ESPN To Acquire NFL Network

After many years of speculation, Disney has officially announced that they’ve agreed to acquire the 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% 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.

This new deal will allow fans to benefit from increased consumer choice, greater accessibility, and expanded high-quality programming and content offerings through ESPN.

These transactions between America’s most popular sporting league and the world’s most innovative sports media leader are designed to set a new standard for how professional football is delivered, experienced and celebrated by fans.

Robert A. Iger, Chief Executive Officer of The Walt Disney Company, said in a statement regarding the deal:

“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.  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 also added:

“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.”

With Jimmy Pitaro, Chairman of ESPN, also adding:

“This is an exciting day for sports fans.  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.”

This new relationship brings together some of the NFL’s premier media brands and fan-engagement platforms with ESPN’s deep experience in producing and distributing high-quality and innovative sports programming. ESPN 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 even more high-quality content to fans at highly competitive prices. As a result of this sale, 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 leading streaming providers. ESPN’s DTC offering will deliver an array of NFL content to subscribers.

Here are some of the terms of this agreement:

• NFL Network, including both linear and digital rights, would be owned and operated by ESPN and fully integrated into ESPN DTC, alongside traditional pay television distribution, increasing accessibility and flexibility for consumers and promoting innovation in sports programming.
• ESPN would own broad rights to the RedZone brand and distribute the NFL RedZone Channel to pay TV operators for continued inclusion into their sports packages.
• NFL Fantasy Football would merge with ESPN Fantasy Football, creating the official Fantasy season-long game of the NFL and one best-in-class digital experience, driving innovation and enabling broader reach to meet global demand.
• In total, ESPN’s platforms will license an additional three NFL games per season to air on NFL Network as a result of today’s news. In addition, ESPN will adjust its overall NFL game schedule, with four games (including some from overlapping windows) shifting to the NFL Network, which will continue to present seven games per season.
• The NFL will continue to own and operate its retained media businesses, including properties such as NFL Films and key fan-facing platforms such as NFL+, NFL.com, the NFL Podcast Network, the NFL 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.

The transactions are subject to the parties’ negotiation of definitive agreements, various approvals, including by the NFL team owners, and customary closing conditions.

The New England Patriots owner, Robert Kraft, has also spoken about the deal with the NFL, highlighting that the partnership with Disney will lead to growing the NFL brand globally. 

Roger’s Take:  This is a big step forward for ESPN to secure access to some NFL media assets for a long time to come, allowing the platform to compete with Netflix and Amazon, which are only going to continue expanding into the sports programming business.   Incorporating the NFL Network, along with other assets, into the new ESPN direct-to-consumer platform, set to launch soon, will encourage more people to sign up and stay signed up for access to NFL content.  

The addition of more NFL games in the package will also benefit ESPN, as these games will provide exclusive content for its new sports streaming service. 

The NFL has been trying to offload its media assets for many years, especially as audiences shift away from linear television, so this new deal, gives them a way of focusing on their core assets, while partnering with a huge sports network.

Unfortunately, no details regarding how Disney is planning on incorporating the NFL Network and other content into the ESPN hub on Disney+ internationally, but this might be limited due to other agreements already in place, ie DAZN is in the middle of a ten-year deal to offer NFL Gamepass, but it’s going to depend on what’s in that contract regarding if they have the exclusive streaming rights to the NFL Network included in that previous deal.

What do you think of ESPN joining forces with the NFL Network?  Let me know on social media!