Paramount secures UFC deal for 7 year contract.
Paramount has made its first major move since merging with Skydance. The entertainment giant has struck a massive deal with TKO Group to secure U.S. rights to the UFC for seven years, starting in 2026. The agreement is valued at $7.7 billion, averaging $1.1 billion annually.
The deal covers 13 top-tier UFC events and 30 “Fight Nights” each year. All matches will stream on Paramount+ in the U.S., with select events also airing on CBS.
No More Pay-Per-View for UFC Fans
In a major shift, Paramount will drop the pay-per-view model. UFC fans will access all premium fights through a Paramount+ subscription at no extra cost. This marks a departure from ESPN+, which charged additional fees for certain events.
Mark Shapiro, TKO’s president and COO, called the pay-per-view format “outdated.” He said the goal is simple — make UFC a one-stop destination for fans. “If I sign up for Paramount+ at $12.99 a month, I get it all? That’s the message we want to push,” Shapiro added.
From ESPN to Paramount
Disney’s ESPN has been paying about $500 million annually for UFC rights in a deal ending in 2025. Paramount’s offer is more than double that. TKO initially planned to split rights between different media partners, selling “Fight Nights” to Paramount and numbered events elsewhere.
But when the Skydance-Paramount merger closed, the two sides finalized the full package deal in just 48 hours.
A Strategic Sports Rights Play
David Ellison, Paramount’s new CEO after the Skydance merger, sees UFC as a rare opportunity. “UFC is a unicorn asset that comes up about once a decade,” Ellison said. He noted that top sports rights are scarce in the near future. Formula 1 is likely going to Apple, and Major League Baseball won’t repackage media rights until 2028.
With 43 annual UFC events totaling 350 hours of live programming, the sport keeps subscribers engaged year-round. Unlike seasonal sports, UFC offers consistent content, reducing subscription cancellations.
WWE Deal Adds to TKO’s Busy Week
TKO Group, formed by merging UFC and WWE in 2023, has been equally active. Just last week, it signed a $1.6 billion, five-year agreement with ESPN for WWE’s premium live events.
TKO CEO Ariel Emanuel said UFC content has proven to boost subscriptions, aligning with Ellison’s streaming strategy. “We’ve shown before that we drive signups, and that’s key for Paramount+ growth,” Emanuel said.
Global Rights Could Be Next
Paramount also has its eye on UFC’s international rights. These rights come up for renewal on a rolling basis, with roughly one-third available each year. Currently, UFC events are broadcast in over 210 countries.
The new deal gives Paramount a 30-day exclusive negotiation window for each market as rights expire. Shapiro said the company aims to pair U.S. rights with international coverage, strengthening the UFC brand worldwide.
The Road Ahead for Paramount and UFC
This acquisition signals a bold shift for Paramount. By integrating UFC into Paramount+, it eliminates pay-per-view barriers, potentially attracting younger, tech-savvy fans.
Ellison’s sports rights strategy focuses on rare, high-demand assets with year-round appeal. UFC fits that bill, offering continuous live events and a global fan base. For TKO, the deal delivers a lucrative partnership and expanded reach.
The move also positions Paramount+ as a competitive streaming hub for sports, adding to its entertainment portfolio. With UFC’s strong brand recognition and loyal following, the platform could see a significant surge in subscriptions starting 2026.
As Shapiro summed it up: “We’re getting the brand, we’re getting the reach, and they’ll get the signups.”
