Running a boxing promotion business can be rewarding both personally and financially, but getting this type of venture off the ground requires careful planning. The start-up process involves more than simply obtaining a license from a government agency, although that is an important step. Relationship building and representing the right fighters are also critical for success.
Obtain a Valid Promoters License
For states that sanction boxing, aspiring promoters must obtain a valid license from their state’s athletic commission before they can start their business. For example, Pennsylvania requires candidates to fill out an application and an addendum, plus pay an annual fee for licensing. The licensing process involves a criminal background check in order to protect the integrity of the sport and the reputation of fighters. Additionally, Pennsylvania requires promoters to carry a surety bond, which is kept on file with the state commission. Health insurance and financial statements may also be required before a license is issued.
Obtain Working Capital
A promoting business requires working capital to cover expenses until the company turns a profit. This means that money needs to be set aside in a bank account to pay for setting up events and everything else associated with arranging and promoting boxing matches, including boxing exhibition permits, contract preparation fees and medical coverage. Without working capital to cover pre-fight expenses, it would be difficult to start a promotion business.
Build Relationships with Managers and Fighters
Promoters match up fighters with the right venue and then publicize the event, which requires having a network of industry contacts. Promoters must establish relationships with various managers and fighters to be able to earn their fees for promoting a fight. To accomplish this, promoters can start frequenting popular gyms and introducing themselves to prominent figures in the boxing community. They can also join the Professional Boxing Promoters Association to learn techniques for developing relationships. Once relationships are established, promoters need to retain a lawyer to draw up contracts before matches are held.
Build Relationships with Venue Owners
It’s also important to have established relationships with casino directors, gym owners and other proprietors that can host boxing matches. This is important not only for the fans who want to see fights at exciting venues. It is also critical for ticket sales, because promoters’ commissions are often tied to the cash generated by the event. Promoters need to reach out to these proprietors and set up meetings to discuss potential matches. Promoters can also attend other boxing matches and introduce themselves to proprietors in the process. Having relationships with proprietors that have large amounts of seating can greatly enhance the return generated by a boxing promotion business.