AGREEMENT BETWEEN TV CHANNELS AND UFC BECOMES BILLION DOLLAR BUSINESS IN BRAZIL

December 28, 2012

 

The UFC and its TV partners in Brazil --Premiere Combat and Globo-- agreed a package that raises the industry's revenue for the promoter firm struggles to the billions.

 

The restructuring agreement rules out the possibility of winning another station in the near future, the broadcasting rights of major tournament MMA (mixed martial arts) in the world.

 

Negotiations involving the Globe and its "arm" on pay-per-view, Premiere Combate channel, with UFC run parallel.

 

Jason Redmond - 12.nov.11 / Associated Press

The UFC has guaranteed floor of annual US $ 25 million (£ 51.3 million)

The UFC has secured a floor of US annual $ 25 million (£ 51.3 million)

In the most conservative scenario, the values ​​reach about US $ 771 million.But the mark of R $ 1 billion was mentioned by those who closely monitors trading.

 

The contract with Premiere Combate, which had already been officially extended to 2015, it now until 2022.

 

There is also a trigger that extends until 2027. To do this simply that the channel reaches 1 million subscribers.

 

It was agreed for 2013 and 2014 the payment to the UFC two values ​​which together reach US $ 36 million (about US $ 73.9 million).

 

From the following year, the UFC and Premiere Combate will share profits.

 

The UFC has secured an annual $ 25 million floor (R $ 51.3 million), but this amount can easily be overcome, depending on the sales volume of signatures and pay-per-view.

 

The amounts of the monthly subscription channel Premiere Combate or the acquisition of sundry events UFC vary between R $ 50 and R $ 70.

 

The package that was agreed provides seven national events from next year, the first of them in São Paulo in January, with the fight Vitor Belfort x Michael Bisping.

 

In the four years between 2013 and 2016, Globo has the right to display six events a year.

 

Three of them national and live, including the Brazilian version of the decision of the reality show "The Ultimate Fighter". The station also has the right to transmit three international events, with half-hour delays forecast.

 

UFC president has said he sees Brazil a day as its main market.

 

Premiere Combate recognized the contract extension. Globo remained silent until the conclusion of this edition. The same procedure was adopted by the UFC.

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