UFC is in for a substantial payday once it finalizes a new set of media rights deals.
The mixed martial arts circuit is in the final year of an exclusive media rights agreement with ESPN worth $300 million per year, and it’s looking to capitalize. For years, UFC executives have implied that the promotion would entertain bids from media companies outside the Worldwide Leader, likely splitting its inventory between multiple partners. And now that ESPN’s exclusive negotiating period with the circuit is up, that picture is coming into focus.
One prominent analyst recently suggested that UFC’s annual media rights revenue could increase to the high nine figures in its next set of deals. Robert Fishman of the media research firm MoffettNathanson predicted Monday that UFC will clear $900 million per year in its upcoming media rights agreements.
Fishman also suggests that the structure of UFC’s deals could look different. Notably, he indicates that the circuit may enter into a revenue-sharing agreement for its pay-per-view events with the media company that secures the premium inventory. “[UFC parent company] TKO also can be even more creative with its rights, including a possible PPV revenue share arrangement to share in potential upside rather than receiving a fixed rights fee, as the ESPN deal is currently constructed,” Fishman wrote, per Puck.
The MoffettNathanson analyst also predicted that the other half of UFC parent company TKO, WWE, could be looking to offload its premium events from Peacock to another streamer when that deal expires next year. Fishman tabs Netflix as the obvious landing spot, as the streamer already airs WWE’s Raw. Peacock may not have a ton of interest in renewing either, per Fishman, since it is about to start airing NBA games next season.
UFC is sure to have plenty of suitors as it shops its rights. ESPN is reportedly still interested. Netflix already has a relationship with UFC’s parent company, TKO, via its WWE deal. Warner Bros. Discovery may still be looking to bolster its live sports portfolio after losing the NBA. Amazon could certainly afford a package as well if it has interest.
A sensible split could see the promotion sell its pay-per-view inventory to one partner and its Fight Night inventory to another.
And to the advantage of UFC, it’s really the only major sports property on the market right now, with every other professional sports league already tied up for at least a few more years. That alone could help them reach the $900 million figure that Fishman is predicting.
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.