The UFC just got a little more profitable.
It makes sense that cable companies make their money off pay-per-view by taking a cut of the sales, but you might be surprised to know how big of a cut they get. Up until recently, the UFC has had to split revenue with the big providers 50/50. But according to the Sports Business Journal, they’ve just renegotiated that number to a much more reasonable 70/30 split in favor of the fight promotion.
How’d this all come about? It’s due to the UFC’s status as one of the last companies standing in the pay-per-view market. Porn is everywhere on the internet. The WWE switched to their own subscription network. And major boxing pay-per-views are happening less and less often, especially with new streaming networks like DAZN snapping up rights.
In a detailed breakdown on MMAFighting.com, PPV insider Dave Meltzer broke down the numbers and estimated the UFC should pull in around $ 65 million extra a year based on current PPV figures. That’s money that goes right into the UFC’s pocket, as the few fighters who receive a cut of PPV sales make a set price per unit sold.
That’s not an insignificant sum. Let’s compare it to the UFC’s new broadcast deal which sees ESPN pay UFC $ 1.5 billion over 5 years. Keep in mind the UFC has to produce 30 events a year for that money. Over that same 5 year period, the UFC could take in $ 325 million off this one simple change, with no extra work or expense involved.
Chalk that up as another win for UFC parent company Endeavor. And as another sign that UFC fighters really, really, really need to unionize in order to get themselves a piece of this action.