While reports indicate the UFC is targeting at least $1 billion per year for its upcoming broadcast rights agreement, set to replace the current ESPN deal expiring at the close of 2025, the financial figure is not the sole consideration driving the decision. This perspective comes from Mark Shapiro, President and Chief Operating Officer of TKO Group Holdings, the parent company of UFC and WWE.
Speaking recently, Shapiro confirmed that TKO is engaged in discussions with multiple potential partners, including various networks and streaming platforms interested in acquiring the rights package. Although the exclusive negotiation period with ESPN concluded in April without a new contract, conversations with the Disney-owned network are ongoing alongside outreach to other interested parties.
Shapiro emphasized the need for a smart, strategic decision focused on the long term, stating, “We’re not turning our backs on ESPN but we want to have multiple conversations and we want to make a smart, strategic decision that works best for our long term.” He clarified that this long-term view extends beyond just the financial terms.
Acknowledging the importance of revenue for shareholders, Shapiro stressed the equal significance of finding the best marketing partner and brand builder. He questioned which partner would best help continue the growth of what he described as a “nascent sport” compared to leagues like the NFL or Major League Baseball, which have existed for a century.
The UFC`s previous move to ESPN was instrumental in providing legitimacy, positioning the promotion on a major sports network alongside leagues like the NFL and NBA, with UFC athletes frequently appearing on ESPN programming beyond live events.
Shapiro noted the current negotiation window involves numerous factors. Despite strong market demand, the company aims to be thoughtful and strategic in its choice of partner, viewing any agreement as a mutual long-term commitment. Considerations include the potential partner`s stability, long-term strategy versus short-term gains, the possibility of dividing rights into multiple packages, and the future role of pay-per-view.
Highlighting UFC`s unique advantages in the sports landscape, Shapiro pointed to its year-round global schedule, agile leadership structure (contrasting with owner committees in other leagues), and strategies to incentivize fighters beyond event purses. He added that platforms recognize the promotion`s young and diverse audience and its significant upside potential.
A key factor benefiting UFC is its position as one of the only major premium sports rights packages available in the market over the next few years, with few other significant properties hitting the market until 2028. This scarcity enhances its value to potential partners.
Specifically, Shapiro mentioned the upcoming launch of ESPN`s standalone streaming service at a $29.99 price point later this year. He noted that premium content, like UFC, is crucial for attracting and retaining subscribers on such direct-to-consumer platforms, just as it is for linear television. The UFC`s prior deal significantly boosted ESPN+ subscribers.
Describing the current environment, Shapiro called the sports media rights market “hot,” with demand outstripping supply, particularly for premium content. He framed UFC as a “proven winner,” an “antidote to churn,” and a “proven formula for subscriber acquisition,” making it highly valuable to networks and streamers alike.
Ultimately, Shapiro conveyed confidence in the UFC`s advantageous position. He anticipates continued strong demand due to the sport`s inherent appeal: it`s live, generates built-in fan interest, is highly shareable, and produces easily consumable highlights.
