Inside the 48-Hour Deal: How UFC Secured a $7.7 Billion Partnership with Paramount

The UFC’s recent deal with Paramount and CBS, worth a staggering $7.7 billion, came as a shock to many—including UFC CEO Dana White. During his appearance on “The Pat McAfee Show,” White admitted he didn’t expect things to go this way. “But this is how it played out,” he said. “I love it. These guys are clearly smart and aggressive.”

Initially, Mark Shapiro, the TKO president and COO, aimed for a more limited deal, only securing the UFC Fight Night events. However, after Skydance Media took control of Paramount, everything changed swiftly; they finalized the entire UFC broadcast rights deal in just 48 hours. Instead of just featuring 30 UFC Fight Night events, Paramount+ will now show all UFC content, including the 13 key numbered events each year.

The most significant shift for fans is the gradual end of the UFC’s reliance on pay-per-view. Traditionally, since the first UFC event in 1993, pay-per-view has been central to its strategy, costing viewers around $79.99 per event on top of the ESPN+ subscription. With reported declines in pay-per-view revenue, this move seems wise. Shapiro referred to the pay-per-view model as “outdated.” He emphasized how appealing the new model would be, particularly to younger fans who prefer convenient access through streaming services like Paramount+ at just $12.99 a month.

Specifics on how UFC events will feature on CBS remain unclear. While Paramount+ will host all 43 UFC events annually, there is potential for the biggest numbered events to also air on CBS. Shapiro confirmed, “CBS will have simulcasts on many fights, likely all of the numbered events.”

Interestingly, there was surprise surrounding Paramount’s victory in acquiring the UFC rights, especially with speculation pointing to Netflix and ESPN. Paramount+ has been more known for dramas like “Yellowstone” rather than live sports. Nevertheless, it seems streaming platforms are increasingly recognizing the value of live sports to attract and retain subscribers. White noted that live viewership creates urgency that scripted content simply doesn’t offer.

In fact, a recent report from Deloitte found that 43% of sports fans prefer watching events live rather than on-demand. This growing trend highlights the importance of access to live broadcasts. As the landscape of sports broadcasting evolves, viewers can expect more changes in how they consume their favorite sports.

With this monumental shift, the UFC is diving into a new era. Fans are eager to see how these changes will enhance their viewing experience. The UFC’s partnership with Paramount marks a pivotal moment not just for the organization, but for the future of sports broadcasting.

For more insights on streaming platforms and their strategies, check out this Deloitte report.

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Mark Shapiro, UFC, Paramount, Dana White, broadcast rights