Reports suggest the UFC is looking for a broadcast rights deal worth at least $1 billion annually, but executives emphasize that financial terms are not the sole consideration in their decision-making process as their current contract with ESPN ends in 2025.
Mark Shapiro, President and COO of TKO Group Holdings, confirmed the ongoing negotiations and stated the company is actively engaged in discussions with numerous potential broadcast and streaming partners interested in obtaining the rights package.
Although an exclusive negotiation period with ESPN concluded in April without a new agreement, Shapiro noted that conversations with the Disney-owned network are continuing alongside outreach to other interested parties.
“We`re not turning our backs on ESPN, but we want to have multiple conversations and make a smart, strategic decision that works best for our long term,” Shapiro explained. He stressed, “The long term is not just the money.”
While acknowledging the importance of revenue for shareholders, Shapiro also highlighted crucial strategic factors: “What`s best for our brand? Who`s going to be our best marketing partner? Who`s going to continue to drive what is still a nascent sport when you compare to leagues like NFL and Major League Baseball, who have been around for 100 years?”
A significant benefit of the UFC`s partnership with ESPN has been the increased legitimacy and mainstream exposure gained by airing on a major sports network in the United States.
Frequent appearances by UFC athletes on ESPN programming outside of events have helped position the promotion alongside established major sports leagues like the NFL and NBA.
Shapiro acknowledged that numerous factors will influence the final decision regarding the next broadcast rights agreement.
“We`re in a window and we`re in multiple conversations,” Shapiro stated, noting that “Demand is strong.” He added, “But we want to be thoughtful and strategic about who we sign up with. When we signed on the dotted line to go 10 years with Netflix [for WWE], you`re making a bet. They`re making a bet on you but you`re making an equal bet on them.”
He elaborated on the complex considerations for the UFC rights: “It goes every which way as it relates to these UFC rights. Who`s going to be around? Who`s going to stick around? Who`s got a long-term strategy? Who`s going to be good in just the short term? Can you divide it up into multiple packages and have your cake and eat it, too? What`s the future of pay-per-view? Do you need pay-per-view? This is all stuff we`re analyzing and having conversations on.”
Shapiro also highlighted several advantages the UFC possesses compared to other sports properties, such as its centralized leadership structure allowing for faster decision-making by a few key executives rather than a large committee of owners voting on proposals.
He listed specific benefits: “There`s a lot of opportunity. We`re year round, most aren`t. We`re global, most aren`t. We don`t have an owner`s committee, most do. We incentivize our fighters to be a part of the team, frankly, and we`re finding new ways for them to cash in beyond just winning in the octagon. The platforms recognize that. We`re young, we`re diverse, just a lot of upside.”
Another significant advantage for the UFC is being one of the few major sports rights packages available in the near future, potentially driving up bids as competitors won`t have other major options until 2028.
Shapiro specifically noted ESPN`s upcoming standalone streaming service launch later this year with a reported starting price of $29.99, and explained that premium content, like the UFC, is essential for attracting and retaining subscribers.
The UFC previously helped drive subscriptions to ESPN+ through its exclusive seven-year deal covering all programming, including pay-per-views.
“I have never seen the sports media rights environment this hot,” Shapiro commented, adding, “There will be periods where it cools off a little and as I mentioned, warm versus hot but it`s never going cold. That`s just not happening. Because it`s a proven winner. Once again, antidote to churn and at the same time a proven formula for subscriber acquisition.”
Referencing ESPN`s announced $29.99 streaming service, he emphasized the need for premium content for both direct-to-consumer and linear platforms. “Demand is outstripping supply, and particularly with regards to sports rights, there`s no major properties outside of the UFC and WWE [premium live events] that is up for renewal until 2028,” he stated.
Shapiro clearly believes the UFC holds a strong negotiating position, which likely explains the extensive due diligence and broad discussions with multiple potential partners before finalizing a new broadcast deal.
“We`re sitting in a very unique spot,” Shapiro concluded, asserting that the demand will remain strong due to the sport`s inherent appeal: “it`s a built in rooting interest, it`s live, it`s sharable, the highlights are snackable.”
