Disney and NFL Rewrite the Playbook: NFL Owners Approve Landmark Deal
The deal will need to go through an anti-trust review prior to its closure.
Disney and the National Football League have reached a new agreement that could see a major shift in the relationship between sports leagues and sports media.
What’s Happening:
- The Sports Business Journal is reporting that NFL owners have approved the league's deal with the Walt Disney Company that would see the league sell the NFL Network and other NFL Media assets (NFL.com, NFL RedZone, etc.) to Disney.
- In return, the league would receive 10% ownership of ESPN.
- ESPN is currently 100% owned by Disney, and if the deal is approved, it would change many ways that professional football would be broadcast on the network.
- In addition to the business relationship, it could mean a more aligned look at program sharing, streaming rights, and marketing.
- The deal will need to go through a government antitrust review, which could take months.
- As a part of the deal, Disney would be in control of the NFL Network, and would also end the Monday Night Football cross-over games.
- It may also mean program shifting from ESPN to NFL Network, which would also be owned by Disney.
- For streaming fans, this could also increase the amount of NFL content available on Disney-owned streaming platforms.
- It’ll be interesting to see how Disney and the NFL reorganize their broadcast strategy if the deal is approved.
- I am skeptical of this deal, as it continues a trend for Disney that has seen the media-giant trying to acquire more and more of the sports market.
- While mega sports streaming service Venture Sports is dead, this feels like a roundabout way of monopolizing more of the sports broadcasting sphere.
- The blurring lines between sports league and sports media could lead towards a dangerous path of decimating competition from other live TV broadcasters, streaming services and more.
- In the age of streaming, media profit has seen a significant down-turn as many consumers turn away from linear broadcasting so it makes sense for companies like Disney to try and earn the largest profit off of their streaming services.
- However, this move feels like a slippery slope.
- It will be interesting to see how this deal plays out legally.
What They’re Saying:
- Hans Schroeder, NFL’s EVP/Media Distribution: “There’s a number of steps in a transaction like this and a number of those steps we don’t control. So we’re going to do all that we can. We’re going to cooperate, we’re going to partner, and in the meantime, we’re going to continue to run our business and work with all our partners as we always would. But certainly when it does close, I think we’re really excited." He also added “This is an opportunity for football fans to get more football from more places, more types of content."
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