UFC’s Broadcaster ESPN Faces Major Problem as Details of $1 Billion Lawsuit Emerge

Over the last decade or so, the UFC has witnessed insane growth both in terms of popularity as well as revenue. What started as a failing business has now turned into a business that generates over $1 billion in revenue. A huge part of that is down to the distribution of the sport. In 2019, the UFC signed a 5-year, $1.5 billion streaming deal with ESPN. However, according to recent reports, that deal might be facing some legal troubles.

ESPN revealed last week that it would be collaborating with FOX and Warner Bros to create a new sports-focused streaming service. The service will include content from all three networks under one roof.

Along with FOX, FS1, FS2, TNT, TBS, and other channels that provide sports programming from the three networks. The package will include all of the ESPN channels. These channels are responsible for streaming all of the fight night events that the UFC puts on. This partnership was expected to launch in the fall of 2024. However, a $1 billion lawsuit might be getting in the way of these plans.

FuboTV filed a $1 billion lawsuit against this proposed merger, stating that it was anti-competitive. CEO David Gandler stated,

“Each of these companies has consistently engaged in anticompetitive practices that aim to monopolize the market, stifle any form of competition, create higher pricing for subscribers and cheat consumers from deserved choice.”

FuboTV has filed an antitrust lawsuit in an attempt to block the three-network sports streaming service announced by ESPN, Fox, and Warner Bros. Discovery.

— Front Office Sports (@FOS) February 20, 2024

Gandler went on to add that the merger would create barriers to entry that would be too high to surpass. He believes that the merger will destroy the free market practices on which businesses in the United States were built. If Fubo TV is successful, it would put a huge dent in the future of ESPN.

A closer look at the UFC and ESPN partnership

For a significant time, the UFC hosted its events on the Fox network. However, when that deal was done, the world leader in MMA shocked everyone by signing with ESPN. This was not a deal many saw coming.

To make things even more interesting, the Dana White-led UFC was set to receive a whopping $300 million a year from ESPN for its content.

 

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Being on ESPN has helped the UFC become a more mainstream sport and cater to a wider audience. It has helped the UFC grow at an unprecedented rate, year over year. While the lawsuit will not directly affect the UFC, it will severely affect ESPN.