ESPN and the NFL announced Tuesday night that they have a deal.
ESPN made the announcement ahead of the earnings call of its parent company, The Walt Disney Company, on Wednesday.
ESPN will acquire NFL Network and certain other media assets owned and controlled by the NFL, including NFL’s linear RedZone Channel and NFL Fantasy, in exchange for a 10 percent equity stake in ESPN. 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.
“Since its launch in 2003, NFL Network has provided millions of fans unprecedented access to the sport they love,” NFL Commissioner Roger Goodell said in a statement. “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.”
ESPN platforms will license three additional NFL games per season, giving it a total of 28. NFL Network will continue to show seven games per season, with some games shifting to NFL Network from ESPN’s original schedule.
ESPN will own broad rights to RedZone, including the trademark, and continue to distribute the channel to pay TV operators. The NFL will continue to own, operate and produce the RedZone channel and will keep the rights to distribute it digitally.
The league will also continue to own and operate some of its media businesses, including NFL Films and NFL.com.
“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,” Robert A. Iger, CEO of The Walt Disney Company said in a statement. “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.”
The deal will require federal regulatory approval.
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