In Chaos: Censured Boss and Bankrupt Agency of California State Athletic Commission
In Chaos: Censured Boss and Bankrupt Agency of California State Athletic Commission Even hailed as the largest sanctioning body in combat sports, the California State Athletic Commission is now in big disarray. During their meeting last June 26, the agency revealed that they are near bankruptcy since the expenses went overboard their profits. According to the Department of Consumer Affairs, the resulting deficit of $700,000 is seen if the conditions on financial status persisted until fiscal year 2013. This would highly affect MMA and boxing since it would result to the agency’s stop in approving several programs and regulation of combat sports. Having no revenues to pay even the basic functions of CSAC, they will have to stop their operations and cancel all the regulated events of their commission.
Their financial problems were already known by its executive officer. However, he did not inform the board of the bankruptcy going on the athletic funds. This has placed him on a great debate during the meeting last Tuesday. Another commissioner of CSAC, Linda Forster, resigned just last Thursday because of the financial crisis that came up.
Even under this disarray, CSAC still holds the regulation of UFC July 11 event on FUEL 4 show. This will happen in San Jose HP Pavilion. Similarly, they also regulate the event of Fox 4 that will happen in August 4.
During the press conference of CSAC in South El Monte, the executive officer declared that the decrease in profit resulted from their failure to attract big events during the past 2 years. Just last year, they only regulated 12 events that only generated a profit of $25,000. This has further declined to 7 because of tax issues from promoters. This has also been the problem of Strikeforce as a sole MMA promoting company.
For now, there are no scheduled MMA fights affected by this issue. However, this situation poses a threat to the industry of combat fights.