UnderGround Forums No takers for UFC’s new media right deal

25 days ago
6/15/14
Posts: 1031

Real talk, not cheery speculation

*

Currently, the new asking price of $450M per year is a stiff increase that is not garnering a lot of interest at this point.

 

The UFC is looking to increase its rights fee to $450 million per year. Traditional media companies appear to be weary of the hefty ask.

 

With the WWE’s media rights deal up around the same time as the UFC, re-upping with Fox may be tougher than expected. 

 

http://mmapayout.com/2017/11/as-of-now-no-takers-for-ufcs-new-media-right-deal/

 

25 days ago
7/2/09
Posts: 4132

Well this explains why we haven't seen MMALOGIC prancing around here this past week.  Can't wait for him to come back and explain to us all how they've found a new way to screw the fighters, and that this will be the best thing ever... and don't forget, Bellator's numbers suck.

 

In all seriousness, I hope they get something worked out.  The multiple buyer model sounded like it would make them a fair bit of money.  Can't say I was excited about the idea of needing access to more networks, though.

25 days ago
9/7/04
Posts: 28548
25 days ago
2/24/10
Posts: 11268

If I had to bet, I'd say they're staying with Fox.  Fox Sports swapping the UFC for WWE is interesting, but a bit extreme.  I think FS1's programming needs the UFC just as much as the UFC needs a big broadcast media company like NewsCorp for a distributor.  Especially this summer with Fox Sports covering the World Cup. 

( https://www.si.com/tech-media/2017/10/11/usa-world-cup-elimination-fox-sports-coverage-mexico-el-tri ) 

Spoiler alert, the US didn’t make the cut.

The UFC is obviously not going to get their asking price.  That asking price was made public a while back when Ronda, JJ and Conor were all still (seemingly) active in the UFC.  I think a major restructuring will happen on how the UFC presents its content in the US as well.  Again if I had to bet, less PPVs and more “prime” matchups on cable.  Also, incorporating Fight Pass into the deal where its content is licensed to the distributor’s online/app, or possibly made available for broadcast.

 

Making UFC’s content exclusive to a streaming only provider will limit their reach, and the people at WME know this very well.  Them shopping the brand around is often just taking meetings to make their product more appealing in order get leverage with potential bidders who actually want to make the deal.

 

Lastly, it is REALLY late in the calendar year to announce a new distribution partner and roll out a slew of new programming.  I was actually expecting something to be announced in October at the latest, the closer we get to 2018 the more I speculate that they’ll stay with Fox/NewsCorp.

25 days ago
8/17/08
Posts: 14480

No interest at 450m a year... at least not from broadcast and cable networks.

fox is in for 200m/yr... all they need is one more player at around the same and they’ll get very close to the 450m target by reducing the ppv’s to 4 a year, expanding the tv package and splitting it between 2 networks.

theyll increase the ppv price to maintain yearly ppv revenue while significantly increasing the value of the tv package.

they just need another player willing to commit around 200m/yr.

25 days ago
8/17/08
Posts: 14481

Moreover wwe contract was up just a few years ago and sports networks had no interest and this is when they were throwing around money left and right.

fox is behind this article trying to keep the bidding down.

25 days ago
9/7/04
Posts: 28554

^ you seem desperate, Logic

25 days ago
12/9/13
Posts: 20241

WHAHHAHAHAHAHHA

25 days ago
12/9/13
Posts: 20242
MMALOGIC -

No interest at 450m a year... at least not from broadcast and cable networks.

fox is in for 200m/yr... all they need is one more player at around the same and they’ll get very close to the 450m target by reducing the ppv’s to 4 a year, expanding the tv package and splitting it between 2 networks.

theyll increase the ppv price to maintain yearly ppv revenue while significantly increasing the value of the tv package.

they just need another player willing to commit around 200m/yr.

so, now fans even needs to subscribe to more tv channels/packges for watching the ufc? like it wasn't divided enough

25 days ago
12/28/14
Posts: 994
MMALOGIC -

No interest at 450m a year... at least not from broadcast and cable networks.

fox is in for 200m/yr... all they need is one more player at around the same and they’ll get very close to the 450m target by reducing the ppv’s to 4 a year, expanding the tv package and splitting it between 2 networks.

theyll increase the ppv price to maintain yearly ppv revenue while significantly increasing the value of the tv package.

they just need another player willing to commit around 200m/yr.

No way they go down to 4 PPVs a year. Even at $80 a pop itll be a huge loss.

I can see them cytting down but not that much.
25 days ago
8/17/08
Posts: 14482
fade2007 -
MMALOGIC -

No interest at 450m a year... at least not from broadcast and cable networks.

fox is in for 200m/yr... all they need is one more player at around the same and they’ll get very close to the 450m target by reducing the ppv’s to 4 a year, expanding the tv package and splitting it between 2 networks.

theyll increase the ppv price to maintain yearly ppv revenue while significantly increasing the value of the tv package.

they just need another player willing to commit around 200m/yr.

No way they go down to 4 PPVs a year. Even at $80 a pop itll be a huge loss.

I can see them cytting down but not that much.

Contracts with ppv distributors also expire at the same time the fox deal expires... I’m sure they are going to negotiate a better split.

at 80 to 100 bucks it would be a wash or more revenue with only 4 ppv’s compared to what they are making now.

plus all the cost savings of having to promote 4 ppv events instead of 13.

they are cutting the ppv’s down.. either 6 or 4... depending on how aggressive the tv negotiations get.

i believe it’s more likely to end up at around 4.

they just need one more bidder at around 200m/yr.

Edited: 25 days ago
8/17/08
Posts: 14483
Morpheus1976 -
MMALOGIC -

No interest at 450m a year... at least not from broadcast and cable networks.

fox is in for 200m/yr... all they need is one more player at around the same and they’ll get very close to the 450m target by reducing the ppv’s to 4 a year, expanding the tv package and splitting it between 2 networks.

theyll increase the ppv price to maintain yearly ppv revenue while significantly increasing the value of the tv package.

they just need another player willing to commit around 200m/yr.

so, now fans even needs to subscribe to more tv channels/packges for watching the ufc? like it wasn't divided enough

Turner and nbc are on the same package as fs1

Edited: 25 days ago
1/12/05
Posts: 59773

The UFC is like a hundred dollar hooker trying to work the casino bar for $500, but everybody knows she’s a hundred dollar hooker. One time she got a guy for $200, but everybody heard how bad that was 

25 days ago
9/11/11
Posts: 1433
I could be wrong, but unless they announce some plan to make these 4 PPV's "tent pole events" ala Bellator with multiple title/#1 contender fights, I don't see it going well. Luckily for WME that GSP felt like returning and that he actually won! Now they have two big draws in him and McGregor.

I guess I could see this working, but they're gonna have to do more to promote other champs. The mishandling of Stipe Miocic as heavyweight champ is depressing. I don't wanna hear all that "he's boring and uncharismatic" either, his last post-fight interview was hilarious, and he comes off great on camera in all of the behind the scenes stuff the UFC puts together. How has he not fought since KO'ing JDS? Because the UFC doesn't want to pay a multi-time, exciting KO machine what they're worth.
Edited: 25 days ago
8/17/08
Posts: 14484

This is the seed...

as soon as they have another player willing to come in at around fox’s 200m/yr they are going to say to each one of them we are at 450 and you are at 200 so here’s what we’re gonna do:

we’re gonna split the package but 

we’ll replace tuf with a 3 hour live show (contender series)

we’re gonna reduce the number of ppv’s 

increase the number of fight nights

and give you title fights which will increase the value of the programming significantly.

this is how they’re gonna get close to their 450m/yr Target... instead of 450m from one they will get around 200m from 2.

they will increase the ppv price so ppv revenue remains the same or increases.

they just need one more player to come in at around 200m/yr.

 

25 days ago
9/11/11
Posts: 1434
MMALOGIC -

This is the seed...

as soon as they have another player willing to come in at around fox’s 200m/yr they are going to say to each one of them we are at 450 and you are at 200 so here’s what we’re gonna do:

we’re gonna split the package but 

we’ll replace tuf with a 3 hour live show (contender series)

we’re gonna reduce the number of ppv’s 

increase the number of fight nights

and give you title fights which will increase the value of the programming significantly.

this is how they’re gonna get close to their 450m/yr Target... instead of 450m from one they will get around 200m from 2.

they will increase the ppv price so ppv revenue remains the same or increases.

they just need one more player to come in at around 200m/yr.

 

Any leads on the who could be the 2nd buyer? I've heard ESPN before, but they seem pretty all in on TR boxing at the moment, plus the way they've been laying off onscreen talent. Hopefully it's not like NBC Sports, that's seems to be where sports go to die.
25 days ago
8/17/08
Posts: 14485

By the way... wwe is wme’s client... wme negotiates wwe’s Tv deals.

25 days ago
12/9/13
Posts: 20246
MMALOGIC -
fade2007 -
MMALOGIC -

No interest at 450m a year... at least not from broadcast and cable networks.

fox is in for 200m/yr... all they need is one more player at around the same and they’ll get very close to the 450m target by reducing the ppv’s to 4 a year, expanding the tv package and splitting it between 2 networks.

theyll increase the ppv price to maintain yearly ppv revenue while significantly increasing the value of the tv package.

they just need another player willing to commit around 200m/yr.

No way they go down to 4 PPVs a year. Even at $80 a pop itll be a huge loss.

I can see them cytting down but not that much.

Contracts with ppv distributors also expire at the same time the fox deal expires... I’m sure they are going to negotiate a better split.

at 80 to 100 bucks it would be a wash or more revenue with only 4 ppv’s compared to what they are making now.

plus all the cost savings of having to promote 4 ppv events instead of 13.

they are cutting the ppv’s down.. either 6 or 4... depending on how aggressive the tv negotiations get.

i believe it’s more likely to end up at around 4.

they just need one more bidder at around 200m/yr.

this is total purple pants bullshit

25 days ago
12/9/13
Posts: 20247
GrilliamG - I could be wrong, but unless they announce some plan to make these 4 PPV's "tent pole events" ala Bellator with multiple title/#1 contender fights, I don't see it going well. Luckily for WME that GSP felt like returning and that he actually won! Now they have two big draws in him and McGregor.

I guess I could see this working, but they're gonna have to do more to promote other champs. The mishandling of Stipe Miocic as heavyweight champ is depressing. I don't wanna hear all that "he's boring and uncharismatic" either, his last post-fight interview was hilarious, and he comes off great on camera in all of the behind the scenes stuff the UFC puts together. How has he not fought since KO'ing JDS? Because the UFC doesn't want to pay a multi-time, exciting KO machine what they're worth.

they sure lowball Stipe on multiple levels

25 days ago
8/17/08
Posts: 14486
GrilliamG -
MMALOGIC -

This is the seed...

as soon as they have another player willing to come in at around fox’s 200m/yr they are going to say to each one of them we are at 450 and you are at 200 so here’s what we’re gonna do:

we’re gonna split the package but 

we’ll replace tuf with a 3 hour live show (contender series)

we’re gonna reduce the number of ppv’s 

increase the number of fight nights

and give you title fights which will increase the value of the programming significantly.

this is how they’re gonna get close to their 450m/yr Target... instead of 450m from one they will get around 200m from 2.

they will increase the ppv price so ppv revenue remains the same or increases.

they just need one more player to come in at around 200m/yr.

 

Any leads on the who could be the 2nd buyer? I've heard ESPN before, but they seem pretty all in on TR boxing at the moment, plus the way they've been laying off onscreen talent. Hopefully it's not like NBC Sports, that's seems to be where sports go to die.

Nbc and turner are the 2 most likely... espn is a wild card.

espn is preparing to lose Monday night football so they are still buying cheap content... 200myr is pretty affordable programming so who knows.

foxs number of 200m is out there now so whoever is willing to commit around the same will step forward.

25 days ago
1/1/01
Posts: 43110

No secret that internally WME knows they aren't getting anywhere close to 400mil +

25 days ago
12/9/13
Posts: 20248
MMALOGIC -

This is the seed...

as soon as they have another player willing to come in at around fox’s 200m/yr they are going to say to each one of them we are at 450 and you are at 200 so here’s what we’re gonna do:

we’re gonna split the package but 

we’ll replace tuf with a 3 hour live show (contender series)

we’re gonna reduce the number of ppv’s 

increase the number of fight nights

and give you title fights which will increase the value of the programming significantly.

this is how they’re gonna get close to their 450m/yr Target... instead of 450m from one they will get around 200m from 2.

they will increase the ppv price so ppv revenue remains the same or increases.

they just need one more player to come in at around 200m/yr.

 

its all in somebody's head, but there are no numbers supporting this

25 days ago
2/22/13
Posts: 1175

Whatever spin you want to put in this, it's undeniably a clear indictment of how the UFC has progressed since the original Fox deal. Carve the deal up; lower PPVs; more reality TV; throw in Fight Pass as sweetener. None of this was in the script:

I have no doubt they'll get their 400mil somehow, but it won't come as easy as they thought it would, and it'll come at an unforeseen cost.

WME can't honestly say what all these changes will mean for the sport. The PPVs have always been the backbone to their business (not just from a financial POV), so to suddenly have them reduced (if any of this is in fact true) could be a key moment for the sport.

Less PPVs is a logical step, but that's only because they physically don't have enough talent to fill them. If the sport has blossomed since the original Fox deal, they should have enough stars/interest to keep those 12 main events per year AND do all the other stuff (including getting an easy TV deal) but they don't (and can't).

Either way, regardless of where they THINK they are as a sport, the comparisons to other mainstream sports has always been laughable. They are a business, who for the last five years, have been desperately trying to run before they can walk.

Money needs to be made at any cost and it's desperate times.

25 days ago
1/1/01
Posts: 8506
MMALOGIC -

No interest at 450m a year... at least not from broadcast and cable networks.

fox is in for 200m/yr... all they need is one more player at around the same and they’ll get very close to the 450m target by reducing the ppv’s to 4 a year, expanding the tv package and splitting it between 2 networks.

theyll increase the ppv price to maintain yearly ppv revenue while significantly increasing the value of the tv package.

they just need another player willing to commit around 200m/yr.

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25 days ago
10/8/07
Posts: 9452
What exactly does the wwe have to do with the ufc TV deal? No major sports network is going to be shopping for a deal with the wwe lol. And USA is desparate for content, which is why they force WWE to do 3 hours instead of 2 on Mondays. There's literally nothing on USA except for wrestling and reruns of NCIS and law and order, and that obviously gay guy forcing his family to be on TV.