UFC Not Rushing New Broadcast Deal, ESPN Remains Key Partner

The Ultimate Fighting Championship (UFC) has begun receiving proposals from prospective media companies for a new broadcast rights agreement scheduled to commence in 2026. However, the organization is indicating it is not in a hurry to finalize or announce a deal.

The exclusive negotiation period the UFC had with ESPN concluded in April. This development opened the door for other television networks and streaming services to submit bids for portions or all of the forthcoming media rights. Reports suggest the UFC is aiming for approximately $1 billion annually from the new contract, following their current seven-year, approximately $1.5 billion deal with ESPN that began in 2018.

Despite engaging with other interested parties, TKO President and Chief Operating Officer Mark Shapiro stated that discussions with ESPN are very much still active.

During a recent TKO financial call, Shapiro commented, “We are currently in conversations with various third parties regarding the UFC’s rights. I would describe these talks as considered and strategic. There is nothing concrete to announce at this moment, and ESPN is still very much involved.”

Shapiro further praised their existing partner, saying, “We have been quite vocal about their excellent partnership and their significant role in our expansion and success. I still believe they are one of the top marketing operations in the industry, not to mention the strength of the ESPN brand and the excitement around its flagship platform, whatever it may be called next week. Jimmy Pitaro [ESPN chairman] and Bob Iger [Disney CEO] are both UFC enthusiasts and have attended our events personally. We would be delighted to continue our relationship with them, and they are definitely part of our considerations. However, as I mentioned, for now, it’s a range of discussions with various entities, and there are no significant updates beyond that.”

Shapiro referred to the “ESPN flagship,” likely indicating the upcoming streaming service from the Disney-owned entity. This service is expected to offer access to channels currently available via traditional cable and satellite like ESPN, ESPN2, and ESPNews, alongside future plans integrating their current streaming offering, ESPN+.

While the UFC and ESPN did not reach a new agreement during their exclusive window, this outcome was generally anticipated. It was after this exclusive period expired that the UFC was free to gauge interest and offers from other potential broadcast or streaming partners in the market.

No final decisions have been made, but Shapiro reiterated the company’s adaptable approach regarding the structure of the future broadcast rights deal for the UFC, encompassing pay-per-views, Fight Night events, and other promotional content.

“We remain highly flexible,” Shapiro asserted. “That is the benefit of owning your league. That is the benefit of having an executive management team that is as responsive and cohesive as ours. As we often say, we are both the owners and the commissioners simultaneously. We will make choices that are in the best long-term interest of the sport and the brand. We must continue to balance maximizing the value of these rights while also ensuring what is best for our reach, engagement, and the growth of the brand.”

He added, “The market, I believe, remains robust. Our content is available year-round. It appeals strongly to young men. Our viewership figures among those under 18 are exceptionally high. Interestingly, our high school numbers are off the charts. We are tied with the NBA as a top draw among the under-18 demographic for major sports, and we continue to act as a defense against subscriber churn and are a proven method for acquiring new subscribers. Therefore, we are cautiously optimistic.”

The initial agreement between the UFC and ESPN was actually signed in May 2018. However, it appears the promotion is not speeding towards the finish line just yet for the next broadcast rights deal, which is set to start in 2026.

Discussions are ongoing and will continue until an agreement is successfully reached.

“We are not in a rush,” Shapiro concluded. “This is a volatile economic climate currently, with considerable uncertainty. We also recognize that there aren’t many major sports rights entering the market in the near future. So, we will be opportunistic but also responsible in selecting the appropriate home for the growth of our brand.”