Due to a unique $1 million traumatic brain injury insurance provision recently introduced in New York, the UFC will face a significant payout to cover the policy for it’s upcoming shows in the state.
The UFC will be required to pay out $1,675 per figher for each of the two shows they have planned in the remainder of 2016, working out at a total of $43,550 just for UFC 205 on November 12th in NYC, while UFC Fight Night 102 on December 9th will come in just under that at $40,200 due to having a slightly smaller card.
On top of that the UFC is already used to paying separate medical and accidental insurance insurance policies, which add up to another few thousand dollars overall, bringing the full insurance cost close to $50,000 in total for UFC 205.
Given that the McGregor Vs Alvarez event is set to rake in countless millions of dollars for the promotion, that cost may seem insignificant, but the new TBI provision will hit smaller companies, who also now have to play by the same rules in New York, hard.
In fact, the provision also includes boxing promoters, and they are said to be up-in-arms about it, believing it could lead to their sport dying out in the state.
“The sport has, for all intents and purposes, been evicted by a legislature willfully ignorant of both the boxing and insurance industries,” veteran boxing promotor Lou DiBella said in a press release. “The actions of the powers that be in Albany and their political appointees are depriving New York state residents in the sport of boxing from their livelihoods. Small businesses are being put at jeopardy with no recourse or ability to continue plying their trade. This is a disgraceful abuse of legislative and state power.”
Smaller MMA promotions will also be having second thoughts about tapping into the potentially lucrative New York market due to abnormally high insurance fees there, which don’t exist in other states.
Nevertheless, World Series Of Fighting have already announced an event on New Years Eve at Madison Square Garden, while Bellator are expected to step into the New York market as well in 2017.
