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The Ultimate Fighting Championship (UFC) is reportedly seeking over $1 billion annually in its next media-rights deal—more than double what ESPN currently pays, according to sources familiar with the matter.

The UFC’s current agreement with Walt Disney Co.’s ESPN is set to expire at the end of 2025. Exclusive negotiations between the two parties are expected to begin later this month, although informal discussions have already taken place, the sources said, speaking on condition of anonymity.

TKO Group Holdings Inc., the UFC’s parent company, aims to capitalize on the robust demand for sports rights. With most major U.S. sports leagues already locked into long-term contracts, the UFC represents one of the most valuable sports packages available in the coming years.

“Discussions regarding our upcoming U.S. domestic rights renewal have not yet begun, and we have not shared any expectations regarding pricing,” the company said in a statement on Jan. 7. “We are in an exclusive negotiating window with ESPN through mid-April 2025 and look forward to productive discussions when the time comes.”

Shares of TKO rose by as much as 2.8% to $146.38 in New York.

The UFC is keen to continue its partnership with ESPN, which currently holds two agreements: one for regular matches, many of which air on ESPN’s cable network, and another for pay-per-view events on its streaming service, according to sources. Together, these deals bring in approximately $450 million annually for the UFC. Aligning with ESPN, the leading sports-media company, has significantly boosted the UFC’s popularity, transitioning it from the fringes of mainstream culture to a major player in the sports industry.

“We started with ESPN seven years ago, and our relationship was rocky at first,” UFC Chief Executive Officer Dana White said during a Bloomberg TV interview in November. “But now, I couldn’t be happier with ESPN. It’s a great partnership, and I’d have no problem staying with them.”

However, major U.S. sports leagues have increasingly split their media rights among multiple companies to maximize revenue. The NFL works with at least six different partners, and the NBA recently finalized a new deal with three. TKO has also considered distributing its rights across multiple broadcasters.

The upcoming media rights deal will be the UFC’s largest to date and is critical for TKO. Shares of the company surged 74% in 2024, driven by optimism about the evolving sports-media market.

TKO CEO Ari Emanuel and President Mark Shapiro are leading negotiations for the UFC’s next media rights deal and reportedly have at least four to five potential buyers, sources say. These include Amazon.com Inc., Netflix Inc., Warner Bros. Discovery Inc.—which recently lost NBA rights—and Google’s YouTube, particularly for pay-per-view events.

All of these companies are eyeing sports content to strengthen their streaming platforms. ESPN is set to launch a new streaming service, while Amazon has become the leading tech company investing in sports rights. Last year, TKO secured a $5 billion, 10-year agreement to make its WWE program Raw exclusive to Netflix starting in 2025.