ESPN Inks Deal Acquiring Numerous NFL Media Assets, Including RedZone and NFL Network

Reports indicate that the deal has taken years, and could potentially include equity in ESPN.
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ESPN has reportedly made a deal that will see the network and the new direct-to-consumer service acquire NFL media properties including RedZone and the NFL Network.

UPDATE (5 p.m. PT August 5th):

  • The Walt Disney Company has now confirmed plans to acquire the NFL Network.
  • Both companies have entered into a non-binding agreement for ESPN to acquire NFL Network as well as certain other media assets, including RedZone Channel and NFL Fantasy.
  • In exchange, the NFL will receive a 10% equity stake in ESPN.
  • On top of this deal, ESPN and the NFL will enter into a second non-binding agreement for ESPN to license certain NFL content to be used by NFL Network and beyond.
  • Should these deals close, NFL Network would be fully integrated into ESPN’s upcoming direct-to-consumer product called ESPN.
  • Additionally, Disney would be able to distribute the NFL RedZone Channel to pay TV operators to be included in various sports packages.
  • Also as part of the agreement, ESPN’s platforms will license an additional three NFL games per season to air on NFL Network.
  • In turn, ESPN will adjust its NFL game schedule, with four games shifting to the NFL Network, so that the network will continue to air seven games per season.
  • Meanwhile, NFL Fantasy Football will merge with ESPN Fantasy Football.
  • As for what’s not included, The NFL will own and operate NFL Films, NFL+, NFL.com, the NFL Podcast Network, the NFL FAST Channel, and the official sites for the league’s 32 teams.
  • The NFL will also continue to own, operate, and produce NFL RedZone, and retain the rights to distribute NFL RedZone digitally.
  • Disney says that it expects these deals to close late next year.
  • Not by coincidence, The Walt Disney Company is set to announce its quarterly earnings tomorrow before the bell.
  • Following Laughing Place for a live blog of that call.

What They’re Saying:

  • Bob Iger, Chief Executive Officer of The Walt Disney Company: “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: “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."
  • Jimmy Pitaro, Chairman of ESPN: “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."

Previously (August 1st):

  • Reports are suggesting that the NFL and ESPN have reached an agreement that will see many of the football league’s top media holdings with the network in exchange for equity in ESPN, potentially worth billions of dollars.
  • A report from the New York Times says that the discussions about this deal have been on and off for years, resulting in what is likely a complicated agreement, with ESPN expected to have access to RedZone, NFL Network, additional regular-season games, the NFL’s Fantasy Football assets, the possibility of integrating features (like sports betting), and potentially even more.
  • Many are pointing to how long the discussions have taken as a suggestion as to how complicated the contractual language could be, with the NFL possibly receiving up to 10 percent of ESPN equity, a detail that was reported previously by CNBC, with the possibility that there is a term length to the agreement.
  • The NFL has reportedly been looking to unload a number of its NFL Media properties for years. NFL Network was started in 2003 and was looked upon as a potential competitor to ESPN.
  • While it gained traction, the network never became a true alternative to ESPN, largely because their studio shows focus more attention on the NFL than any other sport.
  • The ESPN-NFL deal will require regulatory approval, which could take nine months to a year. If it were to go into effect next season, it would be one part of a big year for ESPN as the 2026-27 year ends with the network broadcasting its first Super Bowl. The big game will also be broadcast on the Disney-Owned ABC network.
  • No formal announcement of this deal has been made at this time, and is expected next week. After all, the Walt Disney Company, parent company of ESPN, will be holding an earnings call on Wednesday, August 6th.

The App:

  • This news comes only a few weeks ahead of the launch of the highly-anticipated ESPN direct-to-consumer service, which will allow users to view all of the network’s programming without a cable or satellite provider. Those with satellite or cable subscriptions will also be able to watch ESPN through the new service.
  • The announcement above, as well as an official release date for the new app and service are expected next week.
  • The app comes as a solution as ESPN has been hit by cord-cutting and “cable nevers" - young people who have never subscribed to cable at all.
  • In 2011, ESPN was in more than 100 million homes with cable, but by the end of last year, that number was around 65.3 million, according to reports from Nielsen.
  • ESPN already found a bit of success with their ESPN+ app, a direct-to-consumer app featuring UFC fights, some college sports, and other offerings, bringing in 22.5 million subs.
  • The ESPN app launching soon will offer all of the programming from its networks, as well as ESPN+, in a further attempt to stop their subscription loss.
  • Prices for the new service have already been revealed, and you can find out more about it and the new ESPN service in our post, here.
Tony Betti
Originally from California where he studied a dying artform (hand-drawn animation), Tony has spent most of his adult life in the theme parks of Orlando. When he’s not writing for LP, he’s usually watching and studying something animated or arguing about “the good ole’ days” at the parks.
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