Professional Club and Promoter Bond - Statewide in California
Table of Contents
Brief Summary
A California boxing, kickboxing or MMA promoter cannot get a license without this bond on file with the State Athletic Commission. The standard professional amount is $50,000, and the Commission can raise it for a single card when the payroll and ticket money at stake are larger. A surety bond keeps that cash free for the event itself.
The California State Athletic Commission requires licensed professional promoters to file a Professional Club and Promoter's Bond under Business and Professions Code sections 18680 and 18684. The Commission's instructions set the professional bond at $50,000 or another amount the Commission determines, and it may raise the amount show by show. The bond runs to the State of California on Commission form PR005.
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How to Apply for a Professional Club and Promoter Bond:
- Complete the Commission's promoter application and pay the $1,000 professional application fee.
- Have a surety authorized in California execute Commission bond form PR005 naming the State of California.
- Set the penal sum at $50,000 unless the Commission has set a different amount.
- Submit the bond with the application, financial statement, photo, resume and Live Scan.
- File a new bond form at renewal if your bond has changed.
- Be ready to increase the bond for a specific event if the Commission requires it.
Detailed Information About the California Professional Club and Promoter Bond:
The amount can change by event
Most promoters plan around the $50,000 figure in the Commission's application instructions. That is the starting point, not a ceiling. The Commission may require a larger bond for a specific event based on the financial obligations of that show. For a temporary increase it also accepts a cashier's check, which is held until every check for the event has cleared.
Who files it
Anyone applying for a California professional promoter license for boxing, kickboxing or mixed martial arts files this bond with the State Athletic Commission. Clubs that hold licensed contests are covered by the same form. The application fee for a professional promoter is $1,000 and is nonrefundable. Amateur promotions are now handled through the Commission's delegated bodies, such as USA Boxing and CAMO, so contact them about amateur requirements.
What the bond pays, in order
The Commission's bond form lists the order of payment if the promoter defaults:
1. taxes and fines owed to the State 2. contributions for medical insurance and to the pension and disability fund 3. assessments for neurological examinations 4. purses owed to fighters 5. refunds to ticket buyers 6. fees owed to referees, judges, timekeepers and physicians 7. if an approved event is canceled without good cause, an amount up to the Commission's actual cost of approving it
The Commission decides how bond money is allocated, and that decision binds both the promoter and the surety.
Other financial requirements
The bond is separate from the $50,000 in liquid assets the Commission expects to see on a promoter's CPA prepared financial statement. Promoters must also arrange a $50,000 short term medical insurance policy for fighters before each professional event. In lieu of a bond, a promoter may assign a bank savings account or certificate of deposit to the Commission.
Eligibility and Requirements for a California Professional Club and Promoter Bond:
- A surety authorized to transact general surety business in California.
- Bond conditioned on compliance with B&P Code sections 18680 and 18684.
- Continuous bond that runs with each license period.
- Personal financial statement on CPA or PA letterhead showing at least $50,000 in liquid assets.
- Corporate officer information, photos, resumes and financial statements for each owner or officer.
California Professional Club and Promoter Bond FAQs:
No. $50,000 is the standard amount in the Commission's instructions, but the Commission may set a different amount and may require an increase for a specific show based on its financial obligations.
Yes. The Commission accepts an assignment of a bank savings account or certificate of deposit in lieu of a bond. For a one event increase it also accepts a cashier's check.
State taxes and fines come first, then medical insurance and pension contributions, neurological exam assessments, fighter purses, ticket refunds and officials' fees, in that order.
No. The Commission looks for at least $50,000 in liquid assets on your financial statement, which is a separate test from posting the bond.
The surety prices the bond after reviewing the promoter's credit and finances. A larger bond required for a big event is priced on that higher amount.
