The exclusive negotiation period between the Ultimate Fighting Championship (UFC) and ESPN has concluded, allowing the UFC to officially entertain offers from other broadcasters starting Tuesday.
Despite the widely anticipated difficulty in finalizing a deal before the April 15th deadline due to the competitive market for broadcast rights, UFC and ESPN have enjoyed a prosperous partnership for the past seven years. However, reports indicate that the UFC is seeking over $1 billion annually for its new broadcast rights agreement, a significant jump from the current average of $300 million per year paid by ESPN.
The ultimate outcome remains uncertain, but ESPN chairman Jimmy Pitaro has expressed no apprehension about failing to secure a deal with the UFC before other networks and streaming platforms can submit their bids.
“The exclusive negotiating window is coming to an end shortly, but I wouldn’t overinterpret that,” Pitaro stated to Sports Business Journal. “Our focus isn’t solely on this window.”
“We recognize the strong interest in the UFC, which is beneficial for the sport and for them. We are still interested in finding a solution with them.”
The evolving landscape of broadcast rights deals places the UFC in a strong negotiating position, especially with their contract with ESPN expiring at the end of 2025.
Prior to ESPN’s decision to terminate its agreement with Major League Baseball in February, no other major sports property was available until 2028. This MLB deal also now concludes in 2025. The UFC remains a highly attractive and profitable property, particularly due to its year-round event schedule, unlike baseball and most other professional sports that operate seasonally.
This continuous schedule is a key factor that has previously deterred Netflix from bidding on broadcast rights for other sports, but it poses no such issue for the UFC.
Pitaro, reflecting on the initial five-year deal that was extended by two years with the addition of pay-per-view exclusivity, only had positive remarks about the working relationship with the UFC. However, he refrained from predicting the outcome of the ongoing negotiations.
“UFC has been very valuable to ESPN,” Pitaro acknowledged. “When we launched ESPN+ in April 2018, UFC was the premier content offering for ESPN+ at its inception. Even today, it remains the marquee property for ESPN+.”
“We also believe we have been an excellent partner to the UFC through our promotion and dedication to mixed martial arts and specifically the UFC across our studio programming, website, and the ESPN app.”
Despite Pitaro’s positive portrayal of the relationship between ESPN and the UFC, there have been instances of tension.
One notable example is the issues surrounding the UFC 313 broadcast, where fans and fighters expressed growing frustration over difficulties purchasing and viewing the pay-per-view event. Sources informed MMA Fighting afterward that UFC executives were “furious” about the technical problems that plagued the broadcast, and this was not an isolated incident.
The future remains undecided, but serious discussions regarding the UFC`s next broadcast partner will commence on Tuesday, following the expiration of the exclusive negotiating window with ESPN.
