Endeavor purchased UFC in 2018, a year before inking deals with ESPN that resulted in triple the rights fees for the MMA league’s prior agreement with Fox. 

On Monday, Endeavor announced that it had made an agreement to merge WWE with UFC to create a publicly traded company — one that, after all the necessary approvals, will be seeking to leverage new media deals for both entities. 

“Together, we will be a $21 billion-plus live sports and entertainment powerhouse with a collective fanbase of more than a billion people and an exciting growth opportunity,” said WWE Executive Chairman Vince McMahon in a statement. “The new company will be well positioned to maximize the value of our combined media rights.”

Endeavor stated it “expects significant growth across revenue areas including domestic and international media rights.”

WWE’s deals with NBC Universal and Fox — worth nearly $500 million combined annually — expire next year. UFC’s exclusive broadcast and streaming deals with ESPN are worth around $300 million per year and expire in 2026. 

Given WWE’s deals expiring in fall 2024, it’s unlikely a massive joint deal is on the cards. WWE President Nick Khan, who will hold the same title with the combined company, said negotiations are just starting with Fox and NBC Universal, who have the right of first refusal at this point. 

Endeavor will have a 51% controlling interest in the new company, with the remainder being held by existing WWE shareholders. The deal values UFC at $12.1 billion and WWE at $9.3 billion. 

The fallout from Diamond Sports’ bankruptcy has now hit Cleveland, where a regional sports network could miss a payment on rights fees.

Bally Sports Great Lakes was scheduled to make its first rights payment for the 2023 season to MLB’s Cleveland Guardians on Saturday, but it’s “unlikely” the payment was delivered, according to the Cleveland Plain-Dealer.

Still, Bally will have a 10-day grace period to make good on its obligations. Bally pays the Guardians between $47 million and $52 million per year. The contract runs through 2027, and unlike other team deals, Bally pays the Guardian in installments rather than one annual fee.

If Bally stiffs the Guardians, MLB is prepared to step in and show games with no lost coverage.

“No matter what, we’re confident our games will be on TV in some manner,” said Curtis Danburg, Guardians vice president of communications. “We don’t expect any disruption to our fans being able to watch the games on TV.”

The dustup between Bally and the Guardians follows a similar situation in San Diego. 

The San Diego Padres dodged a bullet when the local Bally RSN dropped its rights fee to the club before a midnight deadline.

Diamond’s Bally Sports controls media rights to 14 MLB clubs across the country, but filed for bankruptcy on March 15 after missing a $140 million interest payment. 

In its filing, Diamond cited $8.7 billion in debts. 

As it inches its way through a Chapter 11 reorganization, Bally is looking to keep the most profitable rights deals and dump the rest — including those with the Guardians, Cincinnati Reds, and Arizona Diamondbacks, according to the Plain-Dealer.

New York Knicks and Rangers owner James Dolan is reportedly in the process of settling the second of two lawsuits against him related to the construction of the increasingly expensive MSG Sphere in Las Vegas.

Investors in MSG Networks alleged that Dolan purposely misled them about the rising costs of MSG Sphere by spying on employees and destroying evidence, according to the New York Post.

The lawsuit states that Dolan downplayed the expenses — by shredding documents and firing executives who wanted to disclose the rising costs — so that he could inflate the purchase price and dilute shares when MSG Entertainment purchased the Networks division for $922 million in March 2021.

Dolan reportedly settled with the MSGE shareholders for $85 million over the same issue last month.

While that settlement was paid for via insurance, it’s unclear how Dolan will pay for the MSG Network settlement and what the price will be — though the Post suggests he could personally be responsible for $200 million.

Since the cost of the Vegas MSG Sphere — which will primarily host concerts but also plans to host fighting events — ballooned to $2.2 billion in December, Dolan has fired at least two executives related to the project: president Lucas Watson and senior manager of business operations Jenna Wolfenson.

MSG Sphere is scheduled to open this fall with a performance from legendary rock group U2.