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⚠ Rights That Leave: UFC and Formula 1Moderate threat

Walt Disney (DIS) — threat to the moat

ESPN lost UFC in December 2025 and Formula 1 at the end of 2025; Sports other revenue fell 41% in Q3 FY2026 without UFC pay-per-view.

Rights are rented, not owned, and some have gone. ESPN's UFC rights "expired in December 2025"1, and its Formula 1 rights ended at the end of 20252. The effect shows in the third quarter of fiscal 2026: Sports other revenue fell 41% to $154 million, "primarily due to the comparison to Ultimate Fighting Championship (UFC) pay-per-view revenue in the prior-year quarter"3.

Disney Sports other revenue, quarter ($M)261Q3 FY2025154Q3 FY2026Walt Disney Q3 FY2026 earnings release, Sports revenue by type
The UFC pay-per-view money went with the rights.

Losing a right saves its cost, which is why the loss is not always bad. But each loss is also a property a rival can use to build its own sports service, and a reason for a fan to subscribe elsewhere.

The leagues hold this power because ESPN's competitors now include streaming services with large budgets. Disney's own response has been to sign longer contracts and to give a league a stake, as with the NFL, which the Competitors pages describe.

The cost side moved the same way. Sports programming costs in the third quarter were "partially offset by the absence of certain rights costs compared to the prior-year quarter, primarily for UFC content"4. Losing a right removes revenue and cost together, and the margin outcome depends on which was larger.

The measure is how much of ESPN's portfolio walks at each renewal. Sports other revenue that stays below $250 million a quarter after the UFC comparison has passed would suggest ESPN lost pay-per-view revenue it cannot replace.

References
  1. ReportedESPN's UFC rights "expired in December 2025", and its Formula 1 rights ended at the end of 2025.
    The Walt Disney Company third-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - Sports results, ESPN viewership, the NFL Transaction and programming costs. — Q3 FY2026 · publ. 5 August 2026 · source ↗
  2. ReportedESPN's UFC rights "expired in December 2025", and its Formula 1 rights ended at the end of 2025.
    The Walt Disney Company Form 10-K for fiscal 2025 (year ended 27 September 2025) - Item 1 business and MD&A for Sports: ESPN, its channels and rights, and Star India. — FY2025 · publ. 13 November 2025 · source ↗
  3. ReportedThe effect shows in the third quarter of fiscal 2026: Sports other revenue fell 41% to $154 million, "primarily due to the comparison to Ultimate Fighting Championship (UFC) pay-per-view revenue in the prior-year quarter".
    The Walt Disney Company third-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - Sports results, ESPN viewership, the NFL Transaction and programming costs. — Q3 FY2026 · publ. 5 August 2026 · source ↗
  4. ReportedSports programming costs in the third quarter were "partially offset by the absence of certain rights costs compared to the prior-year quarter, primarily for UFC content".
    The Walt Disney Company third-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - Sports results, ESPN viewership, the NFL Transaction and programming costs. — Q3 FY2026 · publ. 5 August 2026 · source ↗
Sources
Generated October 5, 2026