Netflix reportedly had first-negotiation rights for UFC as part of WWE deal

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Just over a year ago, newly combined Paramount and Skydance shocked the sports media business by securing exclusive rights to all UFC fights for the next seven years in a deal that pays the MMA promotion more than $1 billion annually. But before freshly minted Paramount chief David Ellison swooped in with deep pockets, the conventional wisdom was that UFC would land on Netflix.

The reasoning was sound. Netflix already had a deal with UFC’s parent company, TKO, which saw the streamer air WWE Raw every Monday night. UFC seemed like a natural fit, especially as its numbered fight cards closely mirrored Netflix’s event-based strategy for live sports.

As it turns out, Netflix not only had genuine interest in a UFC deal, but it also had the right to negotiate with TKO before any other company as part of its WWE contract, according to recently unredacted court filings published by wrestling reporter Brandon Thurston.

Unredacted: WWE’s media rights deal with Netflix gave Netflix first rights to negotiate for UFC domestic media rights.

Those rights ultimately went to Paramount, not Netflix. https://t.co/WoJqJBHyfW

The filings state that Netflix’s media rights deal with WWE “includes a right of first negotiation for UFC domestic rights.” Those rights ultimately landed at Paramount, but Netflix’s ambitions to land the UFC appear to have been serious.

Shortly after UFC and Paramount announced their pact, TKO president Mark Shapiro revealed that the promotion had gotten “pretty close with Netflix” but the streamer “didn’t want to have the volume” of UFC content that Paramount ultimately licensed. Shapiro suggested Netflix wanted only the numbered UFC cards that include the organization’s best fights, leaving lesser inventory like Fight Night and Dana White’s Contender Series to be sold elsewhere. TKO, of course, preferred the deal that created a one-stop-shop for all UFC content.

Netflix’s first-negotiation clause being revealed now is a bit ironic, given that many analysts suggest the streamer needs to lean into regularly scheduled live sports rather than one-off events to combat slipping engagement metrics. Netflix recently fired Bela Bajaria, the streamer’s content chief and one of the architects of the event-based sports strategy.

The streamer is reportedly considering a partnership with Fox One that would bring Fox’s live sports and news content into the Netflix platform. Additionally, one prominent analyst suggests Netflix look to buy NBCUniversal once it completes its spinoff from Comcast to secure its own live sports portfolio.

No one knows how much a UFC deal would’ve helped Netflix’s engagement woes, but the timing of this news is even more interesting, as many expect Netflix to change course on live sports.