WBC Examination of Proposed New USA Boxing Law

Pros and Cons of Proposed “Muhammad Ali American Boxing Revival Act”

The following paper is designed to be an educational guide for further discussion regarding the Bill which has been introduced to the Congress in an attempt to amend the “Professional Boxing Safety Act of 1996” a/k/a “Muhammad Ali Boxing Reform Act” (2000).

CONSIDERATIONS:

Boxing is divided in two formats, amateur (Olympic-style) and professional; the following considerations are solely regarding professional boxing.

• Boxing is a contact sport that is regulated by governmental entities in most countries.  In the USA, states and some Native American governments have established boxing / athletic commissions that are responsible for regulating any boxing activity.

• Boxing governing bodies or “sanctioning organizations” are independent, international non-profit entities which, among other activities, rank boxers and sanction championship bouts, awarding title belts to the winners, under their own discretion and bylaws.

• Boxing is one of the very few sports – perhaps the only professional sport – in which the governing organizations and commission regulators have absolutely nothing to do with the business side of the sport.

• The boxing business is controlled by promotional companies; these promoters engage the boxers’ services and arrange the boxing events and matches, often for the sanctioning bodies’ championships or other privileges such as mandatory positions.  These promoters deal with the television / streaming networks, arenas for ticket sales, line up sponsors, and create other means for revenue.

• Boxers are independent contractors, who in most cases come from humble beginnings and rely on the advice of their trainers, managers, and advisors to guide their careers.

USA Boxing Regulations History – facts:

• Boxing carries a burden of being labeled as a sport which was linked to and controlled by organized crime in the 1930’s, 40’s, and into the 50´s.

• In 1955, the U.S. Supreme Court ruled, in United States v. International Boxing Club of New York, that boxing could not be ruled by a monopoly, empowering the government to break the monopoly that controlled boxers and boxing, opening the door to change.

• U.S. state commissions asserted more authority, and world sanctioning / governing bodies independent of promoters arose in the early 1960’s, with the National Boxing Association becoming the WBA in 1962.  U.S. and other Commissioners and officials seeking greater reform immediately founded the WBC in February 1963.  The IBF was formed in 1983 after members of the WBA left, and same scenario brought the creation of the WBO in 1988.

• The administration of the sport in the USA by state commissions and world governing bodies, and the resulting implementation of a variety of rules and reforms, then served to bring greater transparency, and reduce the exploitation of boxers.

• Seeking greater protections for the boxer, prominent U.S. politicians such as Senators McCain and Reid, the 1990’s saw the enactment of the “Professional Boxing Safety Act of 1996”, followed by amendments that resulted in the “Muhammad Ali Boxing Reform Act” (2000), which is current U.S. federal law.

• In July 2025 a proposed new bill has been introduced in Congress called “Muhammad Ali American Boxing Revival Act”, which would amend the existing statute to permit an exception, under conditions, to the current law.

Principal Features of the Existing Law (Muhammad Ali Boxing Reform Act):

• Its goal is the absolute protection of boxers´ rights, to provide them the best conditions to protect their financial condition and working conditions.

• The law requires that promotional companies (Promoters) disclose all financial information and results of every event.

• Promoters are required to produce extensive documentation, a material burden of disclosure, to comply with the existing law.

• To prevent real or possible Conflicts of Interest that might compromise boxers’ rights:
  • Promoters are banned from managing boxers or having control over their managers.
  • State Commissioners may not have any interest in boxers, and can no longer belong to any independent world governing body.
  • Governing bodies must comply with the Act’s disclosure requirements, including reporting all ranking movement of covered boxers.
  • Governing bodies must disclose sanction fees or any other compensation of value received relating to sanctioned bouts.
  • Governing bodies and officers may not receive any item of value other than published sanction fees, to avoid corruption.

Principal Effects that the Muhammad Ali Boxing Reform Act brought to Boxing:

• Boxers (as well as the public) receive disclosure of the economics of the boxing events in which they participate.

• As a result, through informed negotiation, boxers’ share of boxing events is calculated to average approximately 80%, while the promoters receive only 20%.

• Unfortunately, while in prior years U.S. state commissioners were deeply involved in the sanctioning / governing bodies, and able to oversee and assist in reforms, the prohibition on their membership works against the unity of the sport, limiting the growth and implementation of new rules and innovations in U.S. boxing.

• The Muhammad Ali Boxing Reform Act only applies to boxing.  Other combat sports, especially MMA, are not included.  This has resulted in the creation of business models in which MMA promoters have greater advantages over boxing promoters and MMA athletes not having the protection of the Ali Reform Act law.

CONSIDERATIONS ABOUT MIXED MARTIAL ARTS:

• MMA is a terminology to refer to the sport of mixed martial arts.

• As with boxing, there are promotional companies that promote MMA.

• MMA promoters are financially successful using the business model in which they, as Promoter, also functions as sanctioning / governing body, controls the fighter’s ratings and championships, sets matchmaking (which also controls which fighters receive title opportunities), and controls every aspect of the business’s economics such as TV and streaming contracts, sponsors, ticket sales and other forms of revenue).

• As noted, MMA is not subject to the requirements of the law of the Muhammad Ali Boxing Reform Act.

Principal features of the Proposed Law, dubbed the “Muhammad Ali American Boxing Revival Act”

The principal feature is that the proposed amendment permits a promoter to create an entity that acts as both promoter and governing body in boxing, called a “Unified Boxing Organization”, which is the existing model in MMA, basically becoming a closed universe controlling all aspects of both the sport administration and the business side of it.

It is an addition to the existing law, as long as the UBO complies with its regulations there is no infraction of the Muhammad Ali Boxing Reform Act.

While non-UBO, traditional promoters will continue to have to comply with all the financial disclosures and other reporting requirements of the Muhammad Ali Reform Act, UBOs will not be subjected to those compliance requirements.

It codifies current practices in boxing, such that boxers will have guaranteed injury insurance and minimum $150 per round purses, medical examinations, and provides certain additional benefits such as access to a training facility and medical staff.

While such limited additional benefits are required in a UBO, certain commentators have expressed concern that in such a closed system boxers, like MMA fighters, will eventually not have the opportunity to grow their earnings financially, unlike the current boxing industry, where boxers receive most of the economics of any promotion.

In Closing 

The WBC has always supported any changes and improvements to the sport, has worked with new promoters and networks, and has welcomed proposed new formats and concepts that have a benefit to the sport, but most importantly for boxers and the industry in general.

The WBC’s founding principle has been the advancement and protection of boxers, ensuring them the right to earn championship opportunities and receive fair compensation for the effort and risk they take for themselves and their families.  The WBC and the boxing industry will continue to follow developments as the law comes before the U.S. Congress for examination in the coming months.