A historic deal in the U.S. media industry has been made as Walt Disney’s ESPN made an agreement with the National Football League (NFL), trading its 10% equity stake for NFL Network, NFL Fantasy, its digital offering, and a right to to broadcast the NFL RedZone.
ESPN stated that this agreement will likely enhance its streaming service, which, according to Disney CEO Robert Iger, will launch as early as this month. However, it still needs to face regulatory approval, and the financial terms regarding the deal were not made public.
Nonetheless, if the acquisition is successful, ESPN will include NFL into the list of professional and college sports the company already broadcasts, such as the NBA and WNBA, MLB and the NCAA Women’s Basketball Championship, as well as SportsCenter and Pardon the Interruption studio show.
Iger pointed out that NFL fans will soon have an opportunity to receive a more compelling experience that only ESPN and Disney can provide. According to the Athletic, sports journalism from The New York Times, this agreement could be worth billions of dollars.
The NFL launched its exclusive sports television network back in 2003 with a purpose of generating revenue through cable and satellite subscriptions. Although it delivered several famous sports programs, it still cannot compete with ESPN.
Nonetheless, NFL Commissioner Roger Goodell stated that the network legacy will continue within ESPN. The league also owns and retains some of its rights on certain media and platforms. This includes NFL RedZone, NFL Films, the NFL Podcast Network and NFL+.
