NFL Gets 10% Equity Stake in ESPN in Exchange for the NFL Network, Other Digital Media Assets
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Disney’s ESPN and the National Football League Aug. 5 announced a non-binding agreement under which ESPN will acquire NFL Network and certain other media assets owned and controlled by the NFL, including the league’s linear RedZone Channel, and NFL Fantasy — in exchange for a 10% equity stake in ESPN.
In addition to the sale of NFL Network, which launched in 2003 creating Thursday Night Football, the Combine, and related football stories through original shows and breaking news, 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.
These transactions aim to set a new standard for how professional football is delivered and experienced and by fans, according to Disney CEO Bob Iger.
“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,” Iger said in a statement.
Indeed, NFL programming will be made available on more platforms, including ESPN’s upcoming $29.99 monthly direct-to-consumer service launching in the fall, while remaining on cable, satellite and third-party streaming providers such as Hulu + Live TV, YouTube TV, Fubo, and Sling TV, among others.
“The Network’s sale to ESPN will build on this remarkable legacy, providing more NFL football for more fans in new and innovative ways,” added NFL Commissioner Roger Goodell.
Jimmy Pitaro, chairman of ESPN, said the deal helps fuel ESPN’s digital future, laying the foundation for the new direct-to-consumer service.
The legacy sports networks intends to deploy its resources and expertise in the development of NFL Network, distribution of the RedZone Channel and fantasy, to expand audience reach, increase accessibility and flexibility for consumers, drive innovation, and offer more content to fans at highly competitive prices.
“By combining these NFL media assets with ESPN’s reach and innovation, we’re creating a premier destination for football fans,” Pitaro said. “Together, ESPN and the NFL are redefining how fans engage with the game.”