The UFC is preparing for a potentially transformative year in 2025 with a new broadcast rights deal, remaining open to various business models and partners to maximize value while maintaining flexibility in negotiations.
The UFC is gearing up for what could be its most monumental year yet, with a fresh broadcast rights deal slated for 2025. Exciting times ahead!
Executives at TKO Group Holdings—UFC and WWE’s parent company—are keeping an open mind about future business partners. Yet, there’s a chance that not much will change once the new deal is inked. Mark Shapiro, TKO’s President and COO, has emphasized that everything’s on the table during negotiations. However, the current pay-per-view model still thrives.
“At the end of the day, it’s what the market will bear,” Shapiro said in a TKO earnings call. “We’re next up, the next big thing. Our track record speaks volumes. Our demographic? Insane! Half of our audience is aged 18-to-34, a prime target for most platforms. We’ve got terrific diversity and a strong Hispanic audience. Plus, we’re gender-neutral—not just women watching women’s fights.”
Pay-per-view remains robust. It’s been instrumental in building ESPN+ and works internationally too. DirecTV and DISH Network might merge soon—who knows what opportunities that could bring?
In past investor calls, Shapiro mentioned the possibility of the UFC’s PPV model fading away if terms with a broadcast partner are right. Take Netflix, for instance; they’re set to stream Jake Paul vs. Mike Tyson without extra costs to its 282 million subscribers.
WWE used to have a similar PPV format but switched gears with the WWE Network in 2014. Now, major events like WrestleMania air on Peacock as “premium live events,” included with a subscription.
While this model suits WWE, Shapiro can’t guarantee PPV will disappear for UFC. The decision hinges on what broadcast partners want when talks kick off in early 2025.
“Things evolve,” Shapiro remarked. “Broadcast is making a comeback; cable faces challenges but isn’t obsolete. Streaming’s booming, with new platforms emerging constantly.”
Shapiro highlighted their adaptability: “We’re open to various business models. Ari and I are actively discussing these potential models with partners.”
The UFC signed with ESPN in 2018—a five-year deal that extended to seven years, with Disney taking over PPV broadcasts. Now, major UFC events are sold exclusively through ESPN+, unlike before when they were available via traditional PPV outlets.
ESPN holds an exclusive negotiation window for a new deal with UFC, though it’s unlikely they’ll finalize anything before exploring offers from other suitors. Shapiro stressed maximizing value in upcoming negotiations.
Simply put, if someone’s ready to pay up, UFC’s all ears.
“Maximizing value is key,” Shapiro stated. “We’re not changing for change’s sake; we’re focused on maximizing our rights. UFC remains incredibly popular compared to other leagues facing challenges.”
Shapiro added, “We’ll get creative if needed to attract partners or suitors offering higher prices or meeting street expectations on renewals.” The message is clear: they’re signaling shareholders and media suitors alike.