ESPN has reached an agreement with the National Football League (NFL) to acquire NFL Network and other media assets, including linear rights to the RedZone channel. In exchange, the NFL will receive a 10% equity stake in ESPN.
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Although neither Disney nor the NFL have officially revealed the economic value of this participation, analysts estimate that ESPN is valued between 25,000 and 30,000 million dollars, according to The Wall Street Journal. In that range, the new percentage in the hands of the league would range between 2,500 and 3,000 million dollars.
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The sports network will now have complete control over NFL Network, including its distribution rights on traditional and digital platforms.
Once the operations are completed and approved by the equipment owners and regulators, Disney’s stake in ESPN will be reduced from 80% to 72%. Meanwhile, Hearst, a minority shareholder, will go from controlling 20% to 18%.
What does the agreement between ESPN and NFL mean for viewers?
Currently, NFL Network reaches about 50 million households, while RedZone reaches less than 10 million. Thanks to the agreement with ESPN, it is expected that this number will grow considerably, taking advantage of the infrastructure and global reach of the sports network.
In addition to NFL Network and RedZone, ESPN will also incorporate the NFL fantasy product into its own platform. This will make ESPN Fantasy Football the league’s official game, a key integration to strengthen the bond with American football fans.
It is planned that NFL Network will be integrated into the future direct-to-consumer streaming service that ESPN will launch at the end of August, although it will also remain available through subscription television operators.
Jimmy Pitaro, president of ESPN, noted in a statement that this alliance aims to create a leading destination for American football fans, and added that the agreement “drives the digital future of ESPN” ahead of the upcoming launch of their streaming service.
Robert Iger, CEO of The Walt Disney Company, celebrated the partnership by emphasizing that it will allow for an enhanced experience for fans, while Roger Goodell, NFL Commissioner, highlighted the historical role of the NFL Network since its creation in 2003.
Changes in the broadcast of games and in the shareholding structure
Within the framework of the alliance, ESPN will also obtain rights to broadcast three additional NFL games per season, increasing its total to 28. Meanwhile, NFL Network will continue to broadcast seven games per season, although some games from ESPN’s original schedule may be reassigned.
The agreement will mean the end of double broadcasts by ESPN-ABC in some Monday Night Football games, as one of those games will be broadcast by NFL Network.
Regarding the RedZone channel, which every Sunday offers live coverage of scoring plays or plays within the last 20 yards of all games, ESPN will acquire the branding rights and continue distributing it through television operators.
The NFL will also continue to own other key media units, including NFL Films and NFL.com, which will remain under its direct control.
The final agreement could be ready during this year and could come into effect by 2026, depending on the confirmation from the regulatory agencies of the Donald Trump government and any potential questioning by legislators.