Los Angeles – Paramount Secures $7.7 Billion UFC Streaming Rights Deal
Paramount has announced a substantial seven-year media rights agreement with the Ultimate Fighting Championship (UFC), valued at $7.7 billion. The terms of the deal grant Paramount+ exclusive streaming rights for all UFC events in the United States, commencing in 2026. This major contract includes 13 numbered events and 30 “Fight Nights,” with select events also being simulcast on CBS.
This media rights deal follows closely on the heels of a merger between Paramount and Skydance Media, which received approval just days before the announcement. With an average annual value of approximately $1.1 billion, the agreement places UFC media rights revenue in close proximity to other prominent sports leagues, such as Major League Baseball at $1.8 billion and the Olympics at $1.3 billion. The UFC’s contract will notably surpass the media rights income of the NHL ($635 million) and the PGA Tour ($700 million).
The incoming deal nearly doubles UFC’s current media revenue generated through their agreement with ESPN, which is estimated at $350 million annually and is set to run until 2025. Under the new arrangement with Paramount, UFC plans to eliminate the pay-per-view model previously used in its ESPN deal. Mark Shapiro, president of TKO Holdings, indicated that this shift aims to move away from the costly pay-per-view system, which has led to increased piracy among fans looking to watch matches.
Key Insights and Implications
The magnitude of this deal reflects UFC’s strategic direction as well as Paramount’s ambition of enhancing its content library and driving subscriber growth. As of July 31, Paramount+ reported a subscriber base of 77.7 million, which remains significantly lower than that of its competitors, Netflix and Amazon Prime Video. The UFC is viewed as a valuable asset, given its dedicated fanbase, which Paramount seeks to leverage to expand its audience.
UFC also intends to continue selling its international media rights independently through IMG, projected to generate an additional $250 million annually. Notably, UFC maintains control over its broadcast productions, which allows for the preservation of the integrity of its events, unlike many other sports leagues.
Industry Reactions
Following the announcement of the media rights deal, the stock of TKO Holdings, the UFC’s parent company, surged by over 10%. In contrast, Paramount’s stock experienced a slight dip. The deal underscores a desire for increased market engagement and subscriber growth, as articulated by Paramount CEO David Ellison, who emphasized the importance of sports rights in the broader context of the company’s digital strategy.
Lastly, Dana White confirmed that plans are underway to host a UFC event at the White House around July 4, 2026, which may also be broadcast on CBS, showcasing the organization’s commitment to increasing visibility and reach.
Background Context
The UFC has made significant strides in the sports entertainment industry, staking its claim as one of the leading organizations in mixed martial arts. This latest agreement not only reflects the sport’s growing popularity but also signifies a shift in how broadcast arrangements are being structured to appeal to modern audiences.
The merger with Skydance Media and the innovative media rights deal positions Paramount to utilize the UFC’s popularity in a way that enhances both organizations, challenging competitors in the streaming landscape. This significant financial commitment demonstrates a willingness to invest in lucrative content while navigating a rapidly changing media environment.