By: Samuel Hendler
“IIIITTTT’SSS TIIIIIMMMEEEE!!” Bruce Buffer’s short phrase is a household saying, captivating the sports and entertainment world. Dana White’s Ultimate Fighting Championship (the “UFC”) has risen from small-scale fights at the Trump Taj Mahal in Atlantic City, New Jersey to the largest stage on Trump’s backyard at the White House on June 14, 2026.
Recently, in August 2025, the UFC announced a landmark seven-year, $7.7 billion USD media-rights agreement, beginning in 2026, with Paramount Skydance to stream its mixed martial arts (“MMA”) fights exclusively on Paramount+. The monumental licensing deal is the first of its kind in the MMA space, as the UFC is shifting away from the longstanding pay-per-view model (“PPV”) to a streaming model. The UFC’s international fighters and fan base demonstrate the sport’s global popularity and the demand for live sports in the streaming sector.
For the typical UFC fan, they are ecstatic that they are no longer required to pay high PPV costs for each marquee event. Fans are especially thrilled that they can view the matchups with just a simple click of a button through their Paramount+ subscription. While most UFC fans see the agreement as a convenient channel to receive their entertainment, beneath the surface lies a complex web of contractual, labor, intellectual-property/licensing, and regulatory issues.
As far as contractual considerations, territorial exclusivity and payment structures lead the way. The initial agreement covered the United States but required separate executed licensing agreements for international jurisdictions. Fans in Australia and Latin America are in luck because, in October 2025, Paramount executed deals in these regions in anticipation of the UFC’s high demand in its 2026 slate. Additionally, the seven-year agreement “has an average annual value (“AAV”) of $1.1 billion.” The UFC’s current contract with ESPN, including PPV rights, has an AAV of $550 million. Negotiations led to a back-loaded payment schedule. The UFC’s production, advertising, and administrative costs are primarily fixed, and the $550 million annual profit will substantially benefit the company and its investors, but people are yet to know the deal’s impact on the UFC’s fighters. For over a decade, “Fight Night and Performance of the Night bonuses have been fixed at $50,000 each.” The new agreement has the potential to result in contentious negotiations between the UFC and the fighters’ representatives to ensure that the fighters are getting their fair share of the profits.
Furthermore, in industry-defining deals such as the present one, both the UFC and Paramount Skydance have had their respective legal teams analyze the potential risks that could arise throughout the term of the agreement and mitigate them with essential contractual provisions. Each company’s lawyers likely drafted hefty indemnification provisions, which shift financial risk from one party to another in the event of potential breaches or other harms. Also, the agreement likely contains a force majeure clause, which excuses the parties from performing their contractual obligations when an extraordinary event directly prevents one or both parties from performing. This clause was likely relevant in the UFC’s prior agreement during the COVID-19 pandemic. However, the UFC was the only professional sports league to not pause its operations during the pandemic in 2020, as the fights relocated to Abu Dhabi’s Yas Island in a quarantined environment.
Beyond financial terms, the new deal has significant labor implications. UFC fighters are designated as independent contractors, which does not provide them coverage under the National Labor Relations Act. Additionally, unlike the NFLPA, there is no fighter union to vouch for and protect the fighters’ interests to obtain a piece of the newly increased revenue. With the increase in revenue, the fighters will expect to see a fair piece of the pie. One should expect to see increased litigation across international jurisdictions, as the UFC consists of fighters from over 75 countries. There is ongoing litigation in the United States, where a U.S. District Judge in Las Vegas declined to approve a $335 million settlement in multiple class actions against the UFC for the suppression of wages, allowing for a jury to potentially award over $1 billion in damages.
A longstanding public concern of Dana White’s is the protection of the UFC’s intellectual property against piracy and illegal viewership. It is yet to be known how the exclusivity to Paramount+ will address White’s concerns. It could potentially be more challenging for individuals to access Paramount+ illegally due to advanced anti-piracy technology. Additionally, as Paramount expands its coverage internationally, it is crucial that there are strict guidelines on translation, localization, and adaptation. UFC viewership reaches more than 210 countries and territories in 50 languages, so it is important that Paramount and the UFC have proper licensing agreements and regulations in place to prevent misrepresentation of their product.
As the UFC embarks on its seven-year journey alongside Paramount Skydance, the world awaits Alex Pereira live on Paramount+. While fans count down the days until the first fight on Paramount+, lawyers and executives should consider contractual challenges, labor implications, and various international licensing and intellectual-property risks. As the global streaming universe enters the Octagon, the next fight won’t be for the belt, but for equity, fairness, and accountability.
