Paramount, UFC and the biggest question for streaming sports fans

As shifts take place, media companies are about to go through a big test: how many people are willing to pay for a lot of — but not all — the sports content they want.

- By Ryan Faughnder

Los Angeles Times photo illustration; Getty Images

It's been a dramatic couple of weeks in the wide world of sports rights, as media companies locked down a slew of deals that remake the way that fans watch their favorite athletic competitions.

On Aug. 11 came a big one: David Ellison, the new owner of Paramount, came into the ring punching hard with a $7.7-billion deal for the streaming and TV rights to UFC matches. In the seven-year pact with UFC owner TKO Group Holdings, the Ellison-led Paramount will pay an average of $1.1 billion annually — about twice what Walt Disney Co. was paying to air the mixed martial arts league on ESPN.

It's a signal that Ellison is willing to spend big bucks on content that he and his fresh executive team think will make Paramount+ a more formidable competitor to Netflix, Amazon's Prime Video, HBO Max and others. Paramount+ will have the rights to stream 13 marquee "numbered" UFC events and 30 fight nights, while certain numbered events will be simulcast on the company's broadcast network, CBS.

Now those sightings of the tech scion-turned Hollywood mogul speaking with President Trump at UFC fights make even more sense, as do Ellison and Paramount's recent peripheral dealings with superagent Ari Emanuel, TKO's executive chair. In a key part of the deal, UFC will move away from showcasing fights through its pay-per-view model, which should dramatically increase the reach of a sport with strong appeal among young men.