The UFC is set to begin negotiations for a new TV deal as ESPN, in partnership with FOX and Warner Bros. Discovery, plans to launch a new sports-specific streaming service in 2024, and a standalone ESPN streaming service in 2025.
UFC is gearing up for some serious TV deal negotiations. This comes as the world of sports programming and streaming is set for a major shake-up in 2024 and 2025.
ESPN dropped some big news on Tuesday. They’re teaming up with FOX and Warner Bros. Discovery. The trio is launching a new sports-specific streaming service.
This service will be a one-stop-shop, combining channels from all three networks. It’ll feature all ESPN channels, FOX, FS1, FS2, TNT, TBS, and other sports-carrying channels.
And when’s this all happening? Fall 2024, just in time for the next NFL season.
But wait, there’s more. Disney’s CEO, Bob Iger, had another announcement on Wednesday. A completely standalone ESPN streaming service is also in the works. This one’s likely to launch in late August 2025.
Right now, you can only get ESPN through cable, satellite subscriptions, or other live streaming services like YouTube TV or Sling TV. ESPN+ doesn’t have access to linear ESPN channels without a subscription to one of those other services. But that’s all set to change in 2025.
How much will these new services cost? That’s still under wraps.
So, what’s this got to do with UFC? Well, the promotion is about to start negotiations on a new TV broadcast fights deal. The current ESPN deal is set to expire in 2025.
Many believe UFC will be seeking a much bigger package than its last contract. The previous contract was worth $1.5 billion over five years. Then, they agreed to a two-year extension and the inclusion of pay-per-view broadcasts that now air exclusively through ESPN+.
Consider this: UFC’s partners at WWE just signed a whopping $5 billion, 10-year deal. This deal will move its flagship program, Monday Night Raw, from the USA Network to Netflix starting in 2025.
UFC is likely to seek at least double the previous deal signed with ESPN. This could mean a rights package for all programming that could skyrocket to $3 billion or higher.
Thanks to the growth of ESPN+, largely due to UFC programming, Disney will likely want to renew the deal with UFC. But the rising costs of live sports programming can’t be ignored.
Right now, the NBA earns an average of $2.67 billion per season. Games are broadcast across Disney-owned networks like ESPN and ABC, as well as Warner Bros. Discovery properties like TNT.
Other players like Apple TV or NBCUniversal could take a shot at the NBA’s rights. But ESPN, FOX, and Warner Bros. Discovery now have a vested interest in working together.
This could mean package deals with a league like the NBA or possibly UFC. It could also force an outside entity like Amazon to overpay to land a product like UFC.
Executives at TKO say that UFC’s relationship with ESPN remains strong. But there’s no telling where the broadcast rights deal will end up once negotiations begin again.
UFC might even seek multiple partners for a split broadcast deal. A UFC Fight Night event could air on ESPN one night and then the next week would be on Amazon Prime Video.
The sports broadcast landscape is set to change dramatically over the next two years. ESPN is diving deep into the streaming side of the business. What this means for UFC long-term remains to be seen. But one thing’s for sure, interesting times lie ahead as negotiations for that new TV deal prepare to kick off later this year.