New York Overhauls MMA Bill as Deadline Looms

[ErikMagraken]

Originally published here - New York Overhauls MMA Bill as Deadline Looms | Combat Sports Law

As the New York State Assembly struggles to gather the needed votes to pass proposed legislation to legalize professional MMA, the Bill has been overhauled with a view to obtain the needed support. The current text of Bill A02604 can be found here.

MMA journalist Jim Genia, who has provided coverage of these legislative developments that are second to none, hasprovided the following summary of the revamped Bill –

• Amateur MMA is permitted, and will be sanctioned by the Athletic Commission or by third-party organizations approved by the Commission. There will be no more unsanctioned events allowed;
• The Commission will have jurisdiction over all combative sports, including professional wrestling, martial arts and kickboxing. The list of organizations approved for sanctioning of martial arts events is gone, and the Commission will lay out criteria for third-party organizations to get approval to operate within the state;
• These third-party organizations may have the power to sanction pro combative sports, including MMA events;
• The Commission will have jurisdiction (and licensing ability) over gyms that provide sparring in preparation for pro boxing or pro MMA bouts;
• Accident insurance for a minimum of $50,000 is required by all pro combative sports promoters, with a million dollar insurance minimum for competition injuries resulting in major brain injuries; and,
• All combative sporting events, pro or amateur, will pay an 8.5% tax on gate and a 3% tax on broadcasting rights sold (this includes Internet broadcasts)

 

[Punch]

There will be no more unsanctioned events allowed

Most important part to me, right here.

 

[Zeph]

Anyone know how the insurance and tax compares to other states policies?

 

[Ministry of Silly Walks]

Anyone know how the insurance and tax compares to other states policies?

i'm not sure about the tax, but the insurance is about that in kentucky. i know it has a minimum of 5ok. that came from todd neal, the ac inspector. i wouldn't be surprised if they all require about the same, as far as that goes. from what i understood, there isn't many options in insurance providers for mma events, so i'd bet a lot of them use the same companies. this is, unless it's changed in the past two or three years.

 

[Spazebra]

Other important provisions included in the bill are an expansion in personnel for the Commission (so as to be able to cover the expected increase in the number of events), and, possibly, most importantly, a requirement that doctors be present at all combative sporting events!!
A few observations:
First, the populist effort to change the legislation and avoid the "death" of amateur MMA in New York State was, actually, successful! The MMA community deserves congratulations on this fine work. Even if the bill fails to pass, the significance of this cannot be overstated!
Second, the insurance requirement is going to make it difficult, at best, for sone smaller pro MMA promotions to do shows in the state. Sure, the UFC and Bellator will be able to afford it, but it's going to be tough for the groups such as Cage Fury Fighting Championships, Matrix Fights, Ring of Combat and CES MMA to afford the cost. This may be an area of potential compromise down the road.
Finally, this revamped bill, pretty much, kills the idea that money is the only driving force that speaks in the NY State Capitol. This bill puts real teeth into the effort to provide a safe, regulated environment for MMA athletes in NY to practice their craft, as well addressing the concerns of amateur community. If this thing passes, there will be no more wide variance in the quality of third-party sanctioning organizations. There will be no "legalese" for unsanctioned shows to hide behind, and there will be a safe, regulated opportunity for amateur MMA to grow and help nurture the next generation of professional MMA starts from New York.
It's down to the wire, now! This is the best hope yet for the MMA landscape in NY to change forever. Let's all hope it doesn't pass by!!

 

[Wild]

Think it gets passed? Seems like there is too much discussion for it not to be, in my opinion.

 

[Spazebra]

This is the best hope we've had yet in New York. There were "only" a half-dozen votes needing to be swayed, and this legislation address the stated concerns of many of the fence-sitters and the "soft No's." I've personally contacted several of the undecided via email and plan to contact more. If we all make a final push, I think we may have a winner!

 

[ErikMagraken]

Think it gets passed? Seems like there is too much discussion for it not to be, in my opinion.

Jim Genia is a reporter in NY who has followed this closer than anyone. He is optimistic it gets the needed votes.

 

[ErikMagraken]

Anyone know how the insurance and tax compares to other states policies?

The tax rate is higher than most. The $1 million insurance provisions for serious brain injury is a unique requirement to my knowledge.

 

[Spazebra]

ALL tax rates are higher in New York than most other states, so I wouldn't have expected the rate in the revamped bill to be any different. The key will be limiting the ability of local governmental bodies to add additional tax burdens. In reading the bill, though, I didn't see an explicit prohibition against that.

 

[Wild]

Jim Genia is a reporter in NY who has followed this closer than anyone. He is optimistic it gets the needed votes.

Thanks Erik. Hoping it gets passed. Not for Zuffa, but for amateur MMA in that state.

 

[Zeph]

Sounds like it will clean up amateur MMA, kill any low level pro MMA, and allow the UFC to do big shows, no fight nights in New York. And the last one is dependent on if the UFC want to take on the 1mil liability, they can afford it, but if they don't have to pay it anywhere else, I can't see them being eager to take up that liability.

 

[ErikMagraken]

Sounds like it will clean up amateur MMA, kill any low level pro MMA, and allow the UFC to do big shows, no fight nights in New York. And the last one is dependent on if the UFC want to take on the 1mil liability, they can afford it, but if they don't have to pay it anywhere else, I can't see them being eager to take up that liability.

For what its worth the $ 1 million brain injury insurance clause seems to do not much more than pay lip service to the issue. The insurance is only required for "the treatment of life threatening brain injury sustained in a program operated under the control of such licensed promoter where an identifiable causal link exists".

While life threatening brain injuries do occur in combat sports they are very rare. The real brain injury risk comes from multiple concussive and sub concussive blows. These are generally not acutely "life threatening". In other words this $ 1 million insurance requirement exists only in very narrow circumstances which ought to make coverage feasible to purchase.

 

[Zeph]

For what its worth the $ 1 million brain injury insurance clause seems to do not much more than pay lip service to the issue. The insurance is only required for "the treatment of life threatening brain injury sustained in a program operated under the control of such licensed promoter where an identifiable causal link exists".

While life threatening brain injuries do occur in combat sports they are very rare. The real brain injury risk comes from multiple concussive and sub concussive blows. These are generally not acutely "life threatening". In other words this $ 1 million insurance requirement exists only in very narrow circumstances which ought to make coverage feasible to purchase.

But would it leave the promotion liable to anyone who suffers TBI in their later life, if they fought in New York? So anyone that fought for you in New York, and then later develops a life threatening(could a 'way of life' altering injury be considered life threatening?) brain injury, could sue in New York? Or is it simply if they get it immediately in that event?

 

[ErikMagraken]

But would it leave the promotion liable to anyone who suffers TBI in their later life, if they fought in New York? So anyone that fought for you in New York, and then later develops a life threatening(could a 'way of life' altering injury be considered life threatening?) brain injury, could sue in New York? Or is it simply if they get it immediately in that event?

The law does not create any new promoter liability. It simply sets minimum insurance provisions immediately for the event itself.

 

[Zeph]

The law does not create any new promoter liability. It simply sets minimum insurance provisions immediately for the event itself.

By having to have insurance you aren't admitting liability?

 

[ErikMagraken]

By having to have insurance you aren't admitting liability?

Not at all. Admitting 'liability' speaks to admitting some sort of wrongdoing (ie negligence, fraud etc). At most these insurance requirements speak to the fact that there are inherent dangers in combative sports including brain injury. This is a conclusion a court would have no problem reaching even absent this statute.

 

[Spazebra]

Thanks, Eric, for bringing a learned legal viewpoint to the discussion. The terms used in the bill are not always crystal-clear to us laymen, and you do a great job of explaining it all.
There is one thing that should be apparent to all, legislators, legal professionals and laymen alike: Continuing with the present state of unregulated, unsafe MMA will lead to a serious injury at some point. Then the questions of liability and wrongdoing will really come into play. The opportunity to make that possibility a non-starter is at hand in NY, and we hope the Assembly realizes what a crucial moment in time we have.

 

[Spazebra]

Sorry. for the mistype! Thanks Erik!!

 

[ErikMagraken]

Thanks, Eric, for bringing a learned legal viewpoint to the discussion. The terms used in the bill are not always crystal-clear to us laymen, and you do a great job of explaining it all.
There is one thing that should be apparent to all, legislators, legal professionals and laymen alike: Continuing with the present state of unregulated, unsafe MMA will lead to a serious injury at some point. Then the questions of liability and wrongdoing will really come into play. The opportunity to make that possibility a non-starter is at hand in NY, and we hope the Assembly realizes what a crucial moment in time we have.

The Bill seeks to weed out unregulated MMA. It prohibits all unregulated MMA, both pro and ammy so the current unregulated contests in the State should become a thing of the past if this Bill passes.

 

[Wild]

There is one thing that should be apparent to all, legislators, legal professionals and laymen alike: Continuing with the present state of unregulated, unsafe MMA will lead to a serious injury at some point.

Agree. This is the main reason that I want to see it passed. Couldn't care less is Zuffa does events there or whatever...just want to see the young guys coming into the sport, better protected.

 

[kneeblock]

Somewhere Peter Storm is preparing his next UCL and giving no Fs.

 

[Wild]

The Bill seeks to weed out unregulated MMA. It prohibits all unregulated MMA, both pro and ammy so the current unregulated contests in the State should become a thing of the past if this Bill passes.

The best thing that will come with the bill passing, right here.

 

[kneeblock]

Prohibiting unsanctioned MMA is virtually unenforceable. It's been prohibited for years and won't go away. There are very few amateur fighters coming up in gyms who do the unsanctioned shows here. That's why the fighter safety thing has always been a red herring. Occasionally you'll get guys who are well trained at these shows, but they're treating it like a smoker.

The vast majority of people who do the unsanctioned shows here have little formal training, wander gym to gym or train with rooms of tough guys rather than skilled professionals. Most legit amateurs and pros travel. All the bill does is open opportunities for promotions (and hopefully fighters) to make money. I would've liked to see some of the previous language that forced collective bargaining so the legalization effort could have been truly progressive, but at this point I'll settle for small steps.

 

[kneeblock]

The other thing that concerns me about this bill is its regulation of gyms and grappling tournaments. Venues are incredibly pricey here in NY for a decent grappling show. Add in a tax and only IBJJF will be able to afford shows.

It's interesting to imagine inspectors going into Renzo's. Chatting up Gordinho to find out if they have enough fire extinguishers.