The organization spent millions to make MMA legal within the state and will now face high premiums.
The UFC won its lobby to legalize mixed martial arts in New York but athlete insurance in the state is proving to be costly. It has already spent millions of dollars just to be able to hold events in New York. Now that it is facing its debut event in NYC, the state’s unique coverage regulations are driving up costsw.
The state requires $1 million in traumatic brain injury insurance coverage for each fighter.
This means that the UFC will need to pay out $1,675 in athlete insurance for each fighter to make sure there is adequate brain injury protection. This coverage is for the UFC 205 event that will be held at Madison Square Garden on November 12. The total amount paid for this insurance coverage was $43,550. The reason is that there will be 26 athletes participating in 13 fights.
That said, the traumatic brain injury athlete insurance is not the only coverage that must be purchased.
The UFC has also faced the basic requirement for $50,000 in medical coverage and $50,000 in accidental death insurance policies. This usually costs around $4,000 per event. This means that the UFC may be paying close to $50,000 in premiums to cover its fighters at UFC 205. This
This first ever UFC event in New York City required that a new type of policy be written and sold in the state. AIG received approval for this coverage, according to Laz Benitez, a spokesperson for the New York Department of State.
The additional premiums the UFC is required to pay for the $1 million traumatic brain injury coverage is unique to that state. That said, other states do have different types of provisions that also drive up the costs of events. For instance, in California, promoters are required to pay for an insurance policy that totals approximately $3,800.
The promoter will need to spend a similar amount for upcoming New York events, as well. For example, on December 9 in Albany, the same types of athlete insurance coverage will need to be purchased. That card will include 24 fighters in 12 fights, so the cost for the traumatic brain injury policies will total $40,200.