DraftKings (NASDAQ:DKNG) announced Thursday it has entered a licensing agreement with mixed martial arts organization UFC.
The agreement grants DraftKings the rights to be UFC’s sportsbook partner and includes rights to licensing a countdown clock. UFC will also show DraftKings betting odds in its fight broadcasts.
The deal shows DraftKings is picking up where it left off in 2020, aligning partnerships with top sports companies to put itself where it believes sports fans are. Financial terms of the partnership were not disclosed.
Ezra Kucharz, DraftKings’ chief business officer, said the agreement will give DraftKings brand control over an installed clock in arenas where UFC events are held.
"It’s going to allow the fighter and fans the ability to see the time left in a round in a way that they haven’t before," Kucharz said. "It’s a big deal because it’ll be integrated into the production technology, and fans and fighters will have the ability to see the countdown clock that people traditionally see watching at home."
The announcement follows a 2019 $1.5-billion media rights deal between UFC and Disney-owned (NYSE:DIS) ESPN.
"This is a massive deal that will benefit UFC, DraftKings, and most of all the fans," UFC President Dana White said in a statement. "DraftKings is the best at what they do in the betting and daily fantasy space, and unlike other sports, UFC has no off-season. The action will be non-stop for fans of UFC and DraftKings."
DKNG shares fell $2.60, or 4%, to $63.15
