Days after completing its merger with Skydance, Paramount has acquired exclusive U.S. rights to TKO Group’s UFC for seven years starting in 2026. The deal, valued at $7.7 billion, averages $1.1 billion per year and covers UFC’s entire slate of 13 premium numbered events and 30 “Fight Nights” annually. All content will stream on Paramount+, with select events simulcast on CBS. Payments will be weighted, with lower amounts in the early years and higher ones later in the contract.
A Shift Away from Pay-Per-View
Paramount’s deal eliminates the pay-per-view model previously used for certain UFC events on ESPN+. Instead, subscribers to Paramount+ will have access to the full UFC lineup at no additional charge. TKO Group president and COO Mark Shapiro said this approach makes the sport more accessible, particularly to younger fans, calling the pay-per-view model “outdated” and “antiquated.” ESPN’s existing rights deal with UFC, worth about $500 million annually, will expire at the end of 2025.
The agreement was finalized just two days after Paramount officially transitioned control to Skydance Media under CEO David Ellison. TKO, which also signed a five-year, $1.6 billion U.S. rights deal with ESPN for WWE premium events last week, originally planned to split UFC rights between multiple partners. Once the Skydance merger closed, negotiations for the full package with Paramount were completed in just 48 hours.
A Rare Asset in the Sports Market
Ellison said acquiring the full UFC package was critical given the scarcity of premium sports rights expected to become available in the near future. With Formula 1 likely going to Apple and Major League Baseball not reorganizing its rights until 2028, UFC stood out as a “unicorn asset” that emerges only about once a decade. He also cited UFC’s year-round schedule as a key driver for subscriber retention, with 43 live events and roughly 350 hours of programming annually.
Paramount also intends to pursue UFC’s international rights, which come up for renewal on a rolling basis, with about one-third available each year. UFC is currently broadcast in more than 210 countries, and Paramount will have a 30-day exclusive negotiation period for each territory as its rights expire.
Why This Is a Game-Changer for Streaming Sports
This deal could mark a turning point for live sports streaming. By bundling premium UFC events into a standard subscription, Paramount is betting on long-term subscriber loyalty over short-term pay-per-view revenue. If it works, this model could pressure other sports leagues to rethink their distribution strategies — and it could put serious competitive heat on ESPN and other traditional sports broadcasters.
Featured image credit: Wikimedia Commons
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