UFC is anticipating its most profitable broadcast rights agreement in history in 2025. The question arises whether the organization is indeed aiming for over $1 billion per year in these negotiations.
Mark Shapiro, president and COO of TKO Group Holdings, addressed this during a conference. While it’s widely expected that the UFC’s new deal will surpass the current agreement with ESPN from 2018, reports have suggested a significant increase when the new contract begins in 2026.
The initial five-year contract with ESPN was valued at $1.5 billion, with a subsequent two-year extension and the inclusion of pay-per-view broadcasts.
Shapiro stated that they will naturally seek to maximize value and believe they are currently undervalued due to market changes over the past seven years. He acknowledged speculations of doubling their rights fees but clarified that these figures are not company-sourced.
Several factors contribute to the perception that the UFC’s broadcast rights could be worth such a substantial amount.
Sports rights remain highly valuable, especially with streaming platforms like Netflix and Amazon Prime Video entering the bidding. The NBA’s recent deal, starting in 2025, is worth $76 billion over 11 years, more than double its previous $24 billion agreement over nine years.
Shapiro pointed out the UFC’s appeal due to its continuous year-round schedule, global growth, young and diverse audience, and presence in 170 countries with expansion opportunities in Europe, Latin America, Asia-Pacific, and the Middle East and North Africa. He notes that observers see limitless potential for UFC growth.
He also mentioned awareness of deals in MLB and F1 as context. Shapiro emphasized that it’s still early in the negotiation process. He valued their relationship with ESPN and Disney, recognizing their contribution to UFC’s success and growth. They are currently in an exclusive negotiation period with ESPN, seeking a renewal, but the outcome remains uncertain.
Shapiro referenced ESPN’s decision to opt out of its MLB broadcast deal and not renew its Formula 1 deal as examples of the current media rights landscape.
The UFC’s exclusive negotiation window with ESPN lasts until April 15. After this, they can receive offers from other potential partners.
Shapiro is aware of likely numerous offers for UFC broadcast rights but stressed the importance of long-term brand growth over short-term financial gains.
He explained that while a streaming service might offer a higher price, the exposure provided by ESPN might be more valuable for brand development.
“Our job is to grow the brand,” Shapiro said, emphasizing the nascent stage of MMA despite its mainstream status. He highlighted the need to balance reach, engagement, and brand strength with financial considerations, focusing on long-term strategy.
Shapiro concluded that they are playing the long game, aiming to position the UFC for continued success in future broadcast deals, even beyond the current leadership.
