The leader of the UFC explains why he wanted David Ellison’s backing for the mixed martial arts powerhouse, why the pay per view model no longer makes sense, and how a potential UFC fight at the White House could look on CBS.
When David Ellison attended UFC events in April and June, sitting cageside only a few seats away from Donald Trump, media observers speculated that the 42 year old Skydance Media chief executive might be trying to ease political scrutiny surrounding his eight billion dollar acquisition of Paramount. That deal, which had been delayed for months by Trump’s Federal Communications Commission, officially closed last week. It now appears that Ellison was also laying the groundwork for another major agreement during those appearances.
On Monday, the Las Vegas based UFC announced a seven year media rights agreement worth 7.7 billion dollars with Paramount. Under the deal, all UFC fights in the United States will stream on Paramount Plus, with selected events airing simultaneously on CBS.
UFC chief executive Dana White said he already had an existing relationship with Larry Ellison and spoke with David Ellison at each of the events. Ellison was one of many executives competing for the UFC rights and ultimately secured the deal only days after the Skydance and Paramount merger received final approval.
White said Ellison’s team took an aggressive, all or nothing approach and made it clear they wanted the entire package. He praised the Ellisons as highly capable business leaders with a long term strategy and said he is eager to work with them.
The deal values UFC media rights at an average of 1.1 billion dollars per year, placing it close to Major League Baseball, the Olympics, March Madness and Nascar, and well above leagues such as the NHL and the PGA Tour. The agreement covers only the United States. The UFC will continue to sell its international media rights market by market through IMG, a segment estimated to generate about 250 million dollars annually.
Unlike most sports leagues, the UFC pays for and controls its own broadcast production to maintain complete authority over the presentation of its events. White said relinquishing that control is not an option and will not change while he remains in charge.
Paramount’s payments will nearly double what the UFC currently earns from ESPN. Since 2019, ESPN has paid an estimated 350 million dollars per year to air UFC Fight Nights on ESPN Plus. Under an extension signed in 2023, ESPN also pays roughly 250 million dollars annually for the UFC’s numbered events, which are then sold to viewers as separate pay per view purchases, with ESPN retaining that additional revenue.
One of the most significant changes in the new agreement is the elimination of the pay per view model, which has been central to UFC programming since 1993.
Mark Shapiro, president and chief operating officer of TKO Holdings, the UFC’s parent company, said the organization had wanted to move away from pay per view since negotiations began earlier this year. He said the combined cost of subscriptions and pay per view fees had become too expensive for fans, contributing to a sharp increase in illegal streaming during major events.
Shapiro noted that piracy levels rose dramatically, similar to what is seen with major boxing events, which signaled that the pricing structure had become unsustainable.
During negotiations, White and Shapiro initially believed they would need to split UFC media rights among several partners. At one stage, they considered working with as many as five distributors, including major streaming and media companies.
As discussions progressed, Paramount became the leading candidate for Fight Nights, while talks continued with other potential partners for premium events. Once Skydance officially assumed control of Paramount, Ellison finalized a deal covering the entire UFC package within two days.
White said every media rights agreement is transformative, not only because of increased revenue but also because of the strategic opportunities created by a partner’s assets and long term vision.
Following the announcement, Paramount’s stock declined slightly, while shares of TKO Holdings rose by more than 10 percent.
White and Shapiro expressed confidence that UFC fans will migrate to Paramount Plus in large numbers, citing the organization’s successful transitions to new broadcast partners in 2012 and 2019.
Paramount currently reports 77.7 million Paramount Plus subscribers, significantly fewer than competitors such as Netflix, Amazon Prime Video, Disney Plus and HBO Max. According to Nielsen data, Paramount Plus accounts for about 2 percent of total monthly television viewing.
To strengthen its streaming platform, Ellison recently secured a 1.5 billion dollar deal to bring South Park to Paramount Plus. However, the UFC agreement represents a much larger bet that a global, year round sport can drive subscriber growth, reduce churn and boost engagement.
With the UFC becoming an exclusive cornerstone of Paramount Plus, Ellison has positioned the promotion as a central pillar of the company’s future. The political implications are notable, given Donald Trump’s interest in combat sports and his close relationship with White.
White confirmed plans to host a UFC event at the White House around July 4, 2026. He described it as a unique, one time experience similar to the UFC event held at the Sphere in Las Vegas last year, and said it would likely air on CBS. White added that he has not yet spoken with Trump about the new deal but expects to hear from him soon, noting that Trump always reaches out eventually.
