Call it a Monster of a deal.
In a nine-figure pact -- which the property and the brand both termed their biggest sponsorship ever -- Monster Energy has renewed its global rights with the UFC. The extension covers five more years, along with an additional option for a sixth. UFC officials were tight-lipped on the specifics, but previous UFC “largest” claims have been reported at $175 million (Crypto.com and A-B InBev).
Monster, UFC’s “Official Energy Drink” since 2015, is the MMA circuit’s second-most tenured sponsor after Toyo Tire. Under the renewal, Monster continues to hold what is arguably the UFC’s most valuable marketing asset: branding in the center of its octagon. One difference in the third renewal of the original deal: pass-through rights to Monster retailers are now included.
“Monster has been in the center of our octagon for so long, it feels like part of our equipment,” said Grant Norris-Jones, TKO Group’s EVP and head of global partnerships. “So, a big part of our conversations around this was about finding ways for them to activate more fully.”
Monster continues with placement in, around and after UFC events, including branded coolers at weigh-ins similar to Gatorade’s ubiquitous presence under its longstanding MLB, NBA and NFL sponsorships.
It’s been a symbiotic relationship for both property and sponsor.
“When you think about industry norms, it’s really unusual to keep a [sponsor] that long, but it’s because both businesses have exploded over the past decade any way you count it, from popularity, to brand equity to revenue,” Norris- Jones added. “It’s our case study for an impactful partnership.”
For the deal, negotiations were led by UFC President and CEO Dana White, Norris-Jones, Monster Energy Chair and co-CEO Rodney Sacks and SVP/Sports Marketing Mitch Covington.
