Multinational beverage maker Anheuser-Busch InBev’s (NYSE:BUD) Bud Light has rekindled its partnership with the Ultimate Fighting Championship (UFC) as its official sponsor. The six-year marketing deal will begin on January 1, 2024, after UFC’s current partnership with Modelo Especial expires. In 2017, Constellation Brands’ (NYSE:STZ) Modelo brand took away the official beer sponsor title from Bud Light, which was UFC’s official sponsor since 2008.
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UFC recently merged with WWE parent Endeavor to form a new public company, TKO Group Holdings (NYSE:TKO).
More on the BUD-UFC Deal
The new deal is viewed as the largest sponsorship agreement to date in mixed martial arts marketing history, with some sources claiming the figure runs into “nine figures.” As per the deal, Bud Light will hold the exclusive promotion rights at UFC’s fights and events. Plus, Bud Light will collaborate on original content for UFC’s digital channels.
UFC claims to have more than 700 million fans, with an estimated viewership of 900 million TV households across 170 countries. Bud Light is also a sponsor of the iconic National Football League (NFL), with a new contract signed with the Washington Commanders this August.
Bud Light’s sales this year were marred by its association with transgender influencer Dylan Mulvaney and the strong opposition to supporting Pride Month. The uprising put Modelo back in the spotlight as the number-one beer in the U.S. Anheuser Busch is excited about its renewed partnership with UFC, as this will boost Bud Light’s presence in one of the most powerful and popular mixed martial arts sports.
Is BUD a Good Stock to Buy?
BUD stock has a Strong Buy consensus rating on TipRanks. This is based on six Buys and one Hold rating. The average Anheuser-Busch InBev price target of $69.75 implies 30.6% upside potential from current levels. BUD stock has lost 9.5% so far this year.
