Paramount is upending the entire world of sports broadcasting! Most importantly, they got the US rights for TKO Group’s Ultimate Fighting Championship (UFC) for seven years, starting in 2026. This acquisition marks a major inflection point for Paramount. It’s looking to bolster its sports stable after recently merging with Skydance. Unusual in its size— $7.7 billion —the deal was remarkable in its rapidity too, negotiated in just 48 hours.
The current rights deal between Paramount and TKO Group expires in 2025. While still requiring approval, this clears the way for the new contract to go into effect. As part of the agreement, every single UFC fight and fight night will stream live exclusively in the United States. You can see them all on Paramount+. For the piece de resistance—Super Blocks. Additional events will be simulcast on CBS as well. This will improve the availability and accessibility of UFC content for millions more Americans.
TKO Group, owner of UFC, produces 43 live events annually, translating into nearly 350 hours of live programming. Paramount’s acquisition reflects the fact that sports rights are becoming more valuable and harder to come by. Paramount acquired only the TKO Group’s owned rights—their initial leadership only considered selling the 30 “Fight Night” events to Paramount. They quickly understood that getting the full UFC bundle was essential.
Mark Shapiro, TKO Group’s president and chief operating officer, spotlighted this new reality in sports broadcasting. He stated, “The pay-per-view model is a thing of the past,” reflecting a broader trend towards subscription-based viewing options that cater to contemporary audience preferences.
Ellison, who has been deeply involved in crafting the winning deal, shared his love for UFC on numerous occasions, identifying himself as a passionate fan. To be fair, with regards to both business and strategy, he communicated the strategic reasons for all UFC rights acquisition. He argued that the time to strike is now with sports broadcasting rights becoming more scarce in the years ahead.
“UFC is a unicorn asset that comes up about once a decade.” – Ellison
This agreement not only solidifies Paramount’s position in the competitive sports broadcasting market but enhances TKO Group’s relationship with a major distribution partner. U.S. UFC programming rights will be for sale on a per quarter basis. Beginning ten years from now, each year approximately one-third of these rights will become available.
Viewership of sports is changing quickly. With the ever-changing consumer landscape, this agreement positions both Paramount and TKO Group to resource and capitalize on today’s engaging content. Streaming is fast becoming the world’s most popular way to consume media. Paramount knows this change as well and understands agreeing to a robust slate of sports is all in.