Paramount Secures UFC Broadcast Rights in Landmark $7.7 Billion Agreement

In a significant development following its merger with Skydance, Paramount has successfully acquired US broadcasting rights for the UFC. This extensive agreement, slated to commence in 2026, spans seven years.

The contract will see Paramount investing an average of $1.1 billion annually, amounting to a comprehensive $7.7 billion. This covers 13 major UFC events alongside 30 "Fight Nights." These will be broadcasted within the US through Paramount+, with additional coverage of select events on CBS. Payment terms are structured such that Paramount will initially pay less, with increments over the duration of the contract.

Transforming the Pay-Per-View Landscape

In a departure from the existing pay-per-view model used by ESPN+, Paramount will not impose extra charges for accessing these events. ESPN's current contractual agreement of $500 million for five years is set to conclude at the close of 2025. This shift aligns with the perspective of Mark Shapiro, TKO Group's president, who regards the pay-per-view model as outdated and ineffective.

"The traditional pay-per-view model is essentially obsolete," Shapiro explained. "Today's consumers, particularly younger audiences in less urbanized areas, require a more accessible package. This deal achieves precisely that, simplifying content access through a single subscription to Paramount+."

Rapid Development Following Skydance Merger

In the week following the formalization of the Skydance merger, Paramount also secured rights to WWE's premium live events. The merger between UFC and WWE in 2023 to form the TKO Group facilitated these strategic endeavors.

Initially, there was an inclination to distribute only the 30 'Fight Night' events to Paramount, delegating the premium events to alternate partners. However, under the new leadership of CEO David Ellison, the comprehensive UFC package was prioritized given the limited availability of high-profile sports rights in the near future.

A Strategic Asset

"UFC is a unique asset, presenting itself infrequently," commented Ellison, who is a self-proclaimed avid UFC enthusiast. The strategic acquisition of the entire UFC portfolio was deemed crucial against a backdrop of limited opportunities, with other major sports rights, like Formula 1 and Major League Baseball, unavailable until late 2028.

Consistently held throughout the year, UFC events entice streaming platforms with continuous engagement potential. With 43 live events annually, accumulating 350 hours of broadcast content, they effectively deter seasonal subscription cancellations.

Exploring Global Rights

Paramount is evaluating the acquisition of international broadcasting rights to complement their US holdings. These international rights emerge progressively, with a third available each year, and are currently accessible in over 210 countries. Paramount has a 30-day exclusive negotiating window for each territory’s rights upon their renewal.