The UFC is reportedly in search of at the very least $1 billion per yr below phrases of a brand new broadcast rights deal after the promotion’s present contract with ESPN expires on the finish of 2025, however cash isn’t the one driving issue behind no matter resolution is made for the long run.
That’s in keeping with TKO Group Holdings president and chief working officer Mark Shapiro, who addressed the continuing negotiations for the UFC whereas additionally confirming that the corporate is presently engaged in conversations with quite a few networks and streaming shops fascinated by acquiring the printed rights bundle.
Whereas the UFC didn’t strike a brand new take care of ESPN throughout an unique negotiating window that closed in April, Shapiro says they’re nonetheless talking with the Disney-owned community and branching out to speak to all events.
“We’re not turning our backs on ESPN however we need to have a number of conversations and we need to make a sensible, strategic resolution that works finest for our long run,” Shapiro mentioned on the J.P. Morgan International, Know-how, Media and Communications convention on Tuesday. “The long run isn’t just the cash.
“In fact the cash’s vital … in fact it’s vital to our shareholders. Most significantly however on the identical time, what’s finest for our model? Who’s going to be our greatest advertising and marketing accomplice? Who’s going to proceed to drive, what continues to be a nascent sport if you examine to leagues like NFL and Main League Baseball, who’ve been round for 100 years?”
An enormous a part of the UFC touchdown at ESPN was giving the struggle promotion a degree of legitimacy with occasions airing on the most important sports activities community in the USA.
UFC stars continuously seem on ESPN reveals and programming exterior of the occasions that air on the community, which places the promotion shoulder to shoulder with different main sports activities leagues just like the NFL and NBA.
That mentioned, Shapiro is aware of that there are quite a few components that play into no matter resolution the UFC finally makes concerning the subsequent broadcast rights deal.
“We’re in a window and we’re in a number of conversations,” Shapiro mentioned. “Demand is powerful. However we need to be considerate and strategic about who we join with. After we signed on the dotted line to go 10 years with Netflix [for WWE], you’re having a bet. They’re having a bet on you however you’re making an equal wager on them.
“It goes each which approach because it pertains to these UFC rights. Who’s going to be round? Who’s going to stay round? Who’s acquired a long-term technique? Who’s going to be good in simply the quick time period? Are you able to divide it up into a number of packages and have your cake and eat it, too? What’s the way forward for pay-per-view? Do you want pay-per-view? That is all stuff we’re analyzing and having conversations on.”
Shapiro additionally identified some benefits the UFC has over different sports activities properties, which incorporates the management construction the place all selections are made by a number of key executives somewhat than 32 house owners voting on proposals like within the NFL.
“There’s plenty of alternative,” Shapiro mentioned. “We’re yr spherical, most aren’t. We’re world, most aren’t. We don’t have an proprietor’s committee, most do. We incentivize our fighters to be part of the staff, frankly, and we’re discovering new methods for them to money in past simply profitable within the octagon. The platforms acknowledge that. We’re younger, we’re numerous, simply plenty of upside.”
One other enormous issue taking part in into the UFC’s favor is that the struggle promotion is the one main sports activities rights bundle accessible for the following few years, which can incentivize a possible accomplice to pay extra figuring out that nothing else turns into accessible till 2028.
Particularly, Shapiro talked about that ESPN is launching its own standalone streaming service later this year with a $29.99 starting price and one of the simplest ways to make sure subscribers are paying and staying there’s by providing premium content material not accessible anyplace else.
The UFC used that mannequin to assist drive ESPN+ subscribers after beforehand inking the seven-year deal that gave the community unique rights to all programming together with pay-per-view broadcasts.
“I’ve by no means seen the sports activities media rights surroundings this scorching,” Shapiro mentioned. “There might be intervals the place it cools off a little bit and as I discussed, heat versus scorching but it surely’s by no means going chilly. That’s simply not taking place. As a result of it’s a confirmed winner. As soon as once more, antidote to churn and on the identical time a confirmed components for subscriber acquisition.
“ESPN simply introduced this morning [the new streaming service], $29.99. So though will probably be a mirror of ESPN, it’s going to clearly have plenty of bells and whistles and completely different digital camera angles and multi-cast and fantasy and sports activities betting built-in, will probably be particular however you want premium content material to promote a [direct to consumer service] today. You want premium content material to maintain subscribers on linear. So that you’re feeding each beasts and I can let you know proper now because it pertains to premium content material, demand is outstripping provide and significantly with reference to sports activities rights, there’s no main properties exterior of the UFC and WWE [premium live events] that’s up for renewal till 2028.”
Shapiro clearly feels the UFC is in an advantageous place proper now, which might be a part of the rationale why the corporate is partaking in a lot due diligence and talking to a number of potential companions earlier than inking a brand new broadcast rights deal.
“We’re sitting in a really distinctive spot,” Shapiro mentioned. “Past that, it’s going to remain sturdy as a result of it’s a in-built rooting curiosity, it’s reside, it’s sharable, the highlights are snackable.”
