New York MMA Legislation Details

New York is getting close to voting on MMA legislation (just in committee) and there are some new facts out about the bill. 

An 8.5% gate tax on all gross revenues generated from ticket sales. This is sort of hefty, and more than anything would be discouraging to mid- and lower-level promoters than to someone like the UFC or Strikeforce.


 A 3% tax on gross revenues from broadcasting, with a cap of $50,000 (i.e., the State maxes out on 50 large).


The New York State Athletic Commission has to add martial arts organizations to it's "approved list", which means blokes representing the United States Naked Oil Wrestling Federation and the International Karate and Coffee-Enema League might now have a chance at putting on sanctioned events - provided those organizations are viable and meet NYSAC standards.


 A "professional combative sports participant" is any fighter who competes for money, or teaches, or "pursues or assists in the practice of mixed martial arts as a means of obtaining a livelihood or pecuniary gain". Um, doesn't this sound like anyone connected to MMA, including journalists and fight gear and clothing salesman, would now be considered a participant?


A "professional combative sports match or exhibition" is now any bout where participants receive anything for their troubles or admission is charged to the event. This pretty much sews up the loophole that allowed events like the Underground Combat League.


Gyms teaching MMA are subject to licensing by the NYSAC.


 There's a three-year sunset clause on the bill, meaning that after three years the law is automatically repealed. Really, think of this just as a mandatory review clause to encourage tweaking if things aren't working out as planned.    

Clearly there are a lot of concessions here to try and get the Bill to go through. The 8.5% tax on live gates is higher than most states. There is also the inclusion of a 3% tax on gross revenues from broadcasting (i.e. PPV) clearly an attempt to please Bob Reilly. However an astute individual will realize it is capped at $50,000 so it probably won't make Bob too happy.

Then there is a host of licensing dealing with teachers and participants. This is loosely defined so an aggressive law enforcement officer may be have some leeway.

Finally the pièce de résistance the 'sunset' clause. Some may view this as a way of revoking the law in three years but I am not so sure. Personally if MMA legislation passes I don't think New York will reinstate the band, as long as the UFC goes to Madison Square Garden once or twice.

I see it more as an opportunity to clean up some of the stricter requirements in the legislation that was needed to get it passed the first time.

Still we are two months away from the end of the New York Assembly's session so there isn't much time left. Especially when you consider the Governor wants the Assembly to take up same-sex marriage right issues. Polarizing, I think so.