The UFC is now officially open to receiving offers from various broadcast networks and streaming services after the exclusive negotiation period with ESPN concluded on Tuesday.
While a new agreement between UFC and ESPN before April 15th was considered unlikely due to the competitive nature of broadcast rights deals, their partnership has been successful for the past seven years. However, reports indicate the UFC is seeking over $1 billion annually for its new broadcast rights, a significant jump from the current $300 million per year paid by ESPN.
The ultimate outcome remains uncertain, but ESPN chairman Jimmy Pitaro has stated he is not worried about failing to finalize a deal with the UFC before other networks and streaming platforms can place their bids.
“The exclusive negotiation window is ending soon, but don’t read too much into that,” Pitaro told Sports Business Journal. “We aren’t overly concerned about this specific timeframe.”
“We are aware of the strong interest in the UFC, which is positive for the sport and for them. We also remain interested in finding a solution with them.”
The evolving landscape of broadcast rights agreements puts the UFC in a strong negotiating position as their contract with ESPN nears its end in 2025.
No other major sports property was available until 2028, until ESPN ended its agreement with Major League Baseball in February, also setting that deal to conclude in 2025. The UFC remains a highly attractive and profitable property, especially because it holds events throughout the year, unlike baseball and most other professional sports with seasonal schedules.
This year-round schedule is a factor that previously deterred Netflix from bidding on sports broadcast rights, but it is not a concern for the UFC.
Initially a five-year deal, later extended to seven years with the addition of pay-per-view exclusivity, Pitaro praised the working relationship with the UFC. However, he refrained from predicting the outcome of the ongoing negotiations.
“UFC has been very beneficial for ESPN,” Pitaro said. “We launched ESPN+ in April 2018, and UFC was the premier content for ESPN+ at its launch. Even today, it remains the flagship property for ESPN+.”
“We also believe we have been an excellent partner to the UFC through our promotion and commitment to mixed martial arts and the UFC across our studio programming, website, and the ESPN app.”
Despite Pitaro`s positive description of the ESPN-UFC partnership, there have been some turbulent periods. Notably, the UFC 313 broadcast experienced significant issues, with fans and fighters expressing frustration over the inability to purchase or watch the pay-per-view. Following this, sources informed MMA Fighting that UFC executives were “furious” about the technical problems, and it wasn`t an isolated incident.
It is still unclear how the situation will develop, but serious discussions about the UFC`s future broadcast home are set to begin on Tuesday after the exclusive negotiation window with ESPN closes.
