Paramount has made its first big move following its merger with Skydance, striking a major agreement to obtain the U.S. broadcasting rights for the Ultimate Fighting Championship (UFC) from TKO Group.
The deal, valued at $7.7 billion over a seven-year period starting in 2026, marks a massive shot across the bow of the sports world by Paramount’s new leadership.
A screenshot from UFC 313 on ESPN+ – YouTube, ESPN MMA
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Under the terms of the contract, Paramount will gain access to UFC’s complete lineup of events, including 13 high-profile pay-per-view-style cards and 30 additional Fight Night shows each year.
This totals 43 live events annually, amounting to around 350 hours of programming.
All of these will be available exclusively on Paramount+ for streaming in the United States, with some also airing simultaneously on the CBS broadcast network. The payment structure is back-loaded, meaning Paramount will pay below the $1.1 billion annual average in the initial years and more toward the end.
Joe Rogan conducts an octagon interview at UFC 313 – YouTube, UFC
A key change in this arrangement is the shift away from the traditional pay-per-view system that has been in place with Disney-owned ESPN. Currently, ESPN charges extra for premium UFC events on its ESPN+ platform, but Paramount plans to include everything in the standard subscription fee, without any additional costs for viewers.
ESPN’s existing contract, which costs them about $500 million per year for a five-year term, is set to conclude at the end of 2025.
TKO Group’s President and COO, Mark Shapiro, highlighted the obsolescence of pay-per-view in today’s market, comparing it to outdated practices like buying movies on satellite TV.
He emphasized the appeal of a simple subscription model for younger audiences, particularly those in less urban areas, who can access the full UFC schedule for just the cost of Paramount+ at $12.99 monthly.
This announcement comes amid a flurry of activity for both companies. Paramount finalized its merger with Skydance last Thursday, ushering in David Ellison as its new CEO.
The Rock on Monday Night RAW on Netflix – YouTube, WWE
Meanwhile, TKO—which formed from the 2023 merger of UFC and WWE—recently sealed a $1.6 billion, five-year pact with ESPN for WWE’s top events. TKO CEO Ariel Emanuel noted that their partnerships, like the one with ESPN, have proven effective in boosting subscriber numbers, aligning with Ellison’s vision for growth.
Initially, TKO anticipated splitting the UFC rights, selling the Fight Nights to Paramount and the premium events elsewhere. However, the deal was rapidly finalized in just two days after the merger closed.
Ellison, a self-proclaimed UFC enthusiast, viewed acquiring the full package as essential due to the limited availability of premium sports properties in the near future. With options like Formula 1 potentially heading to Apple and MLB not renegotiating until 2028, opportunities like UFC are rare.
A screenshot from UFC 313 on ESPN – YouTube, ESPN MMA
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The year-round nature of UFC events makes it particularly attractive for streaming services, as it encourages consistent subscriber retention compared to seasonal sports. Looking ahead, Paramount has expressed interest in pursuing UFC’s international rights, which renew in phases across over 210 countries. They will enjoy a 30-day exclusive negotiation period for each market as rights become available.
Shapiro summed up the mutual benefits, stating that Paramount gains a strong brand and broad reach, while TKO expects increased sign-ups for the streaming service.
How do you feel about Paramount getting the UFC rights from Disney ESPN? Sound off in the comments and let us know!
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Unlike ESPN+ grabbing the NFL and WWE deals, this might actually make money for Paramount+ because, as the article states, UFC is year-round. Once football season is over, once the current season of pro-rasslin’ drama is released and the next is still in production, there won’t be any reason for people to remain on ESPN+.
Churn! It’s not just for butter and ice cream anymore.