MMA Junkie reports on the positive outlook for the UFC’s broadcast rights after its current deal expires in 2018. The article states that NBC, ESPN, Turner and Fox will all vie for the rights which will bolster the value.
According to information included in an investor presentation obtained by Junkie, indicates that the UFC will have increased leverage due to the lack of other sports rights fees coming due until 2021. MLB, PGA and NHL will not be up until 2021. It also will seek to unbundle US and Hispanic rights that were previously bundled in the Fox deal.
The interesting financial numbers state that in 2015, the UFC generated $462 million in revenue for “content.” Of that amount 28% ($129M) was from domestic television deals and 18% ($83M) from international deals. 51% ($236M) of the $462 million was from domestic and commercial PPV. Notably, and perhaps a surprise to some, UFC Fight Pass provided just 3% with $14 million in revenue.
The investor presentation notes “escalators” within the UFC Fox deal which would grow the payout to $168 million by 2018 when the existing right deal ends.
Payout Perspective:
The UFC is still a PPV-based business and its reflected in the money it reportedly generates from fights. Obviously, the presentation is bullish on the UFC as it is trying to sell the idea that it will increase its current deal in 2018. The upcoming television rights fees deal will be a major event for the company as it is predicting a huge increase in its rights fee. You may also see it hoping to sell its digital rights in addition to the broadcast rights as a way to further monetize its content. It is notable that for as bullish as consumers were with UFC Fight Pass, it does not generate much in revenue for the company.
$83 million for international tv deals. That’s pretty damn good.
I hope they sign with Turner. So many potential outlets like tnt,tbs and trutv. Only issue would be lack of network tv like FOX.
I don’t get the Espn obsession. Espn schedule issues are too much. College football and basketball own Saturday nights.
Nbc would be a great option. Get a chance to be on nbc and USA network. Same family as wwe. I think wwe deal is up at the same time.
They need to strike a deal with Univision on the Spanish side.
no way , espn will sign the ufc, they have to much money tied up in the nfl and nba.
and there subscriptions keep dropping ufc should stay with fox
I think they will probably ask for a joint FOX/ESPN deal because it would benefit everyone involve money wise.
Fox & ESPN is the way to go, boths numbers should shoot back up once Hulu live streaming starts owned by the major players in sports Disney, Fox, NBC Universal and 10% by Time Warner. Only CBS isn’t involved.
Hulu just announced they will have both ESPN & Fox Sports on their skinny bundle TBS & TNT have been signed for a while, sports wise this from a cable point of view you have everything but NBC Universal but they own part of Hulu and NBCSN & Golf Channel will get added.
Again only CBS haven’t signed up but CBS Sports Network is tiny and Showtime is a premium channel and would cost more like HBO.