Arkansas - Athletic Commission - Combative Sports Bond 

What is a Combative Sports Bond?

A Combative Sports Bond is a type of surety bond required by the Arkansas Athletic Commission for promoters and organizers of combative sports events. This bond acts as a financial guarantee that the promoter will comply with all state laws, rules, and regulations governing combative sports. Should a promoter fail to meet their obligations, such as paying athletes or adhering to safety protocols, the bond ensures compensation to affected parties.

The bond involves three key parties:

• Principal: The promoter or organization obtaining the bond.

• Obligee: The Arkansas Athletic Commission, which enforces the bond requirements.

• Surety: The bonding company that issues the bond and guarantees payment if the principal fails to meet their obligations.

Purpose of the Combative Sports Bond

The Combative Sports Bond serves several important purposes:

1. Athlete Protection: Ensures that fighters and other participants are paid for their work and reimbursed for any legitimate expenses.

2. Public Safety and Fair Play: Enforces compliance with state laws designed to protect spectators and ensure ethical practices.

3. Financial Security: Protects against financial losses resulting from a promoter’s non-compliance, such as unpaid venue fees, medical expenses, or penalties.

4. Reputation Management: Builds trust among athletes, sponsors, and venues by demonstrating the promoter’s commitment to legal and ethical standards.

Requirements for Obtaining a Combative Sports Bond

Promoters must meet specific criteria to obtain a Combative Sports Bond in Arkansas:

1. Application Submission: Promoters must apply for the bond through a licensed surety company authorized to operate in Arkansas.

2. Financial Assessment: The surety company evaluates the promoter’s creditworthiness and financial history to determine their eligibility. A strong credit score often results in a lower bond premium.

3. Bond Amount: The bond’s face value is determined by the Arkansas Athletic Commission based on the scope and scale of the event. Typical amounts can range from $10,000 to $25,000 or more, depending on anticipated risks.

4. Payment of Premium: Promoters pay an annual premium for the bond, typically ranging from 1% to 10% of the bond amount.

5. Compliance Agreement: Promoters agree to adhere to all rules, including reporting event details, maintaining proper insurance, and ensuring the safety of athletes and attendees.

How to Obtain a Combative Sports Bond

The process for securing a Combative Sports Bond is straightforward:

1. Contact a Surety Provider: Work with a reputable bonding company to discuss your needs and obtain a quote.

2. Provide Documentation: Submit required documentation, such as financial records, event details, and proof of registration with the AAC.

3. Pay the Premium: Once approved, pay the premium to activate the bond.

4. File with the AAC: Submit the bond certificate to the Arkansas Athletic Commission to complete your licensing requirements.

Consequences of Non-Compliance

Failure to secure or maintain a Combative Sports Bond can have serious repercussions, including:

• Revocation or denial of the promoter’s license.

• Fines and penalties imposed by the AAC.

• Legal actions or claims filed by athletes, venues, or other stakeholders.

• Damage to the promoter’s reputation, hindering future business opportunities.

Promoters must remain vigilant in renewing their bond and adhering to all applicable laws to avoid these consequences.

Conclusion

The Combative Sports Bond is a critical tool for regulating Arkansas’s combative sports industry. By requiring promoters to obtain this bond, the Arkansas Athletic Commission safeguards the interests of athletes, fans, and other stakeholders while fostering a safe and ethical sporting environment. For promoters, compliance with this requirement not only fulfills a legal obligation but also establishes credibility and trust within the industry. To ensure smooth operations and a successful event, promoters should understand the bond process and partner with a reliable surety provider.

Frequently Asked Questions

How long does it take to get a Combative Sports Bond in Arkansas? 

Obtaining a Combative Sports Bond typically takes a few business days, depending on the complexity of the application and the promoter’s financial history.

Can the bond amount vary for different events? 

Yes, the bond amount is determined by the Arkansas Athletic Commission based on factors such as the size, location, and risk level of the event.

Is the bond premium refundable if the event is canceled? 

No, the bond premium is non-refundable, even if the event is canceled or rescheduled. Promoters should ensure all plans are finalized before obtaining the bond.