Sports Business Journal reports that ESPN is not concerned that its exclusive window to secure a new deal with the UFC ends on Tuesday. In an interview with Jimmy Pitaro, he stated not to read too much into the end of the period.
After April 15th, the UFC is free to negotiate a new media rights deal with any other entity aside from ESPN. The current deal with ESPN ends at the end of 2025. The UFC has been with ESPN since the beginning of 2019 as it became the exclusive rights holder for UFC PPV and live events. It was one of the only sources of live events during the pandemic and bolstered the ESPN+ service at the beginning.
While the UFC has been a great sports property for ESPN, it does not mean that the promotion would not go elsewhere if given the right deal.
The UFC is looking for a deal that would be more than $1B per year. In comparison, the current ESPN deal is worth $1.5B total for five years.
The UFC was upset with tech issues during UFC 313 which might be a source of discontent for the promotion as it eyes a new deal. Its stablemate, WWE, forged a new path by leaving terrestrial television and airing WWE Raw on Netflix to mostly positive reviews.
Payout Perspective:
Think this as posturing from both sides. The UFC wants to explore the market so there were never going to sign a new media rights deal during the exclusive rights period. The UFC story about being upset with tech issues was from the NY Post which probably sowed the seeds of discontent in potentially baiting bidders for the company’s business. Pitaro’s statements may also show that its confident ESPN can come to terms with the UFC. But, UFC possibly seeking $5B for a 5-year deal seems pricey during a time when the market looks to be in a downward spiral.
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