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Is UFC's asking price too high for ESPN?
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Is UFC's asking price too high for ESPN?

Mark Shapiro wants to double the media rights fee, but ESPN can't double PPV prices.

Today’s free podcast features a very big topic of discussion.

The UFC’s seven-year media-rights deal with Disney’s ESPN is coming to an end and, “according to people with knowledge of the matter” TKO is looking to get $1 billion per year for the rights.

Bloomberg reported that “the UFC would like to remain in business with ESPN” but it’s looking for a lot more than the $450 million/year they negotiated in the old deal.

“We started on ESPN seven years ago and had a rocky relationship in the beginning,” UFC Chief Executive Officer Dana White explained on Bloomberg TV in November. “But now I couldn’t be happier at ESPN, it’s a great relationship and I wouldn’t mind staying with them.”

TKO CEO Ari Emanuel and President Mark Shapiro are taking the lead on the negotiations and believe they have at least four or five prospective buyers for the rights, the people said. They include Amazon.com Inc., Netflix Inc. and Warner Bros. Discovery Inc., which just lost the rights to the NBA, as well as Google’s YouTube, at least for the pay-per-view matches.

In today’s MMA Draw Podcast, I’ll talk about the prospects for a new ESPN deal as well as why I think Netflix is in prime position to get the lion’s share of the UFC streaming rights, if not the whole package.

Related content: Why UFC fans need to pay attention to WWE on Netflix

I also discuss “the Netflix flywheel”, how it’s derived from Walt Disney’s original 1957 business plan (see below), how Disney makes money off of streaming sports and much more.

Walt Disney's original diagram of his 1957 business plan

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Nate Wilcox is Editor-in-Chief of The MMA Draw newsletter on Substack.

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