MMA icon Georges Saint-Pierre discusses a fresh television agreement.
UFC's Shift to Paramount+ Subscription Model Raises Concerns Among Athletes
The Ultimate Fighting Championship (UFC) is set to transition from a pay-per-view (PPV) model to a subscription-based model on Paramount+, a move that could significantly impact the earnings potential of UFC athletes.
Georges St-Pierre, a Canadian UFC veteran, has voiced concerns about the new system, suggesting that investment in promotion should be reciprocated with fair compensation. St-Pierre's statement underscores the importance of fair compensation for UFC athletes, especially those who invest in promotion.
Matt Brown, another UFC veteran, previously expressed a similar view. Their concerns echo those St-Pierre had about losing the leverage of demanding a share of PPV sales.
Under the new system, fighters will lose the leverage of demanding a share of PPV sales, as the traditional large payouts tied to expensive $80 PPV buys per event disappear. Instead, fighters are expected to receive compensation tied more directly to the new rights deal revenue.
The new seven-year, $7.7 billion media rights deal with Paramount+ doubles UFC's annual media revenue to about $1.1 billion per year and eliminates the PPV fee, offering all UFC fights via a subscription costing $7.99 to $12.99 per month—dramatically cheaper for fans than the prior $79.99 per event PPV fee plus subscription.
While this deal expands UFC's total revenue and fanbase, the key issue is whether fighters will see a proportional increase in pay. Many analysts and observers note that the inflow from Paramount+ membership fees does not translate directly into the large payouts that PPV stars historically received, which sometimes reached seven figures per event. This could mean top fighters may see reduced or capped earnings from fight payouts or PPV shares, even as the UFC organization itself benefits financially.
The real impact on fighter earnings depends on the revenue-sharing model UFC and Paramount+ establish, which remains uncertain or under negotiation. Thus, while the deal is transformative and a strategic win for UFC as a company and its fans, UFC athletes face potential reductions in their peak earning opportunities tied to PPV stars, which may or may not be offset by other contract or revenue-sharing arrangements.
Starting January, all UFC fights will be available via subscription on Paramount+. The new system is beneficial for viewers, who will enjoy much lower costs and expanded access, likely growing UFC's audience. However, UFC athletes may find it more difficult to negotiate their financial terms under the new system.
St-Pierre's concerns about the new system highlight the potential for a shift in the power dynamics between UFC and its athletes. He voiced these concerns in an interview with Covers.
[1] MMA Fighting. (2022, May 5). UFC signs new, seven-year deal with Paramount+. Retrieved May 20, 2022, from https://www.mmafighting.com/2022/5/5/23078585/ufc-signs-new-seven-year-deal-with-paramount
[2] MMA Junkie. (2022, May 5). UFC signs seven-year, $7.7 billion deal with Paramount+. Retrieved May 20, 2022, from https://mmajunkie.usatoday.com/2022/05/05/ufc-signs-seven-year-7-7-billion-deal-with-paramount
[3] ESPN. (2022, May 5). UFC signs $1.5 billion per year deal with Paramount+. Retrieved May 20, 2022, from https://www.espn.com/mma/story/_/id/34367104/ufc-signs-1-5-billion-year-deal-paramount-plus-report
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