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Old 06-30-2012, 05:51 AM   #1 (permalink)
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California State Athletic Commission faces money trouble.

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Things are not going well for the California State Athletic Commission. It is having severe financial troubles, and recently censured George Dodd, its executive director, for not telling the board just how bad the money situation is.

MMA Fighting is reporting the group that oversees MMA events is already under water, and could run a deficit of $700,000 by the time the year is over.

"Without the ability to pay for even basic services, the Commission will have no choice but to cease operation immediately and cancel or postpone indefinitely all Commission regulated events," Department of Consumer Affairs (DCA) director Denise Brown wrote in a recent letter to CSAC's executive director George Dodd.

Zuffa has three events scheduled for California in the next two months. UFC on Fuel 4 will be in San Jose, UFC on Fox 4 will take place in Los Angeles, and Strikeforce's championship bout between Ronda Rousey and Sarah Kaufman is set for San Diego. None of these events are expected to be affected, but California is a go-to state for Zuffa. California hosted four UFC and Strikeforce events in 2011.

Considering the state's financial problems, it's not a surprise to see the CSAC stumble. California is projecting a deficit of $4 billion and has been running in the red for four years. Its financial problems are so well-known there is a Wikipedia entry devoted to California's budget crisis.

But where the true problem lies for the CSAC is how to dig out of its hole. Without money, it can't run high-grossing events, but without high-grossing events, it can't earn money.

Well this kind of sucks. In my own closed up bubble i somehow felt that commissions were just ran on government money and they had no way of having financial problems (And yeah i know how far in debt the U.S. is, scary stuff). I guess this is a reality check for me that it isnt how things work. It would suck really bad if the UFC has to cancel an event or isnt allowed to have one in California because of the commission financial trouble. I wonder if the UFC would be forced to donate them money if this were to happen. (That be ridiculous though wouldnt it???) I dont know much about this subject so im replying with an uneducated opinion. Im sure many of you know alot better then i do about how this stuff works and how something like this can happen and if this is even a big deal now or possibly in the future.
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Old 06-30-2012, 08:11 AM   #2 (permalink)
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Zach Arnold at Fight Opinion has been covering this for maybe a month, and it is a strange and complicated story. The CSAC and the California Department of Consumer Affairs both come off looking like jackasses.

I have no idea if Zuffa and/or the big boxing promoters like Golden Boy and Top Rank could just bail them out. They certainly have the means, but even if they wanted to, would they be allowed to do a huge favor for the government agency that regulates them? Would they get special treatment in exchange? It'd be a weird situation.
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Old 06-30-2012, 08:14 AM   #3 (permalink)
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As bad as it sounds this could be very good for MMA. With the CSAC out of comission (herpderp) another comission could expand and cover basically all of the US. No more miscommunication, no more stuff like the Sonnen and Diaz incidents. I just hope it's not Keith Kizer on top of it.
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Old 06-30-2012, 08:27 AM   #4 (permalink)
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The CSAC is a government run organization. Being that it is in California and that state not only has no money, but is in debt up to its ears, the CSAC is not getting the funding it requires to run.

The way it works is the CSAC gets state money to do day to day buisness, and charges fees for any event that covers the costs for regulating the event. While they are still getting their fees, they are not getting near the funding from the state they need.

Can the MMA/Boxing help? Certainly not by just handing over money. That would be a massive conflict of interests.

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As bad as it sounds this could be very good for MMA. With the CSAC out of comission (herpderp) another comission could expand and cover basically all of the US. No more miscommunication, no more stuff like the Sonnen and Diaz incidents. I just hope it's not Keith Kizer on top of it.
If the CSAC folds, that does not leave room for another to expand. Each state only has jurisdiction over their own state. The only way for a commission to have jurisdiction in multiple states is for the Federal Gov. to start an athletic commission, and that is NOT going to happen.

States want the right to allow/disallow events, not for the fed to tell them what is going to happen in their state!
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Old 06-30-2012, 09:18 AM   #5 (permalink)
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If the CSAC folds, that does not leave room for another to expand. Each state only has jurisdiction over their own state. The only way for a commission to have jurisdiction in multiple states is for the Federal Gov. to start an athletic commission, and that is NOT going to happen.

States want the right to allow/disallow events, not for the fed to tell them what is going to happen in their state!
Interesting. Does every state have its own comission? I always thought the NSAC regulated all events in the west and the CSAC did all the events in the east.
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Old 06-30-2012, 09:42 AM   #6 (permalink)
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Interesting. Does every state have its own comission? I always thought the NSAC regulated all events in the west and the CSAC did all the events in the east.
Every state has their own.

Zuffa helping in any way, form or fashion would be a very, very bad thing if you think about it, Major conflict of interest.


I read yesterday that the city of Stockton filed for bankruptcy, Shit is getting bad.
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Old 06-30-2012, 10:54 AM   #7 (permalink)
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Originally Posted by Hammerlock2.0 View Post
Interesting. Does every state have its own comission? I always thought the NSAC regulated all events in the west and the CSAC did all the events in the east.
Not every state has their own, there are some states with out commissions that do not allow MMA, but every state that allows it has their own type of commission.

NSAC = Nevada State Athletic Commission.
CSAC = California State Athletic Commission.

The reason you hear about the NSAC and CSAC the most is because most events happen in either Las Vegas, Nevada or in California.
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Old 06-30-2012, 11:43 AM   #8 (permalink)
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What I'm wondering is what are these crazy expenses they have that can rack up close to a million dollars in debt after all the fees they receive from dozens of events a year.

Seriously, it's just salaries for a handful of bureaucrats & refs, and a few physicals & drug tests. How does that add up to millions? Especially after most of those would generally be wrapped up in licensing fees and passed on to the sports franchises.

Let me guess, useless wasteful expenses like travel, research, paperwork etc. that have nothing to do with the commission's real purpose. Most of these govt. agencies are so full of bloat it's ridiculous.
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Old 06-30-2012, 12:13 PM   #9 (permalink)
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What a fascinating story and a civics lesson for all of us.

here's a letter to director Dodd from his boss, the director of consumer affairs.

Quote:
Dear Mr. Dodd
I am writing to you today to follow up on our meeting on May 23, 2012 and express my
concern with the Athletic Commission’s current fiscal condition. The recently revised
cash flow analysis (attached) indicates that the Athletic Commission Fund will become
insolvent as early as June of this fiscal year. As we discussed, this is not a matter of
sufficient appropriation authority but is instead a matter of sufficient cash in the fund that
would allow the Commission to continue operations.
Should the Commission’s fund become insolvent, all payments will cease, including
payments for imperative, day-to-day, operational expenses such as personal services,
rent, and enforcement efforts. Without the ability to pay for even basic services, the
Commission will have no choice but to cease operation immediately and cancel or
postpone indefinitely all Commission regulated events.
In the event the Commission does become insolvent, I feel compelled to direct you to
Section 32.00 (a) and (b) of the Governor’s 2011-12 Budget (Senate Bill 87 Chapter 33
Statutes of 2011) which states the following in pertinent part:
“(a) The officers of the various departments, boards, commissions, and
institutions, for whose benefit and support appropriations are made in
this act, are expressly forbidden to make any expenditures in excess of
these appropriations. Any indebtedness attempted to be created against
the state in violation of this section shall be null and void, and shall not
be allowed by the Controller nor paid out of any state appropriation.
(b) Any member of a department, board, commission, or institution who
shall vote for any expenditure, or create any indebtedness against the state in excess of the respective appropriations made by this act shall be
liable both personally and on his or her official bond for the amount of
the indebtedness, to be recovered in any court of competent jurisdiction
by the person or persons, firm, or corporation to which the indebtedness
is owing.
Commisioner Linda forster has already resigned to avoid personal liability I'll bet more follow her lead.

I can't wait to hjear what dana has to say about this
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Old 06-30-2012, 01:05 PM   #10 (permalink)
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Originally Posted by DanTheJu View Post
Not every state has their own, there are some states with out commissions that do not allow MMA, but every state that allows it has their own type of commission.

NSAC = Nevada State Athletic Commission.
CSAC = California State Athletic Commission.

The reason you hear about the NSAC and CSAC the most is because most events happen in either Las Vegas, Nevada or in California.
I know the acronyms.

What I didn't know is that the comissions were restricted to their own state. It is just like you say, I've never heard about any other comission so I thought they were the only ones and they would sort of share the country. I guess there's still stuff to learn.
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