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UFC homeowners favor ESPN for brand new TV deal, however ‘3 totally different platforms’ already displaying curiosity

March 12, 2024
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The window for the UFC to ink a brand new broadcast rights deal formally opens in January 2025, however talks concerning the subsequent contract begin even sooner.

ESPN presently owns the rights to all UFC content material, together with pay-per-view broadcasts, after signing a seven-year cope with the promotion following a stint on FOX. The partnership between the UFC and ESPN has been profitable for each side, particularly for the expansion of ESPN+ because the streaming service has grown exponentially since turning into the first dwelling for the MMA group.

That stated, TKO Group Holdings president Mark Shapiro just lately revealed that a number of bidders have already inquired about retaining the printed fights for the UFC as soon as negotiations start later this yr.

“It’s our choice to remain at Disney, due to this historical past,” Shapiro stated on the Morgan Stanley Tech, Media and Telecom convention. “However we’ve had impromptu three totally different platforms inquire about that window that you simply’re speaking about and after we may be capable to sit down with them to debate transferring to a distinct platform, which we’ll do if we are able to’t get the appropriate deal.

“However the window opens in January. There’s no purpose we are able to’t begin speaking about it earlier.”

It’s not possible to know which three platforms that Shapiro is referencing, although quite a lot of streaming retailers have gotten extra concerned in dwell sports activities programming in recent times. Amazon’s Prime Video, for instance, paid $1 billion per yr to acquire the unique rights to the NFL’s Thursday night time soccer schedule. Apple shelled out $250 million per season to carry Main League Soccer to the platform.

Netflix, which has historically stayed away from dwell sports activities programming, has even reversed course with the upcoming Jake Paul-Mike Tyson boxing match, to not point out an enormous $5 billion deal to carry WWE’s flagship collection Monday Evening Uncooked to the streaming service for the following decade.

Shapiro by no means referenced Netflix by title when discussing the UFC, however he did speak concerning the community increasing into extra dwell occasion programming after signing the cope with WWE.

“It is a landmark deal,” Shapiro stated about WWE’s contract with Netflix. “That is an business altering deal. It is a transformative deal. It’s Netflix. [Netflix always said], ‘We’re not going to get into dwell sports activities,’ and though WWE is quasi-live sports activities, ‘We’re not going to get into it,’ and everyone was ready on when the code can be cracked, and we cracked the code.

“It’s $5 billion over 10 years, and it’s extremely seen income. It’s high-margin income. It’s locked in. It’s recurring. We’ve de-risked the entire merger with that alone. Netflix itself has bought unbelievable attain and scale globally, it’s a world deal. They’re a advertising and marketing powerhouse. Folks neglect that.”

With Netflix dabbling in fight sports activities for the upcoming struggle with Paul and Tyson, it’s solely doable that the UFC might be subsequent on the wishlist.

Nonetheless, Shapiro says that the UFC’s relationship stays sturdy at ESPN, particularly given the way in which that the 2 manufacturers have discovered actual synergy since first partnering.

“ESPN and Disney are the best companions you may ever have,” Shapiro stated. “If we are able to replicate that at Netflix [with WWE], we’re going to be golden. They get the game. They’re followers of the game. It was Bob Iger, frankly, that noticed the imaginative and prescient. It was his choice to go chew off all of the UFC, together with the pay-per-views, however [ESPN chairman] Jimmy Pitaro and Burke Magnus and [Rosalyn] Durant, who now runs programming, are big followers of the UFC and so they assist it in each approach.

“So social, SportsCenter protection, short-form content material, long-form content material, and so they work with us on scheduling about attempting to get us the perfect home windows. They need extra UFC, not much less. By the way in which, they’ve a reasonably crowded sheet of programming. Their schedule, their calendar is nip and tuck. What I might let you know is we love the advertising and marketing energy.”

Shapiro acknowledges that ESPN hasa lot on its plate within the coming months because the NBA additionally seeks out a brand new broadcast rights deal that’s anticipated to dwarf a earlier contract that was cut up throughout quite a few media companions. That might influence the UFC, relying on who finally ends up touchdown the NBA and the place one other outlet might immediately want extra content material.

“We’re curious what occurs with the NBA,” Shapiro stated. “That may have an effect on us. Are they getting extra content material? Are they getting much less content material?”

“I’m anxious to see the place this all goes. ESPN flagship, what occurs at ESPN+, clearly the cable bundle is totally imploding, ABC’s sort of had just a little resurgence proper now. So we’re going to work with them behind the scenes to determine what the following chapter of our partnership appears to be like like.”



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