The UFC is formally set to start negotiations on a brand new TV deal beginning in January with its present companions at ESPN sustaining a three-month unique window to carry onto the promotion.
On Tuesday, TKO Group Holdings president and chief working officer Mark Shapiro revealed the timeline for negotiations with plans to start talks with ESPN in early 2025. Shapiro made it clear that the UFC want to stick with ESPN after a profitable partnership that dates again practically seven years, which now consists of all occasions in addition to pay-per-views working on the Disney owned platform.
“Our window to barter is unique with ESPN/Disney from Jan. 15 to April 15,” Shapiro stated in the course of the Goldman Sachs Communacopia + Know-how Convention. “No formal conversations have began as of but and let me be clear, it’s our intention to re-sign with ESPN and Disney.
“As a result of they’ve proven that they do it greatest. They perceive synergy, they perceive advertising and marketing, They do an important job technologically with growing their platforms, participating their shoppers and naturally ESPN flagship, which is their direct-to-consumer [streaming platform] is on the way in which. So we’re anxious to see what that’s all about and the place we are able to slot in there.”
Shapiro additionally heaped reward on Disney CEO Bob Iger as a real champion of sports activities programming after they beforehand labored collectively when he was the vp of programming and manufacturing at ESPN.
“It’s uncommon when you’ve gotten a CEO of a significant media firm that will get granularly concerned, if you’ll, on all ranges of content material,” Shapiro stated. “That’s what Bob Iger does. On the finish of the day, he’s a sports activities freak. He now owns a girls’s soccer staff within the NWSL along with his spouse Willow. He got here up by means of ABC Sports activities, large boxing fan, and once I labored at ESPN, there wasn’t a Monday morning I didn’t get notes on sports activities content material for the weekend whereas he’s working Disney.
“These are the sorts of champions you need to be with. I believe people underestimate how a lot cash ESPN and Disney spend on a weekly foundation selling our UFC fights. We’re not wanting previous them. The dialog begins there.”
As a lot as Shapiro touted the present partnership between the UFC and ESPN with hopes that the 2 sides may attain an settlement on a brand new deal, it appears extremely unlikely {that a} contract finally ends up being finalized throughout that three-month negotiating window.
It’s virtually a part of the method for any sports activities league like UFC to simply accept provides from different potential broadcast companions to grasp the true worth of the rights deal.
With streaming shops like Netflix and Amazon in search of out increasingly dwell programming — with billions of {dollars} in capital to spend — it’s robust to think about the UFC received’t at the least see what choices can be found after April 15.
In reality, Shapiro stated there are already some shops who’ve expressed curiosity in speaking to the UFC a few new broadcast rights deal as soon as that unique negotiating window with ESPN ends.
“Having stated that — there’s so many different platforms which can be searching for premium sports activities content material and once more, the demand is outstripping provide,” Shapiro stated. “If we get out of that window, and we don’t have a deal, we’ll instantly take up with two or three platforms particularly which have informed us they’re anxious to have these conversations.
“I believe what stands out for us once more isn’t just the truth that we’ve a lot flexibility and management, possession, commissioner multi functional, we’re 12 months spherical, we’re the antidote for churn but in addition in the case of the UFC, it’s premium and never a lot quantity. That’s an enormous play there. If you wish to get quantity in a premium, the WWE is perhaps the play for you as a result of there’s so many occasions. However in the case of the UFC, you’ve received your 12 pay-per-views a 12 months and also you’ve received your — relying on the place we find yourself right here — your 30 to 40 [Fight Nights], which is each single week. You need to use them on no matter platform you need.”
Shapiro talked about particularly how a lot the UFC performed an element within the development of ESPN+ because the streaming service was first launching after brokering an unique deal to land the MMA promotion.
As a result of the UFC maintains such a loyal fanbase to not point out continued development 12 months after 12 months, Shapiro perceive the worth that the group brings to any potential broadcast companion.
“We’ve been the motive force of ESPN+,” Shapiro stated. “We’ll proceed to be versatile for our companions so long as they’re within the three issues we focus every day all the way in which all the way down to the supervisor degree at our firm, which is one, income development and profitability. Two, margin growth. Three, viewers and model development.
“That’s one thing we tutor, we mentor and we educate all the way in which all the way down to the supervisor degree. So people are fascinated with that as their mission once they go about their each day chores.”
One side that would draw loads of eyeballs with this subsequent TV deal is how the UFC approaches the way forward for pay-per-view.
Simply after placing a deal to maneuver to ESPN following a number of years with FOX, the UFC ended up prolonged its partnership with the sports-based outlet to incorporate pay-per-view broadcasts that now dwell completely on ESPN+. Moderately than playing on one pay-per-view card to the following in the case of total gross sales after which splitting these income with broadcast firms like in-Demand or DirecTV, the UFC now receives a set price from ESPN for every pay-per-view.
Shapiro stated when that deal was first brokered UFC CEO Dana White didn’t truly like the concept, however the longterm success has been plain.
“I’ll let you know once we did the PPV take care of ESPN, Dana White wasn’t fully on board with that,” Shapiro defined. “He loves being a promoter. He loves being the barker that he’s with fights. I’m certain you heard yesterday the way in which he talks about UFC 306 on the Sphere this weekend. There’s no higher promoter, no higher megaphone and he’s so passionate and he’s so genuine about it. The concept of shedding management of the PPV, if you’ll as a result of it was on in-Demand and DirecTV, wasn’t one thing he was actually up for.
“However he went alongside as a result of he’s an important teammate and it labored out. It labored out rather well. However the thought of us taking that again in home or splitting the package deal, the half-package, and promoting to anyone else, we’re up for all of it.”
Previously, Shapiro talked about that the UFC may doubtlessly even entertain eliminating pay-per-view broadcasts all collectively — for the appropriate value. There’s additionally an opportunity the UFC simply takes again management of the pay-per-views or simply sells the pay-per-views to a distinct companion as a very separate package deal from the remainder of the printed rights.
In different phrases, the UFC is open for enterprise.
“The concept of us taking [PPV’s] again in home or splitting the package deal, the half-package, and promoting to anyone else, we’re up for all of it,” Shapiro stated. “That’s the largest message that I may give to all of the bidders or potential suitors and IMG’s been phenomenal, in fact they promote our worldwide rights for UFC, in getting that message out. We’re right here to play.
“You may have a platform to construct, a platform the place you must improve penetration, you’ve gotten a platform the place you’re seeking to take up value, we’ll take it up through the use of the UFC and WWE as a result of we’ve a historical past of delivering.”
