Ever since NFL announced that it was looking to sell NFL Network and other media assets, ESPN had been seen as one of the favorites to enter into an appointment.
Almost five years later, a frame is finally in place.
NFL announced on Tuesday night that it has entered into a non -binding agreement with ESPN. Under the conditions, ESPN will acquire NFL Network, the NFL Fantasy and the rights to distribute the Redzone channel to the cable and satellite operators and the league gets a 10% equity share in ESPN.
The league and ESPN still have to negotiate a final agreement and get approval from NFL owners. The agreement must also review legislative approvals.
“Sometimes it takes a long time to get to the point where it is right. And we feel it is at this point,” said NFL commissioner Roger Goodell in a call with Associated Press.
Together with the sale of the NFL Network, NFL and ESPN will have another non -binding agreement where NFL will licenses to ESPN certain NFL content and other intellectual property that can be used by NFL Network and other assets purchased.
“We’ve been talking about it seriously for the past few years. But interestingly, we started talking about this over a decade ago, but nothing really ended up happening. And we got back on it when I got back to Disney after my retirement,” Disney CEO Bob Iger said in a call with AP.
What ESPN gets
ESPN is expected to launch its directly to consumer service by the end of September. The service would give wiring cutters access to all ESPN programs and networks for $ 29.99 per day. Month. The addition of more NFL programming increases the value.
Many viewers will receive the service for free as part of their subscription to cable, satellite and most streaming services.
“When I returned to Disney and essentially assessed ESPN’s future, it became clear that ESPN had to launch a larger and more robust and digital or direct to consumer product, not only for the sake of ESPN’s business, but for the sports tab,” Iger said. “And of course, when you start thinking about high quality sports content, your eyes immediately go towards the NFL because there really is nothing more valuable and more popular than that.
The NFL Network-AS has nearly 50 million subscribers-Ville being owned and operated by ESPN and would be included in ESPN’s product from direct to consumer.
The NFL Redzone channel would be distributed by ESPN to cable and satellite operators. However, the NFL will continue to own, serve and produce the channel as well as maintain the rights to distribute the channel digitally. ESPN would also get rights to the Redzone brand, which means that redzone channels for college -football and basketball or other sports could come in the future.
The NFL Fantasy Football would merge with ESPN Fantasy Football, giving ESPN the official fantasy football match in the league.
NFL Network still emits seven matches per year. Season. Four of ESPN’s games, including some who are in overlapping Windows Monday night, would move to NFL Network. ESPN licenses three additional games that will be transported on the NFL Network.
What NFL receives (and preserves)
The league gets 10% equity share in ESPN. Aidan O’Connor, a senior vice president of Prosek Partners marketing company, estimates the value of it would be $ 2.2 billion to $ 2.5 billion.
ESPN is currently 80% owned by ABC Inc. As an indirect subsidiary of Walt Disney Company. The other 20% is owned by Hearst. There is no word yet about whether the 10% share of the NFL would all come from ABC’s share or whether it would be 5% each from ABC and Hearst.
This is not the first time the league has had a equity in a digital or communications company. It had it in the past with Sirius Satellite Radio and SportsLine. The NFL could also have equity in the newly created “Paramount Skydance Corporation”, which owns CBS because of the league’s partnership with Skydance.
“This is new in terms of a partner who now runs a company that we built, ran and grew,” said Hans Schroeder, NFL’s Executive Vice President of Media Distribution. “It will also be a little new again with some of the dynamics here, but we will continue to balance it in a real arm’s length, where we will think about how we manage and work over to all our partners.”
The league will continue to own and operate NFL movies, NFL+, NFL.com, the official sites for the 32 teams, NFL Podcast Network and NFL Fast Channel (a free ad-supported streaming channel).
“The movements are in line with the NFL’s long -standing ambition to reach $ 25 billion in annual revenue by 2027 – a goal that became the first goal of 2010 when league revenue was about $ 8.5 billion,” O’Connor said. “Financial signalizes the move also to investors that ESPN doubles differentiation and content stickiness by offering a button and Premium product in a crowded marketplace. Inventionally returning Equity to NFL, ESPN transforms from a mediolicine gardens to a real platform partner – with few characteristics competing with the league in terms of cultural importance, an appointment, monetization efficiency. “
No major changes yet
Viewers will probably not see any immediate effects until next year when everything is approved.
In addition to ESPN, the biggest winner in this could be NFL Network, which had seen reductions in original programming over the past few years. “Total Access”, the network’s flagship show since the launch in 2003, ended in May 2024 in the middle of a series of redundancies and cost -saving movements. “Good morning football” also moved from New York, where it had been since its inception in 2016, to southern California last year.
The NFL Network moved to a TV facility across the street from Sofi Stadium in Inglewood, California, in 2021.
“What is exciting to us is that we have put a lot into the network. I think it has been very effective for fans. We know it’s in good hands,” Goodell said. “They are innovative, they recognize great production and know how to produce it. They will do a fantastic job of operating the network and taking it to another level.”
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AP NFL: https://apnews.com/hub/nfl