Endeavor’s strategy of buying leagues — and owning all of their content — is starting to pay off.
The agency spent $100 million on the Professional Bull Riders in 2015. Two years later, it plunked down $4 billion for the UFC.
Over the past several months, it has secured media rights deals for both properties — UFC with ESPN, and PBR with CBS. Financial terms of the PBR deal were not disclosed, but the five-year ESPN deal has an average annual value of $300 million.
“The underlying strategy behind our acquisition of UFC and PBR was our belief that Endeavor could bring them further into the mainstream,” said Endeavor President Mark Shapiro. “These new deals and extensions are truly evidence to that.”
Endeavor President Mark Shapiro says rights deals for UFC and the PBR show that live event content is more important than ever.getty images
For decades, media executives have made a mint by following the axiom “content is king.” The idea that Endeavor is focused on owning its own content is an extension of what Shapiro did at ESPN years ago when he launched the “SportsCentury” documentary series and tried to get ESPN more into scripted shows with series like “Playmakers.”
But Shapiro argued that live event content — especially with cord cutters and the launch of direct-to-consumer services — is more important than ever.
“Linear channels are trying to stave off cord cutters and the streaming platforms are chasing consumers who have a limited appetite for a few select monthly subscriptions,” he said. “Premium content is so in demand. There is likely going to be no shortage of suitors lining up to take a look. You just need two that have an interest and you’ve created a market. … I don’t know how long it will last. I assume that some of these streaming platforms will fall by the wayside but, for now, we’re in a truly magical window.”
Shapiro has his eyes on 2021, which is when the NFL starts to negotiate its media deals. By that time, digital media companies such as Amazon and Google could be at the negotiating table bidding lots of money on those rights.
“The NFL is really in such a prime position because by the time their deals are up some of these digital streaming platforms will be further developed and penetrated,” he said. “I would think that the competition will just be that much hotter.”
A big part of what Shapiro likes about the UFC and PBR is that their videos can be shared easily on digital media — something that attracts younger audiences and, in some ways, has become as important as the live event experience, Shapiro said.
“We went from like 3G to 5G overnight, it seems,” Shapiro said. “It’s not where it needs to be now. But we’re seeing new technologies and we’re developing greater solutions every month to make the viewing experience that much better for the consumer. Give us three years and there’s no telling where we’ll be.”
John Ourand can be reached at jourand@sportsbusinessjournal.com. Follow him on Twitter @Ourand_SBJ.
