UFC claims multiple 'likely' bidders in line when FOX deal expires in 2018

The UFC’s seven-year partnership with FOX expires in 2018. When the time runs out, the promotion’s new owners expect they’ll be in a good position to get a better deal.

When bidding starts for the right to broadcast UFC content, they claim four bidders are “likely” to vie for the opportunity, according to an investor “deck” – or investor presentation – obtained by MMAjunkie that details the UFC’s business plans following its reported $4 billion sale.

The presentation, created in July prior to the deal’s finalization, is naturally bullish on the UFC’s future TV prospects and its place in the U.S. media rights landscape, It claims UFC content has helped its current partner outperform other networks.

As expected FOX, which also airs fights on FS1 and FS2, will make a play for keeping the UFC under its umbrella. But NBC, ESPN and Turner are also expected to be in the fold.

When the bidding starts, the presentation suggests additional leverage against bidders because of a “scarcity of meaningful sports rights.” Not until 2021 do a trio of sporting leagues – MLB, PGA and NHL – start shopping for new deals.

It also notes the U.S. and Hispanic rights have been bundled in the FOX deal and suggests “an opportunity” to separate them to “drive price and competition.”

To provide a foundation for the positive outlook, the UFC touts its strong performance in media-rights fees.

To provide a foundation for the positive outlook, the UFC touts its strong performance in media-rights fees.

In 2015, the promotion generated $462 million in revenue for “content” (fight footage).

Of that, approximately 28 percent ($129 million) was from domestic TV deals while 18 percent ($83 million) came from deals on the international market. Domestic and commercial pay-per-view still drove the majority of content revenue, approximately 51 percent ($236 million), while UFC Fight Pass lagged at three percent ($14 million).

Combining domestic and international TV revenue, the UFC was able to take in a significant amount of cash, which also provided a cushion for the promotion in a difficult time.

While PPV revenues were nearly cut in half by a rash of injuries in 2014, decreasing to $116 million from $212 million in 2013, the UFC’s non-PPV TV revenue increased from $104 million in 2013 to $118 million in 2014.

It doesn’t hurt that the UFC’s FOX deal comes with “escalators,” or yearly increases, that add to the bottom line. The presentation states a $140 million payout for 2016 will grow to $168 million by 2018.

Amid a rising trend in rights fees, the document claims the UFC will increase from .99 percent of the total U.S. sports market in 2016 to 1.31 percent in 2019.

All of these figures are, of course, a pitch to make the industry-leading MMA promotion look like a sure thing. The FOX deal in 2011 was touted as a huge advance in its history. The new owners claim things can get even better.

For more on the UFC’s upcoming schedule, check out the UFC Rumors section of the site.