What’s Next For UFC’s Broadcasting Deal?

The UFC’s broadcasting deal with ESPN is almost over, so what is next for them?

The UFC signed their EPSN deal in 2018, which was worth approximately $1.5 billion. The network has a three-month exclusive period, which runs out after March, to agree on a new deal. If they do not do so, the UFC is free to speak with other competitors. Reports indicate that the UFC wants a bigger slice of the pie. The UFC has become much bigger than their 2018 deal, with rumors they want a deal worth $1 billion per year. That would be over two times more than their ESPN deal worth $450 million.

Shapiro Reacts

Other sports have shown they can secure big contracts. The NBA has signed an 11-year deal with NBC and Amazon worth $76 billion. That was more than double their prior deal worth $24 billion. ESPN also faces major questions over their next move, as it has not agreed a new deal for Formula 1. Meanwhile, TKO has also entered into boxing following their new venture with the Saudis. Mark Shapiro, the TKO Group Holdings Inc. President and CEO, wants what is best for the UFC. That could mean working with multiple networks to secure the most amount of money, which could then be reinvested back into the sport. 

“All I would say on this — this isn’t so folks can get hot under the collar or get cold or take it as ‘he’s encouraged, he’s optimistic, but he’s not bullish.’ We don’t have to read between the lines here. It’s simple. Of course, we’re going to maximize value. Of course, we think we’re undervalued — not because we did a bad deal — because seven years is a long time and the decks shuffle. But I think, name your analyst, there’s a lot out there. “I’m not saying we’re not going to get two-times [as much], whatever it might be, that’s generally just word of mouth. That’s not coming from the company,” Shapiro said

Options

Nevertheless, Shapiro has previously said that he would like to stay with ESPN. It is not clear if that is still the case, given what other promotions have done. WWE, which merged with the UFC under TKO Group Holdings Inc., recently signed a ten-year deal with Netflix. The deal was worth $5 billion to air Monday Night RAW. That has opened the possibility for the UFC to follow something similar. The UFC could command more since it has a bigger viewership across the globe. Either way, the focus was on growing the UFC. 

“Our job is to grow the brand. This is a nascent sport, it’s mainstream now but it’s nascent. It’s early days. It’s turned into a major but when you compare it to MLB, which has been around for 100 years, an NFL, which has been around 100 years, we have a long way to go here. So we have to gauge reach, engagement, brand strength with dollars. We’re playing the long game here. That’s how we kind of size up our negotiations and the different suitors that are out there,” Shapiro added