Bud Light partners with UFC in the 'biggest sponsorship deal in the sport's history'

UFC has struck a lucrative deal with Bud Light.

Anheuser-Busch confirmed earlier this week that Bud Light will be the official beer sponsor for the American mixed martial arts championship after parting ways with Modelo.

According to a source who spoke to CNBC, the multi-year deal is ‘well into the nine figures’, which would make it 'one of the biggest sponsorship deals in the sport's history'.

Another insider told MMA Fighting the deal was worth $100 million.

As part of the agreement, Bud Light will be served at UFC fighting events and promotions, with the deal officially kicking off on January 1.

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“Anheuser-Busch and Bud Light were UFC’s original beer sponsors more than 15 years ago,” UFC CEO Dana White said in a statement.

“I’m proud to announce we are back in business together.

"There are many reasons why I chose to go with Anheuser-Busch and Bud Light, most importantly because I feel we are very aligned when it comes to our core values and what the UFC brand stands for.

"I’m looking forward to all of the incredible things we will do in the years ahead.”

Anjali S. Bal, an associate professor of marketing at Babson College, told the Wall Street Journal she believed it was a ‘good move’ for the company.

“This is a growing sport that is appealing to younger generations in a nonpolitical manner, and focuses on what the brand is known for—sports, entertainment, excitement and socialization,” she told the outlet.

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It comes after Bud Light significantly plummeted in sales and stock following the backlash from conservatives over its partnership with transgender activist Dylan Mulvaney.

The beer celebrated Mulvaney’s '365 days of womanhood' with a customized can adorned with an illustration of her face, which she unveiled to her followers on social media.

Days after the promotion, it was reported that Anheuser-Busch lost $5 billion (AUD $7.4 billion), with many declaring they would boycott the beer.

Kid Rock even famously shared a video of him shooting cans of Bud Light to his social media, telling his followers: "Grandpa is feeling a little frisky today.

"Let me say something to y'all and be as clear and concise as possible," he continued before the camera panned to reveal he was holding the weapon before shooting some crates of Bud Light placed on a table in the distance.

"F**k Bud Light and f**k Anheuser-Busch. Have a terrific day," the singer added.