The UFC will have to make a decision this year that will determine their future on television.
They are seeking a new television deal. Although PPV (pay-per-view) is a top income for the promotion, the increase in TV rights for all sports is what every league is gunning for, and the UFC is no different.
The UFC is looking to get some huge money in TV rights for their programming when their contract with FOX Sports ends. When Zuffa sold the UFC to WME-IMG two years ago for $4 billion, one of the main talking points in the aftermath was what kind of money they could get when their seven-year contract with FOX Sports ends in 2018.
Currently, FOX pays $90 million annually for the UFC’s content. Several months ago, FOX’s exclusive window to negotiate a renewal ended.
The plan that WME-IMG has for the new TV rights deal is to get a major price bump. Since the exclusive window with Fox ended, WME-IMG has been shopping the promotion around to other broadcasters.
The promotion has been under a broadcasting deal with Fox since 2011 in the United States. That financial number has apparently increased over time to around $120 million-a-year, with a planned increase to $160 million in this last year of the deal.
It’s been reported that the promotion is seeking $450 million-a-year in broadcast rights revenue now that their exclusive negotiating period with FOX has ended. As a result of such an increase of money, it sounds like there aren’t many buyers.
Turner Sports has shown the most interest in a UFC deal. The UFC has also had talks with Amazon as well as other digital providers.
It t appears that the UFC will not be able to get close to their asking price with just one broadcast partner. Thus, they may make their fans find their content over a variety of platforms come 2019.
The UFC handles production of its shows, including all of the costs of production, but the new deal may shift that burden onto the new partners, increasing profits for the UFC. It should be noted that in the past UFC President Dana White and Zuffa was very firm on their stance regarding controlling production.
According to a report by Variety, FOX and ESPN are teaming up to bid for split broadcasting rights for several years. Here are some of the major details reported:
Variety has learned that the two companies have recently proposed to split the UFC TV package in a move that would bring as many as 15 fight events to new subscription streaming service ESPN+.
According to sources with knowledge of the proposal, ESPN has signaled that it would be willing to pay $120-180 million per year to add the Endeavor-owned mixed martial arts league to its collection of live-event rights.
A joint bid with ESPN would see Fox’s total number of events decline slightly. Representative for ESPN, Fox Sports, and Endeavor declined to comment.
It was noted in this report that FOX was only willing to go up to $200 million and won’t go over that number. FOX Sports 1 & 2 distribute the UFC’s content right now. The majority of their scheduling program is the UFC.
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