A promoter bond is a surety bond that guarantees event promoters — usually for competitive sports — fulfill their contractual obligations, such as payment to applicable parties. Promoter bonds are often required when obtaining your license and will hold you responsible for following all rules and regulations. Those with good credit can expect to pay 1% to 5% of the minimum required bond amount set by the State Athletic Commission, which often ranges from $2,000 to $50,000.
If you’re pursuing your event promoter license and need a bond, keep reading. In this promoter bond guide, we’ll cover:
Promoter bonds are surety bonds unique to promoters of events — usually sporting events, like boxing, wrestling, and martial arts. These bonds require that event promoters meet certain obligations, usually related to issuing payments and acting in compliance with the law and rules of their license. Since bonds help guarantee lawful and ethical behavior, athletes can feel confident working with promoters.
Promoter bonds, like other surety bonds, involve three parties:
Let’s say an athlete in California is working with a bonded sports promoter. However, the sports promoter was found committing fraudulent activity that resulted in financial loss to the athlete. The athlete and the California Athletic Commission file a claim against the promoter bond and the athlete is reimbursed for the full loss.
Promoter bonds are frequently needed for promoting sporting events, such as boxing, mixed martial arts, wrestling, and more. Before somebody can promote these types of events, their State Athletics Commission requires them to obtain a license. Part of the licensing process is buying a promoter bond.
Promoter bonds help ensure event promoters act ethically and lawfully. This generally includes timely payments to applicable parties, complying with industry regulations, and following rules related to their license. The bond also requires the event promoter to fulfill their contracts to event participants, agents, venue owners, and other related parties.
Similar to other surety bonds, there are three things you should note when buying a promoter bond:
When a claim is filed against your promoter bond, the surety will conduct an investigation to determine whether the claim is true or not. If the claim is true and the surety confirmed you did commit some wrongdoing, then the claimant can be reimbursed for their financial loss.
Although the surety pays the claim on your behalf, you are still financially liable. You are responsible for repaying the surety for the full amount they paid to fulfill the claim.
When securing your promoter license, the State Athletics Commission will set requirements for how much your promoter bond will cover. The minimum required amount will vary per state. The Nevada Athletic Commission, for example, sets the minimum required amount at $10,000 while the Massachusetts Athletic Commission sets it at $50,000.
Promoter bonds typically cost 1% to 5% of the minimum required amount. Let’s use a promoter bond for $25,000 as an example. A promoter with good credit can expect to pay between $250 (1%) and $1,250 (5%). Those with bad credit, however, will likely be subject to higher rates — somebody with poor credit, for example, may pay $2,500 (10%) or more.
Promoters can purchase a promoter bond from private insurance companies or businesses that specialize just in surety bonds. Fortunately, buying a promoter bond is typically a more straightforward process than other types of surety bonds, and can be done completely online with the following steps:
Submit an application with the surety, which typically includes your personal and business information (e.g., business name and address).
Receive a premium quote based on your qualifications.
Purchase and receive your bond (or refuse and shop around).
File your promoter bond with the State Athletic Commission, or whichever governing agency requires the bond.
Obtaining a promoter bond is easy when applying with Worldwide Insurance, Inc. Just fill out our initial application form and get an instant quote in minutes. With rates starting as low as 1%, we issue all types of surety bonds in all 50 states. No credit check required and no obligation.
A promoter bond is a financial guarantee for promoters of events to meet their contractual obligations, such as issuing payments timely and acting in compliance with the law. Often used by promoters of events, like boxing and mixed martial arts, a promoter bond is a requirement for securing your license. If you violate your contractual obligations, the wronged party who suffered some financial loss can file a claim against your bond to get reimbursed.
A promoter bond will cost 1% to 5% of the required amount for good-credit applicants. The required amount is set by the State Athletic Commission and will vary per state. A $50,000 promoter bond in Massachusetts, for example, would typically start at $500 (1%) and go up to $2,500 (5%) or more depending on your credit score.
Terms on a promoter bond typically last one year. You would need to pay another premium to renew your bond and stay covered.
Yes, bad credit applicants can still get bonded but may face higher premiums. Worldwide Insurance, Inc. works with thousands of business owners, contractors, and individuals — even those with low credit — to help them meet their bonding requirements.