The Sports Business Journal reports that the UFC’s recent sponsorship deal with Aurora Cannabis is for 5 years and $15 million per. The report is based on a source obtained through the SBJ.

CBD products are formulated from the non-psychoactive chemical in marijuana plants. Nate Diaz was seen at his last post-fight with a vape pen stating he was using CBD.

With little fanfare, the CBD company inked a sponsorship deal with the UFC last week. It has yet to be announced by the company formally although the SBJ article notes that an industry source says the deal is worth 5 years at an annual average of $15 million. The UFC’s senior vice president of global partnerships, Paul Asencio, did not confirm or deny the report. Asencio said that the deal took less than 3 months to complete and that the UFC had meetings with “five or six other CBD companies.”

UFC fighters have been promoting CBD products for a while now on podcasts and other venues as the industry is booming. The SBJ article reported on the rise of CBD sponsorships and how some believe it is the next big industry.

The deal with Aurora Cannabis includes octagon placement and content rights and is one of the UFC’s five largest sponsorships.

Payout Perspective:

The report is not surprising given the rise of the industry and the fact that several states have fully legalized marijuana. The UFC has been active in its signing of sponsors to its various exclusive categories. It has always been an early adapter and with the ownership change it has made moves to sign a vodka sponsor, hard liquor sponsor and more. With scooping up a CBD sponsor seemed natural.