The UFC is negotiating a new broadcast rights deal expected to be the most lucrative in its history, potentially seeking over $1 billion per year, as it considers various offers while prioritizing long-term growth and brand exposure over short-term financial gains.
The UFC is gearing up for what could be the most lucrative broadcast rights deal in its history by 2025. But are they really aiming for over $1 billion per year? That’s the big question. Mark Shapiro, TKO Group Holdings president and COO, tackled this during his chat at the Morgan Stanley Technology, Media and Telecom conference on Monday.
While it’s widely anticipated that the UFC will surpass their current ESPN deal from 2018, whispers of a massive increase have emerged as the new agreement looms in 2026. The original five-year contract with ESPN was valued at $1.5 billion, eventually extending to include pay-per-view broadcasts.
Shapiro shared some insights: “We’re not here to cause a stir or make anyone too excited or worried. It’s straightforward—we aim to maximize value.” He emphasized that while they feel undervalued due to market changes over seven years, there’s no need to read between the lines.
He added, “I’m not saying we’ll get double the amount; that’s just hearsay, not from us.” This notion of a potential billion-dollar deal likely stems from several factors. Sports rights packages remain a goldmine, especially with streaming giants like Netflix and Amazon entering the fray.
Take the NBA’s recent deal—$76 billion over 11 years, more than double its previous one. People see the UFC as hot property: young, diverse audience, year-round events, and global reach in 170 countries. The sky’s the limit—or maybe even outer space!
However, balancing this optimism is reality. Shapiro mentioned ESPN’s decisions with MLB and Formula-1 (though talks continue). Currently, UFC is in an exclusive negotiation window with ESPN until April 15. After that? The bidding war begins.
Shapiro knows offers will flood in but stresses long-term success over short-term gains. A flashy offer might seem tempting, but if it lacks ESPN’s exposure? Maybe not worth it. “Our job is to grow the brand,” he said. “We’re mainstream but still nascent compared to MLB or NFL.”
Ultimately, it’s about reach, engagement, and brand strength versus dollars. Some platforms may offer more money but aren’t the right fit. They must position themselves competitively for future deals—whether that’s in five or ten years when new leadership takes the helm.
In essence, it’s a balancing act: maximizing current opportunities while setting up for sustained growth and success down the road.