As the UFC approaches its next broadcast rights agreement in 2025, speculation is growing about whether the organization is aiming for over $1 billion annually in these negotiations.
Mark Shapiro, president and COO of TKO Group Holdings, addressed this question at the Morgan Stanley Technology, Media and Telecom conference. While it’s widely expected that the UFC will surpass its current deal with ESPN, which began in 2018, reports have suggested the company is seeking a significant increase when the new deal starts in 2026.
The initial five-year agreement with ESPN was valued at $1.5 billion, with a subsequent two-year extension and the addition of pay-per-view broadcasts.
Shapiro stated that their goal is to maximize value, emphasizing that they believe the UFC is currently undervalued. He clarified this isn’t due to a previous bad deal but because the media landscape has changed significantly over the past seven years. He acknowledged analyst predictions suggesting a potential doubling of the rights value but noted that specific figures are not company statements, rather general speculation.
Shapiro indicated that the idea of the UFC’s broadcast rights being worth such a substantial amount likely arises from several factors.
Firstly, sports rights remain highly valuable, especially with streaming platforms like Netflix and Amazon Prime Video entering the bidding arena. He cited the NBA’s new $76 billion deal over 11 years, which more than doubled their previous $24 billion, nine-year agreement.
Shapiro explained that observers see the UFC as a popular, expanding, diverse, and youthful brand with a significant 18-34 demographic. He highlighted the UFC’s year-round schedule, global presence in 170 countries, and growth potential in regions like Europe, Latin America, Asia-Pacific, and the Middle East and North Africa. This leads to perceptions of unlimited growth potential for the UFC.
However, he also mentioned awareness of situations with MLB and F1, suggesting a balanced perspective is needed. Shapiro confirmed they are in an exclusive negotiation period with ESPN and Disney, with whom they value their relationship and recognize their contribution to UFC’s success. They are currently exploring a renewal but will consider other options if negotiations are unsuccessful.
Shapiro referenced ESPN declining to renew their MLB broadcast deal and not reaching an agreement for Formula 1 racing initially.
The UFC’s exclusive negotiation window with ESPN is open until April 15. After this date, the company can receive offers from other interested parties.
Shapiro recognizes that numerous offers for UFC broadcast rights are expected. However, he stressed the importance of long-term brand growth over short-term financial gains.
He elaborated that while a streaming service or network might offer a higher financial bid, the level of exposure provided by the platform is crucial. If it doesn’t match ESPN’s reach, the increased revenue might not be beneficial in the long run.
“Our priority is brand development,” Shapiro emphasized. “While mainstream now, mixed martial arts is still a relatively young sport compared to established leagues like MLB and NFL. We are focused on reach, engagement, and brand strength alongside financial considerations. We are playing a long-term game.”
“There may be platforms willing to pay more, but they might not be the ideal fit for our brand. Ultimately, we are building for the future, aiming to expand our audience, monetize effectively, and ensure we are well-positioned for continued success in future rights deals, even beyond the involvement of current leadership.”
