The Ultimate Fighting Championship (UFC) is reportedly aiming for a broadcast rights agreement worth at least $1 billion per year, following the expiration of its current contract with ESPN at the close of 2025. However, financial considerations are not the sole factor guiding the decision on the promotion`s future media home.
This perspective was shared by Mark Shapiro, President and Chief Operating Officer of TKO Group Holdings, during recent remarks on the UFC`s ongoing negotiations. He confirmed that the company is actively engaged in discussions with multiple networks and streaming platforms interested in securing the broadcasting package.
While the UFC did not reach a new agreement with ESPN during their exclusive negotiating window which closed in April, Shapiro indicated that they are still communicating with the network owned by Disney, in addition to exploring opportunities with all other interested parties.
“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,” Shapiro stated at the J.P. Morgan Global Technology, Media and Communications conference. He emphasized that the long-term vision extends beyond just the monetary aspect.
Shapiro acknowledged the importance of the financial terms, particularly for shareholders, but equally stressed the significance of selecting a partner who will serve as the best marketing collaborator and continue to grow what he described as a still “nascent sport” when benchmarked against leagues like the NFL or Major League Baseball, which boast a century of history.
A key benefit of the UFC`s previous move to ESPN was the enhanced legitimacy it provided, with events being broadcast on the most prominent sports network in the United States. This partnership allowed UFC stars to frequently appear on ESPN shows and programming, effectively positioning the promotion alongside established major leagues such as the NFL and NBA.
Nonetheless, Shapiro is aware that numerous variables will factor into the UFC`s ultimate decision regarding its next broadcast rights deal.
“We’re in a window and we’re in multiple conversations,” Shapiro confirmed, noting strong demand. “But we want to be thoughtful and strategic about who we sign up with.” He likened the process to the 10-year Netflix deal for WWE, highlighting that such agreements involve a mutual bet. Key questions being evaluated for the UFC rights include the potential partner`s stability and long-term strategy, balancing short-term gains, the possibility of dividing rights into different packages, and the future role of pay-per-view.
Shapiro also pointed out advantages unique to the UFC compared to many other sports properties. These include being a year-round entity, operating globally, having a centralized decision-making structure without an owner`s committee, and actively finding ways to incentivize fighters beyond their in-octagon performance, which he noted is recognized by potential platforms. He also highlighted the UFC`s appeal to a young, diverse audience and its significant growth potential.
Another major factor benefiting the UFC`s negotiating position is that its rights package is one of the only significant sports properties available for renewal in the near future, with others not expected until 2028. This scarcity could encourage potential partners to offer more competitive bids.
Specifically, Shapiro mentioned ESPN`s upcoming standalone streaming service, launching later this year at a starting price of $29.99. He suggested that offering premium content not available elsewhere is essential for attracting and retaining subscribers, citing how the current seven-year deal with ESPN helped drive subscriptions to ESPN+ by granting exclusive rights, including pay-per-view broadcasts.
“I have never seen the sports media rights environment this hot,” Shapiro asserted. While acknowledging potential periods of slight cooling, he maintained it would “never go cold” because sports rights are a proven method for reducing subscriber churn and acquiring new ones. He explained that platforms need premium content for both direct-to-consumer services (like ESPN`s new offering, which will have integrated features) and traditional linear channels. With demand for premium content currently outpacing supply, especially concerning sports rights, the limited availability of major properties like the UFC and WWE`s premium live events before 2028 strengthens the UFC`s position.
Shapiro clearly feels the UFC is in an advantageous spot, which likely contributes to the thorough due diligence and conversations with numerous potential partners before finalizing a new broadcast rights deal. He concluded by stating this strong position is expected to continue because of the sport`s inherent qualities: its live format, shareability, “snackable” highlights, and the strong “built-in rooting interest” among fans.
Wesley Dunham 
Marcus Blakely