The UFC is now officially able to receive offers from other broadcast partners starting Tuesday, as the exclusive negotiation period with ESPN has concluded.
While reaching a new agreement before April 15th always seemed improbable due to the competitive nature of broadcast rights deals, UFC and ESPN have maintained a successful partnership over the past seven years. Nevertheless, UFC is reportedly seeking over $1 billion per year for its new broadcast rights deal – a significant increase from the current average of $300 million per year paid by ESPN.
The outcome remains uncertain, but ESPN chairman Jimmy Pitaro has expressed no concern about not finalizing a deal with UFC before other networks and potential streaming partners can begin bidding.
“The exclusive negotiation window is expiring soon, but I wouldn’t overinterpret that,” Pitaro stated to Sports Business Journal. “We are not overly focused on that window.”
“We anticipate significant interest in the UFC, which is beneficial for the sport and for them. However, we are still interested in finding a solution with them.”
The evolving landscape of broadcast rights deals places the UFC in a favorable position as their contract with ESPN concludes at the end of 2025.
No other major sports property was available until 2028, until ESPN severed ties with Major League Baseball in February, setting that deal to also end in 2025. Even so, the UFC remains a highly viable and profitable entity, particularly due to its year-round event schedule, unlike baseball and most other professional sports that operate seasonally.
This continuous schedule has deterred Netflix from bidding on broadcast rights for other sports; however, this is not a concern with the UFC.
Initially signed as a five-year agreement before being extended by two years with the addition of pay-per-view broadcast exclusivity, Pitaro spoke highly of his working relationship with the UFC. However, he could not predict the future of these negotiations.
“UFC has been very positive for ESPN,” Pitaro commented. “We launched ESPN+ in April 2018, and the UFC property was the premier offering for ESPN+ at its launch. Looking at today, it remains the premier offering for ESPN+.”
“We also believe we have been a strong partner to the UFC through our promotion and commitment to mixed martial arts and specifically the UFC across our studio programming and digital platforms.”
While Pitaro portrays a positive relationship between ESPN and the UFC, there have been challenging moments.
One notable instance was the turmoil surrounding the UFC 313 broadcast, where fans and even fighters experienced increasing frustration due to the inability to purchase or view the pay-per-view. Following this, sources indicated that UFC executives were extremely “furious” about the technical issues that plagued the broadcast, and this was not an isolated incident.
The final outcome is still unknown, but serious discussions about the UFC`s next steps will commence on Tuesday, after the exclusive negotiation period with ESPN ends.
