UFC loved one other record-breaking yr for income in 2023 however there’s a lot on the horizon that would assist or damage the corporate within the subsequent yr.
Maybe essentially the most monumental date to look at might be April 15, which is when the continuing antitrust class motion lawsuit filed in opposition to UFC by a number of former fighters will go to trial in Nevada. The lawsuit, which was first filed all the best way again in 2014, has a trial date set in April with each the plaintiffs and the defendant gearing up for a authorized combat in court docket.
The previous fighters have claimed UFC engaged “in a scheme to accumulate and preserve monopsony energy available in the market for elite skilled MMA fighter providers,” and use three elements to attain this aim together with acquisitions, unique contracts and coercion.
On Tuesday, the UFC house owners at TKO Group Holdings addressed the upcoming trial whereas noting that closed door discussions between the 2 events concerned are nonetheless ongoing.
“As we’ve at all times stated and that is our constant message since we began speaking about this case publicly, we consider strongly that the information and the regulation are on our aspect and we glance ahead, when it comes to timing, to creating our arguments to a jury at trial,” TKO chief monetary officer Andrew Schleimer stated throughout the name.
“However as is typical in a case like this, we’ve been engaged in personal mediation concurrently with our trial preparation. That’s what we’re ready to touch upon at the moment.”
The fighters who filed the lawsuit are looking for damages between $894 million and $1.6 billion.
UFC TV Deal Negotiations Begin Quickly
When celebrating one other strong yr financially for UFC with revenues hitting $1.3 billion in 2023, it doesn’t take lengthy to find these numbers might skyrocket even increased very quickly.
UFC will quickly start negotiations on a brand new broadcast rights take care of the promotion’s present contract with ESPN coming to an finish in 2025. That seven-year partnership maintained unique rights for all UFC programming together with pay-per-views on ESPN and ESPN+, which was a landmark deal on the time it was first introduced.
Many consider UFC might be looking for not less than double in broadcast rights charges for the brand new deal. It’s powerful to think about ESPN gained’t attempt to retain UFC, particularly given how profitable the present partnership has been for each manufacturers.
That stated, it’s an ever-changing market the place sports activities rights are involved with the NBA getting ready for a brand new TV deal proper now that could possibly be value greater than double what they at the moment obtain, which sits round $2.6 billion per yr. The NBA deal might reset the marketplace for sports activities rights offers, which in flip might have some opposed impact — positively or negatively — on the UFC.
There’s additionally the brand new streaming service that ESPN/Disney will launch later this yr with Warner Bros. and FOX that can function sports activities channels from all three networks underneath one banner. It’s potential the three studios are teaming as much as forestall bidding in opposition to one another to inflate sports activities rights packages sooner or later.
That stated, TKO CEO Ari Emanuel believes the UFC is positioned for an additional large deal as soon as negotiations start, particularly with so many potential companions looming on the market however nonetheless praising the present relationship shared with ESPN.
“We really feel very strongly about that and our partnerships that we at the moment have,” Emanuel stated. “However there’s many gamers within the market simply primarily based on the subs we’ve got at Comcast with the [premium live events with WWE] and what we’ve completed for ESPN/ESPN+ with the UFC.
“I believe [Netflix is] now a participant on this and all people is listening to them and what they’re going to do and now with the brand new entry with FOX, Warner Bros. and ESPN. That being stated, I believe they’re all transferring towards a linear [streaming] service and I believe our property are going to be actually essential in that dialog. We’re going to see what occurs with the NBA, I believe that’s going positively and so we really feel superb typically about the place sports activities rights are going. It’s all on an upward pattern.”
TKO president Mark Shapiro additionally identified that rumors in regards to the so referred to as “bubble bursting” with sports activities rights has been swirling for years but varied leagues proceed to ink landmark offers. For example, TKO only recently closed an enormous 10 yr, $5 billion deal to deliver WWE Uncooked to Netflix.
“For the higher half since we purchased the UFC, it’s simply been commentary about sports activities rights, the bubble, when’s it going to burst, when’s the cap coming,” Shapiro stated. “We definitely confronted a number of these headwinds on the WWE renewals. However I’ll simply remind you — the platforms are going to pay for premium content material and we’re blessed by having two nice premium content material properties within the WWE and UFC. When you have got premium content material and you’ve got a number of bidders, which clearly are on the market, and you’ve got a transfer from linear to digital however you continue to should hold linear alive, you’ve acquired a fairly strong market.
“Sports activities, stay sports activities particularly when you have got what we’ve got, which is quantity and yr spherical, we’re sitting at a extremely good place.”
Emanuel additionally addressed considerations over extra competitors dealing with the UFC forward of this TV take care of the PFL additionally having a house at ESPN and lately combining forces with Bellator MMA.
None of that considerations Emanuel or the powers-that-be at TKO as a result of they know unquestionably that the sorts of crowds the UFC attracts each in attendance and on tv can’t be matched by anyone else in the identical enterprise.
“Simply do your self a favor, take a look at the scores that simply occurred,” Emanuel stated hinting on the UFC Mexico Metropolis card versus the PFL vs. Bellator card from this previous weekend. “We’re proud of competitors. Not solely are the PFL and Bellator competitors however soccer’s competitors, basketball is competitors, video video games are competitors, there’s a number of competitors and there’s a number of competitors within the MMA house.
“That being stated, we carry out considerably higher than them because it pertains to the scores that occurred lately.”
Extra UFC and WWE Crossover Alternatives
A profitable UFC 298 occasion in Anaheim was adopted two days later by WWE Uncooked going down in the identical constructing, which is simply the tip of the iceberg for what TKO has deliberate for the 2 organizations within the coming years.
Simply after the merger was accomplished, WWE president Nick Khan teased “all-star TKO weekends” with the potential of placing on a Smackdown card on Friday adopted by a UFC occasion on Saturday after which a significant WWE occasion on Sunday or maybe an episode of WWE Uncooked that following Monday.
Add to that, UFC light-weight contender Michael Chandler made an look throughout WWE Uncooked the place he minimize a fiery promo geared toward Conor McGregor. This previous weekend at UFC Mexico Metropolis, WWE celebrity Rey Mysterio Jr. made an look and helped promote the occasion in Mexico.
“As you noticed in Mexico Metropolis, there was a WWE star there. As you noticed on the WWE occasion, [Michael] Chandler was there selling stuff,” Emanuel famous. “So there’s a number of crossover there and there’s some cross synergies that we acknowledge however there might be extra as a result of that was simply two of our occasions and there’s extra to come back.”
On the subject of a weekend lengthy takeover for a metropolis or an enviornment that includes occasions from each UFC and WWE, Emanuel stated that can positively occur however these plans will doubtless unfold in 2025.
