Perhaps the most surprising media rights deal of the year came last month when the UFC and Paramount agreed to a 7-year, $7.7 billion deal that will see many live numbered events air on CBS.
The conventional wisdom among industry observers at the time was that UFC would split its rights between several different companies. Perhaps one platform for the numbered events and another for Fight Nights. Paramount was rarely, if ever, mentioned. ESPN, Netflix, Amazon, and others, however, were rumored to be the front-runners.
But with Paramount’s new ownership looking to make a splash, the price was right for UFC to take the deal. And for ESPN chairman Jimmy Pitaro, who was interested in staying in the ring with UFC, being outbid by Paramount is simply part of the game.
“We can’t have everything. We have to make tough decisions, and that was a tough one. But more power to [UFC parent] TKO in terms of getting that done. We do have a great relationship with them which led to us getting the rights to WWE,” the ESPN chairman said during an Axios conference on Thursday.
However, similar to the rest of the industry, Pitaro was “surprised” that Parmount won the rights, suggesting that exposure on a broadcast network like CBS will be a boon for UFC.
“I was surprised. But TKO did a fantastic job with that. I’m sure Paramount did their own diligence and they made a decision. I think it’s great for the UFC to have broadcast exposure,” he said.
No doubt, UFC would’ve been a great property for ESPN to hold onto, especially as it looks to bolster programming for its new direct-to-consumer app. But the network has also shown quite a bit of restraint during media rights negotiations recently. ESPN held firm on its price with Formula One, which is looking all but certain to move to Apple. The network also opted out of its MLB deal earlier this year and is looking likely to re-sign a new one for different inventory it prefers to Sunday Night Baseball.
For ESPN, UFC qualifies as “nice to have” rather than “have to have.” And when a company like Paramount comes and offers over $1 billion per year for the MMA circuit, it probably makes Pitaro’s decision to back off a bit easier.
About Drew Lerner
Drew Lerner is a staff writer for Awful Announcing and an aspiring cable subscriber. He previously covered sports media for Sports Media Watch. Future beat writer for the Oasis reunion tour.