The UFC is ready to embark on probably the most important 12 months within the historical past of the promotion with a brand new broadcast rights deal arriving in 2025.
Whereas executives at TKO Group Holdings—the mixed father or mother firm to UFC and WWE—stay versatile when addressing any potential enterprise companions transferring ahead, it’s additionally doable that nothing a lot adjustments when a brand new deal is struck. TKO President and Chief Working Officer Mark Shapiro has acknowledged that nothing is off the desk when it comes time to barter a brand new UFC broadcast rights deal, however that the present manner main occasions are bought as pay-per-views continues to work effectively.
“What I can inform you as we enter into these negotiations, on the finish of the day it’s what the market will bear,” Shapiro mentioned throughout a TKO earnings name on Wednesday. “That’s actually what it’s. We’re subsequent up. We’re the following huge factor on the block, if you’ll, We’ve got a confirmed observe report. Our demos are insane, actually simply throughout TKO. Fifty p.c of our viewers is 18-to-34 [year olds], which is what most platforms and firms are chasing. So we’re in good stead there. We’ve got terrific versification and we drive a really sturdy Hispanic viewers on the subject of the UFC and we’re gender impartial. We’re not simply speaking about girls watching girls’s fights. That’s not the case. We’ve got a powerful base of girls watching all our fights. So we’re sitting at a fairly good place.
“Pay-per-view continues to be a powerful mannequin. It labored to construct ESPN+. It’s labored for us internationally. We’ve acquired nice historical past with it. DirecTV and DISH [Network] could also be coming collectively. So who is aware of the form of alternative there.”
Throughout previous calls with buyers, Shapiro has mentioned that there was a world the place the UFC’s PPV mannequin might probably go away underneath the correct phrases with a broadcast companion. As an example, Netflix is about to broadcast the upcoming Jake Paul vs. Mike Tyson combat to its 282 million subscribers with none further value connected to look at the occasion.
In the meantime, WWE used to function underneath an analogous format as UFC with month-to-month PPV occasions however that mannequin modified with the launch of the WWE Community in 2014. Now main WWE occasions akin to WrestleMania or SummerSlam are thought of “premium reside occasions” which might be presently broadcast on Peacock—one of many promotion’s broadcast companions—at no further value exterior of paying for a subscription to the streaming service.
As a lot as that works for WWE, Shapiro can’t say for sure if PPV is ever going away for UFC. That call depends upon what a broadcast companion desires when negotiations begin in early 2025.
“Issues change. Fashions change. Viewing patterns change,” Shapiro mentioned. “Broadcast is now form of again in if you’ll, cable is clearly having its struggles however nonetheless nothing to frown at. Streaming is on hearth and new platforms and quick channels are coming on a regular basis.
“So it’s actually simply demonstrating and signaling to the market that we’ve flexibility and a willingness to play ball on a myriad of enterprise fashions. Ari and I specifically are very targeted on not simply speaking that however actively discussing these potential fashions with all the companions after which some.”
When the UFC initially signed with ESPN in 2018, a five-year deal finally became a seven-year partnership with the Disney-owned firm additionally taking up PPV broadcasts. Now all the main UFC occasions are bought completely by means of ESPN+ quite than the earlier mannequin the place those self same occasions can be out there by means of conventional PPV shops like inDemand.
Because the UFC’s present broadcast companion, ESPN maintains an unique negotiating interval to achieve phrases on a brand new deal, though it’s extremely unlikely the 2 sides strike a discount earlier than Dana White’s MMA group no less than fields affords from different potential suitors. Shapiro made it clear the UFC desires to maximise its worth in these subsequent negotiations with potential companions.
In different phrases, if any individual is keen to pay, the UFC is keen to hear.
“When it comes to what actually advantages us and our shareholders is maximizing worth on these renewals,” Shapiro mentioned. “That’s the underside line. We’re not seeking to upend or change for change sake or unorthodox fashions, we wish to maximize our rights. Finish of story. UFC is mainstream, extremely fashionable. I see among the struggles occurring with different leagues proper now, each linear and digital. Leagues which have began new seasons and so they’re not off to a rocket begin like we’re accustomed to. That’s not the case with UFC. We’re nonetheless driving [subscriptions] to ESPN+. Once we’re on ESPN, ESPN2 or ABC, we’re a scores winner and driving extra promoting for these platforms.
“If we’ve to be artistic to assist potential companions or carry different suitors within the door in order that we get the next value or reside as much as the information that the road has been giving us on the renewal — not the one which we’re giving them however the one their giving us — then we’re going to do it. All we’re attempting to sign to our shareholders and all we’re attempting to sign to the media suitors, the platforms, the businesses which might be going to be chasing us comparatively quickly.”
