California Professional Club and Promoter Bond
A guide to one of the most important requirements for professional clubs and promoters in California!
What is a California Professional Club and Promoter Bond?
It a financial security required by the California State Athletic Commission. Every person who is applying as a professional club and promoter within the state must furnish this bond before a license is issued.
The purpose of this bond is to ensure that the professional club and promoter will comply with the relevant provisions of the California Business and Professions Code; one of which is for the applicant to perform the following legal duties:
- Pay all taxes and fines due and payable to the State of California.
- Pay the medical insurance and the pension and disability fund contributions.
- Pay for neurological examinations assessments.
- Pay of the purses to the competitors.
- Repay the consumers for the purchased tickets.
- Pay the referees, judges, timekeepers, and physicians’ fees.
- Pay the amount determined by the Commission if the match or contest is cancelled.
This requirement is in pursuance of Section 18680 of the California Business and Professions Code.
How much does a California Professional Club and Promoter Bond cost?
The bond premium will depend on the credit score of the applicant. Those who have excellent credit scores will be eligible to pay a low bond premium, or just 1% of the bond amount.
The bond amount will be determined by the California State Athletic Commission.
How can I get a California Professional Club and Promoter Bond?
We have made the surety bond procedure easier for you! Just follow these simple steps:
STEP 1: You must first apply for this type of surety bond. If you are ready to do that now, you may APPLY HERE!
Once we have received your application, we will immediately start the bonding process. We will inform you about the important documents that you need to submit for the next step, which is the underwriting process.
STEP 2: An underwriter will take a thorough look at the following:
- Your financial strength
- Your job performance history
- Your credit score
STEP 3: After the underwriting process has been fulfilled, we will issue your surety bond and send it to you immediately!
How does a California Professional Club and Promoter Bond work?
This bond has 3 parties:
Principal – Professional club and promoter license applicant
Obligee– State of California
Surety – surety bond provider
Under the terms of this bond, the Principal must comply with the relevant laws of the State. The Surety will assure the Obligee (beneficiary of the bond) that the Principal will fulfill all the legal obligations.
If the Principal violates the bonded obligations, the Obligee can file a claim against the bond. The Surety will first investigate the validity of the claim. Once the Surety has paid the Obligee, the Principal must reimburse the Surety of the full amount.
Apply for this bond HERE!