The UFC is set to begin exclusive negotiations with ESPN for a new TV deal starting in January, with hopes of continuing their successful partnership, but is open to exploring other broadcasting options if an agreement isn’t reached within the three-month window.
The UFC is gearing up to negotiate a new TV deal starting in January. ESPN will have a three-month exclusive window to retain the promotion.
On Tuesday, TKO Group Holdings president Mark Shapiro shared the timeline for these talks. Negotiations with ESPN are set to begin in early 2025.
“Our window to negotiate is exclusive with ESPN/Disney from Jan. 15 to April 15,” Shapiro said during the Goldman Sachs Communacopia + Technology Conference. “No formal conversations have started as of yet and let me be clear, it is our intention to re-sign with ESPN and Disney.
“Because they’ve shown that they do it best. They understand synergy, they understand marketing, They do a great job technologically with developing their platforms, engaging their consumers and of course ESPN flagship, which is their direct-to-consumer [streaming platform] is on the way. So we’re anxious to see what that’s all about and where we can fit in there.”
Shapiro also praised Disney CEO Bob Iger for his dedication to sports programming. They previously worked together when Shapiro was at ESPN.
“It’s rare when you have a CEO of a major media company that gets granularly involved, if you will, on all levels of content,” Shapiro said. “That’s what Bob Iger does. At the end of the day, he’s a sports freak. He now owns a women’s soccer team in the NWSL with his wife Willow. He came up through ABC Sports, huge boxing fan, and when I worked at ESPN, there wasn’t a Monday morning I didn’t get notes on sports content for the weekend while he’s running Disney.
“Those are the kinds of champions you want to be with. I think folks underestimate how much money ESPN and Disney spend on a weekly basis promoting our UFC fights. We’re not looking past them. The conversation starts there.”
Despite Shapiro’s optimism about renewing with ESPN, finalizing a contract within the three-month window seems unlikely.
It’s common for sports leagues like UFC to entertain offers from other broadcasters to gauge the true value of their rights deal.
With streaming giants like Netflix and Amazon eyeing live programming opportunities, it’s hard to imagine UFC won’t explore options post-April 15.
In fact, Shapiro mentioned some outlets have already expressed interest in talking once the exclusive window ends.
“Having said that — there’s so many other platforms that are looking for premium sports content and again, the demand is outstripping supply,” Shapiro said. “If we get out of that window, and we don’t have a deal, we will immediately take up with two or three platforms specifically that have told us they’re anxious to have those conversations.
“I think what stands out for us again is not just the fact that we have so much flexibility and control, ownership, commissioner all in one, we’re year round, we’re the antidote for churn but also when it comes to the UFC, it’s premium and not so much volume. That’s a big play there. If you want to get volume in a premium, the WWE might be the play for you because there’s so many events. But when it comes to the UFC, you’ve got your 12 pay-per-views a year and you’ve got your — depending on where we end up here — your 30 to 40 [Fight Nights], which is every single week. You can use them on whatever platform you want.”
Shapiro highlighted UFC’s role in boosting ESPN+ during its launch phase through an exclusive deal.
Given UFC’s loyal fanbase and consistent growth, Shapiro recognizes its value to any broadcaster.
“We’ve been the driver of ESPN+,” Shapiro said. “We will continue to be flexible for our partners as long as they are interested in the three things we focus on a daily basis all the way down to the manager level at our company, which is one, revenue growth and profitability. Two, margin expansion. Three, audience and brand growth.
“That is something we tutor, we mentor and we educate all the way down to the manager level. So folks are thinking about that as their mission when they go about their daily chores.”
A key aspect of this new TV deal could be how UFC handles future pay-per-view events.
After partnering with ESPN post-FOX era, UFC extended its agreement to include pay-per-view broadcasts exclusively on ESPN+. This move guaranteed set fees from ESPN rather than relying on fluctuating sales figures split with other companies like DirecTV.
Initially hesitant about this arrangement, UFC CEO Dana White has since seen its undeniable success.
“I will tell you when we did the PPV deal with ESPN, Dana White wasn’t completely on board with that,” Shapiro explained. “He loves being a promoter. He loves being the barker that he is with fights. I’m sure you heard yesterday the way he talks about UFC 306 at the Sphere this weekend. There’s no better promoter, no better megaphone and he’s so passionate and he’s so authentic about it. The idea of losing control of the PPV, if you will because it was on in-Demand and DirecTV, wasn’t something he was really up for.
“But he went along because he’s a great teammate and it worked out. It worked out really well. But the idea of us taking that back in house or splitting the package, the half-package, and selling to somebody else, we’re up for all of it.”
Shapiro mentioned eliminating pay-per-view broadcasts altogether could be an option — for the right price.
Alternatively, UFC might regain control over pay-per-views or sell them separately from other broadcast rights packages.
In essence: UFC is open for business.
“The idea of us taking [PPV’s] back in house or splitting the package, the half-package, and selling to somebody else, we’re up for all of it,” Shapiro said. “That’s the biggest message that I can give to all bidders or potential suitors and IMG’s been phenomenal — they sell our international rights — in getting that message out. We’re here to play.”