The UFC has signed a new media deal with Discovery, Inc. in Spain and the Netherlands as the company continues to bring in top dollar for its international media portfolio per Sportico.
The media deal reflects a “significant increase” over what it was previously making in those territories per UFC CFO Andrew Schleimer. The UFC will air on Discovery+ in the Netherlands and on Discovery-owned Eurosport in Spain.
The UFC is taking advantage of its broad international popularity due in part to the wide array of countries participating in the sport. According to the UFC, 90% of its 625 million global fans live outside the U.S. As of the start of 2022, 9 of the 12 current UFC champions are from outside the U.S.
After Endeavor touted the UFC as having its best 9-month span in its history, it is already set out to have its best business year in 2022. The UFC is still eyeing media deals in China and the Middle East. Despite the broad international appeal, 90% of UFC media revenue comes from North America as Sportico cites the UFC’s $1.5 billion deal with ESPN.
So, media deals in international markets is a growth area for 2022. Certainly, if and when COVID restrictions are lifted in other countries, the UFC will make a run at live events in other countries to further entice outside U.S. markets with its product and sign licensing agreements. Per the UFC, the promotion’s 15 newest overseas media deals represent an 8-% increase from its prior payments.
Sportico reports that the media deals are a credit to the UFC being more popular than ever and the UFC becoming “fully integrated” into the broader Endeavor ecosystem (i.e., a global sales team and expertise in foreign markets).
Payout Perspective:
This is just further evidence that the UFC product is on a high right now experiencing a significant increase in profits. Due to its popularity, the company can raise its licensing fees on media deals. Helped by Endeavor’s wide array of expertise in global sales and contacts, this will benefit the company as it looks to lock down more media deals this year which include renewals for the U.K. and Ireland, Brazil, Germany, Russia and Japan. Things are looking up for company.
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