នាយកប្រតិបត្តិ Endeavour លើអ្នកដេញថ្លៃសិទ្ធិ UFC នាពេលអនាគត៖ 'ខ្ញុំកំពុងញញឹម'

Endeavor CEO Ari Emanuel participated in a fireside chat at the MoffettNathanson Media & Communications Summit yesterday and shared an outlook in stark contrast to the recent market turmoil, especially for the company’s premier asset, the UFC. While the discussion mostly revolved around other parts of the Endeavor business – representation, events and experiences, sports betting, etc. – a few notable points were made regarding the UFC’s business performance.

The promotion is in currently in middle of a seven-year exclusive domestic broadcasting deal with ESPN where weekly Fight Night shows are aired on the ESPN family of networks and monthly pay-per-view (PPV) events can only be purchased on ESPN+. “Locked in,” as Emanuel put it, with three-and-a-half years remaining on the deal set to expire at the end of 2025.

Addressing a room of sell-side analysts, Emanuel was asked how they should think of the opportunity in the UFC’s next domestic broadcast deal. “On our international side, if that’s an indication, we’re up over 100% with all of our deals,” Emanuel said while emphasizing the appetite for sports content in the current marketplace. “There’s Amazon
AMZN
, ផ្លែប៉ោម។
Apple បាន
, Warner, Paramount, Peacock all wanting sports. I have now one of the majors. I feel good.”

The UFC notably extended its ESPN deal in 2019, adding exclusive PPV rights to what was previously an agreement to broadcast Fight Night events and PPV prelims. When asked how much of a driver PPV is today versus “core” media rights, Emanuel brought up a recurring topic of concern over the years to UFC research analysts: revenue variability.

“I used to have this lumpy business,” Emanuel said. “And last I checked, everybody in that room does not like lumpy because they like to be protected. So I took my Fight Nights and I made my deal. And right behind it, I sat down with Bog Iger and Kevin Mayer and I said, ‘Guys, do you want the ultra premium? I’ll take it off DirecTV and I’ll sell you for [ESPN] Plus my PPVs.’ And we negotiated a deal. I don’t have PPVs now, I’m not lumpy. I have a set number, I know my number. I think I negotiated a very good deal as to where it should be and they benefited from it and you can see the [subscription] growth for them. So I don’t have any variability. I’ve taken the variability out.”

The PPVs being referenced are domestic, residential PPV sales, which in 2010 and 2015 made up 43% and 32% of the UFC’s business, respectively. While the promotion still has some revenue variability on the international and commercial PPV side, those revenues tend to be smaller, but are also growing as noted by Emanuel.

“So, I’ve taken a lot of the variability – to ease everybody’s mind – out of the business,” he said. “I no longer have that lumpiness that makes all you guys nervous. I don’t want to make anybody nervous. I’m already nervous.”

When the topic shifted to the fact that 90% of the UFC’s viewers are international yet account for only 10% of the promotion’s revenue, and how that gap might get closed, Emanuel used the opportunity to emphasize how he doesn’t see a slowdown in the demand for content. Endeavor recently had a non-UFC deal in the UK go from just one previous bidder to five bidders, and a resulting 100% increase in price. “Well you now have the Amazons, the Disneys with a bunch of their deals, Warner’s coming in with their international business, and the local guys that are out there across the board,” Emanuel said. “So there are multiple bidders.”

And speaking of bidders, towards the end of the event Emanuel was asked for his take on the recent five-year broadcast deal between Amazon and ONE
មួយ
Championship, one of the UFC’s chief competitors. He mentioned how Amazon was a bidder for the UFC’s most recent round of rights before things got “mucked up.” And to Emanuel, Amazon might’ve realized the value of what they missed with the UFC. “I think it just presents an opportunity for us at Amazon,” he concluded.

When asked if Amazon could be a potential bidder for future UFC rights, the answer was simple, “I’m smiling.”

While it’s understandable that Emanuel would be optimistic in front of group of sell-side analysts he wants to promote his company’s stock, he also seems to have legitimate reasons for optimism on the UFC side of the business. “Our PPVs, our Fight Nights, our Contender Series, they’re just performing,” he emphasized.