The UFC is now free to receive offers from various broadcast partners as its exclusive negotiation period with ESPN has ended.
While securing a new agreement before April 15th was always considered challenging due to the competitive market for broadcast rights, UFC and ESPN have had a successful partnership for the past seven years. However, reports indicate the UFC is aiming for over $1 billion per year in a new broadcast rights deal, a significant jump from the current $300 million annual average paid by ESPN.
The outcome remains uncertain, but ESPN chairman Jimmy Pitaro has stated he is not worried about failing to finalize a deal with the UFC before other networks and streaming platforms can bid.
“The exclusive negotiation window is ending soon, but it shouldn`t be overinterpreted,” Pitaro told Sports Business Journal. “We are not overly concerned about this window.”
“We are aware of the strong interest in the UFC, which is positive for the sport and for them. We are still interested in finding a solution with them.”
The evolving landscape of broadcast rights deals puts the UFC in a strong position as their contract with ESPN concludes at the end of 2025.
Until ESPN ended its agreement with Major League Baseball in February (also ending in 2025), no other major sports property was available until 2028. The UFC remains a valuable and profitable property, particularly because it holds events throughout the year, unlike baseball and most other professional sports with seasonal schedules.
This year-round schedule is a key factor that previously deterred Netflix from bidding on broadcast rights for other sports, but it is not a concern with the UFC.
Initially a five-year agreement, extended by two years with the addition of pay-per-view exclusivity, Pitaro praised the working relationship with the UFC. However, he acknowledged uncertainty about the future of these negotiations.
“UFC has been very beneficial to ESPN,” Pitaro said. “We launched ESPN+ in April 2018, and UFC was the premier property for ESPN+ from the start and remains so today.”
“We also believe we have been a great partner to the UFC through our promotion and commitment to mixed martial arts and specifically the UFC across our studio programming and digital platforms.”
Despite Pitaro’s positive description of the ESPN-UFC relationship, there have been challenging moments. Notably, the UFC 313 broadcast faced significant issues, with fans and fighters expressing frustration over the inability to purchase or watch the pay-per-view. Sources informed MMA Fighting that UFC executives were “furious” about the technical problems, which was not an isolated incident.
The future remains unclear, but serious discussions regarding the UFC`s next steps will commence as the exclusive negotiation period with ESPN concludes.