Endeavor says its willing to open up renewal talks sooner than later

Speaking at an investor’s conference earlier this week Endeavor president Mark Shapiro indicated that it may open the conversation of renewal with Disney sooner than later.  This would pave the way for the UFC to continue on ESPN and its digital platform.  

Deadline first reported the possibility as well as Sportico.

Shapiro spoke at a conference hosted by Wall Street firm RBC Capital Markets.  He noted the familiar ties between Endeavor and Disney which makes it “stickier” than other business partners.  

Disney loves the UFC according to Shapiro.  The promotion has done well for its content on ESPN+ and ESPN.  Despite consumers having to pay a fee for the digital platform in addition to the UFC’s PPV fights, business is on the rise.  As a result, the UFC has been able to engage with brands in selling sponsorships.  Also, its live gates have been on the rise with nearly a sellout each time since the pandemic.  

Shapiro noted that it is not looking at Netflix as a viable partner if Disney does not work out.  Shapiro stated, “We’re not going to be a guinea pig.”  In part, this is in reference to the amount of capacity Netflix could handle as a marketing partner.  While Netflix has seen a spike in the popular F1 reality series and the company’s possible move into live sports, Shapiro indicates he does not want to be the first live sports to stream with Netflix.

However, streaming competitors such as Apple TV+, HBO Max, Peacock, Paramount+ and others are out there.  Shapiro did suggest that streaming strategy has changed over the years with executives being much more conservative about its spending.  

Payout Perspective:

The news seems to infer that Endeavor and Disney are destined to continue its successful relationship.  Unless, there is a big spending streaming service willing to pull it away from Disney.  The UFC has been a valuable asset for Disney with helping it build its subscription base.  The hope would seem to lie within how Amazon Prime is doing with the NFL.  Meaning, is there a company out there willing to overpay for the UFC? With its comments that it does not want to be Netflix’s “guinea pig” I would suggest it would only look to Apple or perhaps the Peacock Network (which has the WWE) to make a bid.  If so, Endeavor would be happy with a bidding war for the UFC.