California is one of the most progressive federal states in many business terms. Even if there were no other achievements, Silicon Valley with all its innovations justifies the claim above.
But California isn’t the promised land only for techpreneurs, engineers, and venture capitalists.
This past October, the Great State of California became the first US federal state to have adopted the law on the Mixed Martial Arts Retirement Benefit Fund, coming into effect on January 1, 2024. In the fighters’ community, this news has gained almost the same publicity as the stunt that the WWE Hall of Famer Snoop Dogg decided to quit smoke.
Some taxpayers might raise their eyebrows wondering whether the money from taxes will be redirected to this fund. No worries thereof: the fund will gather assets from selling souvenirs, sports paraphernalia, and MMA event tickets on the territory of the State of California. So, if you want to support MMA fighters, purchase such merchandise, or place a bet or two on the fights held in California; some MMA associations have sponsorship contracts with betting sites. If doing so, consult sites with up-to-date, in-depth analysis, as Californians do not have any in-state options currently as it is not legal for sportsbooks to run from inside California. However, offshore betting sites are open to players in California, giving MMA fans plenty of safe options to place their bets and support the fighters (source: https://thesportsdaily.com/california/betting-apps/).
The CSAC will be in charge of implementing the retirement fund in practice. This organization has also prescribed some initial rules in terms of pension eligibility. Every fighter who has participated in a minimum of 39 rounds in fights supervised by the CSAC will be entitled to start receiving a pension from this retirement fund starting at the age of 50. The CSAC is generally involved in the state-level MMA scene. In 2017, their rulebook on MMA-fights prescribed the new rules regarding the fighters’ attire and fouled grabs.
In this deal, everything is transparent: one dollar per each sold ticket will go to the fund. It’s also been announced that MMA-related vanity license plates will soon be available on the market, with the earnings directed to the fund.
This law is an important step for more than 400 MMA athletes who possess the CSAC licenses (California State Athletic Commission).
It’s no wonder that The Golden State is the initiator of special legislation, MMA-wise. In fact, Southern California is probably the best place in the whole world if you want to enjoy mixed martial arts. For instance, San Diego is the central hub of Jiu-Jitsu in the entire United States, and Los Angeles is right behind. Also, San Diego has a huge concentration of the US Marine and Navy forces, which adds to the competitiveness in terms of the fitness culture and applied martial arts.
With this new legislation, Californian MMA athletes will finally enjoy the same rights as their boxing counterparts.
In 1982, the Professional Boxers’ Pension Plan was legally adopted, as the only pension fund for boxers on a global scale. It started paying out pensions in 1999.
Ever since that year, every Californian boxer who has turned 50 and fought in at least professional 10 rounds per year for 4 years with no more than a 3-year pause is eligible to start receiving their respective pension. The same goes for boxers with a minimum of 75 rounds fought in California with no more than a 3-year pause. Up to now, 235 retired boxers received a total of $4 million in pensions from that fund. These retirees receive their pensions in lump-sump transactions; the average payout to these 235 retirees was $17,000.
Given the harsh nature of MMA disciplines and the toll they take on the athletes’ bodies, forming a pension fund speaks in favor of a humane approach to this matter from the State of California and the CSAC. However, there’s still a lot of room for advancement in terms of health insurance coverage for these athletes. In MMA – as well as in boxing (think Muhammad Ali) – fighters don’t only suffer the visible physical injuries, but many fighters start to suffer from neurological damage years after the end of their careers.
This initiative and legislation could inspire MMA fighters and promoters to form a Californian MMA association or union and additionally protect those brave sportspeople.
What’s more, the officials of the CSAC and the State of California are setting an example to other states. If all the US federal states bring similar laws and regulations regarding professional sports, MMA included, the entire federal sports market would become a fairer and balanced playground.
