Modelo Especial To Replace Bud Light As UFC's U.S. Beer Sponsor In Multiyear Deal

Mexican beer brand Modelo Especial "will replace 10-year incumbent Bud Light as the official beer of the UFC beginning in January" in an "audacious, eight-figure plunge for a brand that announced its first U.S. sports sponsorship less than a year ago," according to Bill King of SPORTSBUSINESS JOURNAL. A source said that the rights fee, which "grants Modelo only the U.S. and allows the UFC to do individual deals in territories such as Canada, the U.K. and Brazil," is in the $10M range annually that A-B InBev "paid in its prior deal for Bud Light." Other sources said that the new deal was for "slightly less." UFC execs would not confirm any figures, but said that they are "confident that selling the category country by country" not only will "generate more revenue than a global deal, but also will deliver more in-market promotion for their events and fighters" (SPORTSBUSINESS JOURNAL, 10/9 issue).