but if you cant afford a 5% tax on gate then you shouldnt be holding MMA events to bgin with. To be honest i wouldnt let this guy run a lemonaide stand. If the state did attract a UFC event it would be a huge shot in the arm to MMA in the state and he would benefit. But he is to near sided running his dead end shows to see that. Even if you gate was only $100 you would only have to pay $5. I dont think its going to make a hell of a lot of difference. Its called paying your own way. Who is supposed to fund the commission? Is the UFC supposed to be your meal ticket? Is the general public which apparently none got to mma shows have to pay more taxes on top of what they already pay to fund something they dont use? Where should the money come from? Of course he complains because without the tax he would get to keep that 5% in his own pocket.
Be proud you are in a state that welcomes and supports MMA on the political level. They are looking to grow the sport in the state so you can actually have guys fighting in front of someone. Very strange to hear someone complain that people quit going to MMA events them complain about the only people doing anythign to change that.
Arena set-up/removal, production costs, staff, fighters, insurance, state/federal/local taxes, licensing, AND 5% tax on gate? Is it worth producing an event when you’re not even certain to brake even? 10% net profit, if that, is a pittance for small promoters. Who could take that risk besides UFC?
Why not appoint volunteer administrators who work part time and actually love the sport? The government is a leech, and it must be torn off the flesh of the producers and thrown back deep into the sewer from where it came. 5% is absurd.
This additional tax is a disincentive to produce MMA events. Local promoters need all the additional revenue they can get to reinvest. I’m all about researching the sport to make it safer but much of this work has been done, hence the Unified Rules. Are these three individuals motivated and qualified to further MMA’s safety. I doubt it (please prove me wrong). What are other states charging?? NY is proposing 8.5% on tix sales and 3% on broadcast rights.