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According to Governor Patterson, the State of New York is out of cash.

While New York isn't in Dubai trouble it is still horrible news for the people of New York. But since WKR is always a website for optimistic people; could this be a blessing in disguise for the upcoming fight over MMA legislation?

Well, yes and no.

Quick Side note: Remember the New York Assembly is still out of session until 2010.

Earlier this year Zuffa commissioned a study detailing the economic benefits of legalizing MMA for the state of New York. Part of that study focused on tax revenue that would be generated due to the UFC holding an event in either New York City or Buffalo. One would assume that the opportunity for the state to grab an extra million dollars in tax revenue in these economic times is a no-brainer. But it is exactly because of these bad economic times that it might not be so cut and dry.

The need for extra tax revenue may cause New York legislators to increase the taxes within the MMA bill. The current  bill taxes promoters 8.5% of their live gate gross revenue, which is already above the norm. What would happen if that jumped to 9 or 10%? Then there is a 3% tax on gross revenues from broadcasting (pay-per view money) with a cap of $50,000. What if that were to jump to 5% or if the bill removed the $50,000 cap? Could the state of New York's financial trouble result in an MMA bill, which results in promoters steering away from the state due to a heavy tax burden?

It all depends on if the opponents of MMA, within New York, sign onto the bill but demand certain concessions for their votes.

While this is sheer speculation, it is something to look out for during 2010 and the next round of negotiations over MMA legislation.