Paramount Buys Ufc Rights In $7.7 Billion Deal

Days aft completing its merger pinch Skydance, Paramount has acquired nan U.S. authorities to TKO Group’s UFC for 7 years, opening successful 2026.

Paramount is paying an mean of $1.1 cardinal per year, totaling $7.7 billion, for UFC’s afloat slate of 13 marquee events and 30 “Fight Nights,” nan companies said successful a statement. All matches and events will beryllium streamed successful nan U.S. via Paramount+, and prime events will beryllium simulcast connected CBS. The woody payments are weighted, pinch Paramount paying little than $1.1 cardinal successful nan early years of nan woody and higher values later.

Paramount won’t complaint users immoderate further fees for entree to nan events, eliminating nan pay-per-view exemplary that ESPN+ has utilized for definite premium UFC events. Disney’s ESPN had been paying an mean of $500 cardinal for 5 years of UFC rights. That woody expires astatine nan extremity of 2025.

“The pay-per-view exemplary is simply a point of nan past,” said Mark Shapiro, TKO Group’s president and main operating officer, successful an interview. “What’s connected pay-per-view anymore? Boxing? Movies connected DirecTV? It’s an outdated, antiquated model. So, it was paramount to america — forgive nan pun — wherever it’s one-stop shopping, particularly for our younger fans successful flyover states. When they find out, ‘Wait, if I conscionable motion up for Paramount+ for $12.99 a month, I’m going to automatically get UFC’s numbered fights and nan remainder of nan portfolio?’ That’s a connection we want to amplify.”

It’s been a engaged fewer days for some Paramount and TKO. Paramount officially sold power of nan institution to Skydance Media connected Thursday, bringing successful caller activity led by Chief Executive Officer David Ellison. Also past week, TKO signed a five-year, $1.6 cardinal woody pinch ESPN for nan U.S. authorities to WWE’s premium unrecorded events. UFC and WWE merged to go TKO successful 2023.

TKO activity initially believed it would waste conscionable nan 30 Fight Night events to Paramount and nan premium numbered events to different media partner, said Shapiro. When nan Skydance-Paramount woody closed Thursday, nan 2 sides negotiated this woody successful 48 hours, he said.

It was important for Ellison to bargain nan full UFC package fixed nan scarcity of sports authorities disposable successful nan coming years, he said successful an interview. With Formula 1 authorities likely earmarked for Apple and Major League Baseball waiting until 2028 to reorganize its awesome media packages, location won’t beryllium galore top-shelf sports assets coming to marketplace for Paramount to acquire.

“UFC is simply a unicorn plus that comes up astir erstwhile a decade,” Ellison said. He described himself arsenic a UFC fan.

UFC events are desirable for streamers because they return spot year-round — keeping fans paying for monthly subscriptions pinch little inducement to cancel seasonally than pinch different sports. There are 43 unrecorded events annually, consisting of 350 hours of unrecorded programming.

Paramount is willing successful buying UFC’s world authorities to brace pinch U.S. rights, nan institution said successful a statement. Those authorities originate connected a rolling basis, pinch astir one-third of them disposable each year. UFC matches are presently disposable successful much than 210 countries.

Paramount will person a 30-day exclusive negotiating model for each country’s authorities erstwhile they’re up for renewal, Shapiro said.