The UFC is embarking on arguably an important 12 months within the firm’s historical past with negotiations about to start on a brand new broadcast rights deal.
The promotion’s present unique rights are with ESPN for tv, streaming and pay-per-view.
It’s lengthy been anticipated that the UFC would search an enormous improve from its earlier broadcast fights take care of Bloomberg reporting that the combined martial arts outfit is looking for greater than $1 billion per 12 months, which is greater than double what ESPN at present pays. MMA Preventing has beforehand reported that the UFC was anticipated to hunt a big improve within the new broadcast rights deal for quite a few causes — not the least of which is the UFC is the one main sports activities property with a TV deal coming due for the subsequent three years.
The UFC, and by extension the promotion’s homeowners at TKO Group Holdings, don’t tackle particulars concerning the broadcast rights deal publicly however negotiations with ESPN are anticipated to start subsequent week with an unique negotiating window working by way of April 15.
Following that date, the UFC can start fielding provides from different potential suitors.
Whereas TKO and UFC executives have repeatedly heaped reward on ESPN as a enterprise companion, it’s inconceivable to disclaim potential curiosity from quite a few different broadcast entities, which now contains main streaming companies reminiscent of Netflix and Amazon.
“Discussions round our upcoming US home rights renewal haven’t but begun, and as such we’ve got shared no expectations relating to value,” UFC officers informed Bloomberg in a press release. “We’re in an unique negotiating window with ESPN by way of mid-April 2025, and stay up for productive negotiations when the time comes.”
ESPN at present pays roughly $450 million per 12 months to the UFC, which incorporates charges to broadcast pay-per-views solely by way of the ESPN+ streaming service.
It’s solely potential that the subsequent UFC broadcast deal finally ends up being break up up between a number of companions, which has similarities to different main sports activities leagues just like the NFL and NBA. That mentioned, the underside line virtually all the time comes all the way down to cash so it all the time is determined by what a selected outlet is keen to pay and that seemingly determines if the UFC indicators with one community or a number of.
There are reportedly a number of main consumers fascinated about acquiring the UFC’s broadcast rights together with Amazon, Netflix, Warner Bros. Discovery, YouTube and clearly ESPN.
Netflix just lately inked a 10-year, $5 billion deal to land the published fights for WWE’s flagship present Monday Evening Uncooked, and it’s no coincidence that WWE is a part of the identical firm with UFC.
TKO CEO Ari Emanuel and TKO president Mark Shapiro are anticipated to steer the negotiations on the UFC’s new broadcast deal. It’s unlikely a call is made on a brand new deal till after April 15 when the UFC is free to discipline provides from different potential companions after ESPN’s unique negotiating window closes.
“We’re going to maximise value for our shareholders and we’re going to maximise model and attain potential for our personal properties,” Shapiro mentioned concerning the new broadcast rights deal in December. “Which means virtually as a lot as value. I can’t say sufficient and I’ve mentioned advert nauseum about ESPN and Disney and the best way they’ve supported and grown and marketed and simply creatively gotten behind the UFC. Simply been a unprecedented companion and FOX, by the best way, was a unprecedented companion earlier than that. However ESPN simply has a lot attain and the CEO of Disney, Bob Iger, got here up in sports activities so he will get it. He will get the storytelling, he will get the attain, he will get engagement. [ESPN chairman] Jimmy Pitaro’s been an outstanding companion.
“So we’ll be seeking to maximize value and we’ll be seeking to additionally do what’s proper for the well being of our model. If meaning splitting up the packages or creating new packages, or probably including fights and dates, we’re keen to do the entire above.”
