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What's the story?
UFC could be getting a huge deal to help them out in the coming years from a financial perspective at least.
For the longest time, UFC has been a customer of the Pay-Per-View business. However, now, with more customers leaving the market, UFC might have the perfect deal on their hands when it comes to the PPV split.
This deal according to reports by MMA Fighting, could be worth $65 Million.
In case you didn't know...
Traditionally the profits from the proceeds of the pay-per-view buys were split between the UFC and the Cable and Dish Providers 50-50.
In fact, when they had first come to the market, UFC had a 40-60 split in favour of the providers. Things improved for the Mixed Martial Arts company as their popularity slowly but surely increased.
Now, however, things have changed quite a bit.
But, what could have happened to cause this change?
The heart of the matter
UFC and the cable and dish providers' most recent deal has them splitting the pay-per-view proceeds at 70-30 in favour of UFC.
Boxing's biggest draw who is currently active, Canelo Alvarez has now moved to DAZN to be exclusive to them. Due to the money being offered by streaming providers like DAZN, money from boxing pay-per-views may be on the decline in the coming years.
With Alvarez, UFC remains the biggest source of buys for pay-per-views on a regular basis.
While WWE is extremely popular, since the introduction of the much cheaper WWE Network, the PPV business which they provide has taken a hit.
According to MMA Fighting, if buys for UFC pay-per-views remain constant next year as well, they will do $268 Million in profits, which is an estimated increase of $65 Million at least.
What's next?
The 70-30 deal gives UFC reason to stick with cable and dish providers instead of switching to other avenues.
This will be a huge boost for UFC in the coming year.
The next UFC pay-per-view the company has on offer is none other than UFC 231, featuring Max Holloway defending his UFC Featherweight Title against the undefeated Brian Ortega.
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