Now that streaming giants like Amazon and Apple+ have dipped their toes in the world of live sports, these massive companies are reportedly seeking out more. According to an article from CNBC, a number of these companies could potentially acquire the rights to more ‘niche’ sports like UFC, WWE and Formula 1.
Before UFC signed an exclusive deal with ESPN, the combat sports company almost negotiated a deal with the network’s parent company Disney. According to a source cited in the article, Disney had negotiated terms with the combat sports giant to acquire the company for about $4.3 billion.
However, that deal eventually fell through because then-president Bob Iger thought the sport was “too bloody and violent” for Disney’s family orientated brand image. UFC was eventually bought by The Endeavor Group (then known as WME) back in 2016 for $4 billion. Two years later, ESPN snagged the TV rights, paying $1.5 million, with their streaming service also inking a $150 million per year deal to stream UFC fights.
After signing with the worldwide leader in sports, the UFC instantly increased their value to $7 billion according to UFC’s president Dana White. The deal is just another indication of the rising value for sports broadcasting rights which gives advisers a unique opportunity as more and more people are cutting the cord from cable but are still tuning in to watch their favorite teams and athletes.
LightShed analyst Rich Greenfield believes that instead of Disney paying for the UFC’s TV rights, it would’ve been a lot smarter to just buy the UFC outright rather than spending billions on licensing.
“Disney would have been far smarter to buy UFC than spend this much to license,” Greenfield said. “Now the costs are going way up. Owning a league makes a ton of sense.”