UFC merger beefs up WWE's leverage in media rights negotiations

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WWE and Endeavor's UFC agreed to merge this year, giving both sports entertainment properties more leverage just as key media rights deal negotiations begin.

"I think everything is up for grabs with these media rights deals. There's a wide range of opportunities of what can be done and where these properties can end up," said sports media consultant Lee Berke of WWE, UFC, and pretty much any other sports league.

Besides their massive popularity, WWE and UFC also have some of the most-seasoned entertainment and sports rights negotiators sitting on their side of the table.after previously serving as the co-head of television at Creative Artists Agency. During his time with CAA,Endeavor's Emanuel and Mark Shapiro have sat at many negotiation tables.

"With Endeavor, given their skill set, particularly through IMG, negotiating sports rights deals, it'll provide a value added to WWE and their negotiating process," said Eric Handler, senior media and entertainment analyst at Roth Capital Partners. Agencies IMG and WMEEmanuel touted Endeavor's experience with sports deals well before the WWE deal.

"Internationally, one of our last deals we did for the UFC in the UK, there were six bidders for our rights. So – and we're up over 100% and our IMG Media business is doing very, very well," he said in Endeavor's most recent earnings call. "So the demand for live sports and those rights broadcast is in high demand."

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