ESPN sells 10% stake in return for pay TV channel NFL Network and other NFL media assets
The National Football League (NFL) in the US has taken a 10% stake in Disney-owned sports broadcaster ESPN in return for pay TV channel NFL Network and other NFL media assets.
The deal, financial details of which were not disclosed, will see ESPN acquire NFL Network, NFL’s linear RedZone Channel and fantasy football game NFL Fantasy, which will merge with ESPN Fantasy Football.
In addition to the sale of NFL Network, the NFL and ESPN are also entering into a second non-binding agreement, under which the NFL will license to ESPN certain NFL content and other intellectual property to be used by NFL Network and other assets.
The NFL will continue to own and operate its retained media businesses, including properties such as NFL Films and platforms such as NFL+, NFL.com, the NFL Podcast Network, the NFL free, ad-supported streaming TV (FAST) channel and the official sites for the league’s 32 clubs.
It will also continue to own, operate and produce NFL RedZone and retain the rights to distribute NFL RedZone digitally.
As a result of the sale, Disney said NFL programming will be available on more platforms than ever before, including ESPN’s upcoming direct-to-consumer (DTC) service, while remaining on cable, satellite and other streaming providers.
“Today’s announcement paves the way for the world’s leading sports media brand and America’s most popular sport to deliver an even more compelling experience for NFL fans, in a way that only ESPN and Disney can,” said Robert A Iger, CEO of The Walt Disney Company, which currently owns 80% of ESPN via its subsidiary ABC. The remaining 20% is owned by Hearst.
“Commissioner Goodell and the NFL have built outstanding media assets, and these transactions will add to consumer choice, provide viewers with even greater convenience and quality, and expand the breadth and value proposition of Disney’s streaming ecosystem.”
NFL Commissioner Roger Goodell said: “Since its launch in 2003, NFL Network has provided millions of fans unprecedented access to the sport they love. Whether it was debuting Thursday Night Football, televising the Combine, or telling incredible football stories through original shows and breaking news, NFL Network has delivered. The Network’s sale to ESPN will build on this remarkable legacy, providing more NFL football for more fans in new and innovative ways.”
“This is an exciting day for sports fans,” said Jimmy Pitaro, chairman of ESPN. “By combining these NFL media assets with ESPN’s reach and innovation, we’re creating a premier destination for football fans. Together, ESPN and the NFL are redefining how fans engage with the game – anytime, anywhere. This deal helps fuel ESPN’s digital future, laying the foundation for an even more robust offering as we prepare to launch our new direct-to-consumer service.”
