Internet Explodes over UFC’s New $7.7 Billion Deal with Paramount: “God Has Done Miracles”

With dropping pay-per-view sales on ESPN with measly setup, UFC opts for $7.7B broadcast deal with Paramount+.

Internet Explodes over UFC’s New $7.7 Billion Deal with Paramount: “God Has Done Miracles”

UFC signs record deal with Paramount (Source: X)

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UFC CEO Dana White has confirmed that the promotion’s major cards will no longer be under the pay-per-view model at Stateside. This comes in light of an exclusive ten-figure broadcast deal with Paramount CBS, which will see live events streamed in new light.

UFC has had that payment-only webcast/private telecast fight model for 318 whole offerings. The UFC 319 PPV event, the 28th calendar event this year, is next on the docket. With the exclusive broadcast rights deal with ESPN coming to an end this year, everything is about to switch up.

Dana White announced the matter today on his socials; a New York Times article followed, collaborating the deal with Paramount CBS. According to a press release from Skydance Corporation, the parent for Paramount, the deal is worth $7.7 billion for a span of seven years.

The 13 UFC pay-per-view events each year, along with 30 additional Fight Night events, will now stream on Paramount+. CBS, Paramount’s flagship network, will also simulcast additional live events, perhaps UFC BJJ, FIGHTPASS, and so on can find a new home in the future as well. Here is what the UFC boss had to say on socials:

This historic deal with Paramount and CBS is incredible for UFC fans and our athletes…for the first time – fans in the US will have access to all UFC content without a Pay Per-View model, making it more affordable and accessible to view the greatest fights on a massive platform. This deal puts UFC amongst the biggest sports in the world. The exposure provided by the Paramount and CBS networks under this new structure is a huge win – for our athlethes, for us; for anyone who wathces…

Dana White said (H/T: picture transcript from @danawhite account on X)

The price of the United States’ PPV broadcast model has steadily hiked to $80 — that too before ESPN+ subscription costs to order it. The control costs were grating on fans. The ESPN+ platform gained a reputation for being less reliable than pirate streams. From a stock set of $59.99 at launch to the current $79.99 cost in 2023, the hike inadvertently caused more and more piracy.

So, there was already some discontent on the matter. Mark Shapiro, the President and Chief Operating Officer of TKO Group, was interviewed by CNBC. He billed PPV as an old model with major combat sports, or any sports for that matter, moving out of the format. Hence, despite Endeavor’s $2.670-$2.745B haul coming from the ESPN partnership, the promotion is moving on.

Fight fans react to new deal, scrapped PPV model for UFC

A wide variety of MMA events are available, including UFC Fight Night Live, Shooto Brazil, Cage Warrior FC, and Fusion Fighting Championship. There are FIGHTPASS Invitational grappling events, DWCS, and upcoming sections of UFC Fight Pass Invitational BJJ contracts. However, despite the variated product line, the blistering $79.99 and control costs under ESPN broadcast left a bad taste.

Fans react to end of costly ESPN PPVs and UFC moving to Paramount CBS
Fans react to end of costly ESPN PPVs and UFC moving to Paramount CBS (Source: X)

Subsequently, it just wasn’t fans who were dejected. The UFC wanted better streaming services while ESPN wanted better quality of product. During a viral ‘NY Post Sports’ Podcast sitdown, there was some spotlight shed on how ESPN and UFC were driving each other into a bad marriage.

Top stars like former champ Aljamain Sterling and Stephen Thompson were relegated to the prelims so that more eyeballs watched it on ESPN 2. Watering down top contenders, fans also felt low-order WMMA fights on main card failed to produce jazzy finishers that their spots warranted. So the premier promotion has wanted out of ESPN for a while with a failing product in the cocktail.

Additionally, a costly cocktail it was, but no more. The days of fans purchasing such stuff, clocking in at $79.99 each, are over. Paramount has not disclosed the pricing strategy or if existing structures will be maintained. Nevertheless, there is an optimistic outlook that circumstances will improve. Here is what fans think of the changes.

In the U.S., a Paramount+ subscription ranges from $7.99 per month for ad-supported plans. It balloons to $12.99 per month for ad-free plans that include Showtime. Reduced rates are offered for yearly memberships. Safe to say, fans are content on the matter. A prominent reaction (@_KoreanJesus) even quipped that “God has done miracles,” with this new setup.

Per Paramount’s press release, the annual ESPN pay of $500 million increases to $1.1 billion in annual revenue with linear streaming. It’s nowhere near the mega one-year $10 billion that the NFL has as a record-holder. However, it does, in comparison, graze media rights deals of leagues like the NBA, worth north of $2.5 billion, and the $1.5 billion annually for MLB broadcast rights.

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