Regulators Approved Massive Deal Between ESPN and the NFL

ESPN will take control of the NFL Network and other media assets in exchange for 10% ownership of the network.
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The landmark deal between ESPN and NFL that was agreed upon in October has been approved by government regulators, opening the door for the deal to close. 

What’s Happening:

  • Back in October, we reported on a massive new deal between the NFL and ESPN that would see the league sell the NFL Network and other NFL Media assets (NFL.com, NFL RedZone, etc.) to Disney.
  • Well, now, after government review, the deal is being allowed to move forward.
  • ESPN acquired NFL Network, NFL Fantasy, and the rights to distribute the RedZone channel to cable and satellite providers.
  • The NFL received a 10% equity stake in ESPN as part of the agreement.
  • NFL employees will begin integrating into ESPN in the coming months, with noticeable changes expected in April.
  • NFL Network, which currently has 50 million subscribers, will also be included in ESPN’s direct-to-consumer streaming service.
  • ESPN will distribute NFL RedZone to cable and satellite operators, while the NFL retains ownership, production, and digital distribution rights.
  • ESPN gains rights to the RedZone brand, opening the possibility of RedZone channels for other sports.
  • NFL Fantasy Football will merge with ESPN Fantasy Football, making ESPN the league’s official fantasy platform.
  • NFL Network will continue to air seven games per season, including games licensed or shifted from ESPN.
  • The NFL has reclaimed rights to four international games and may expand international play in future seasons.
  • The NFL will retain ownership of NFL Films, NFL+, NFL.com, team websites, the NFL Podcast Network, and the NFL FAST Channel.
  • After the deal, ESPN ownership is 72% ABC, 18% Hearst, and 10% NFL.

What They’re Saying:

  • Joint Statement by ESPN and the NFL: "With the closing, we will begin integrating NFL employees into ESPN in the months ahead. As we look to the future, NFL fans can look forward to expanded NFL programming, greater access to NFL Network, innovative Fantasy experiences and unparalleled coverage of America's most popular sport."

Fears of the Streaming Era:

  • 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, and it will be interesting to see the ramifications of this deal long term. 

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Maxon Faber
Based in Los Angeles, California, Maxon is roller coaster and musical theatre nerd. His favorite dinosaur is the parasaurolophus, specifically the one in Jurassic World: The Ride.
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