The National Football League (NFL) will take a 10% stake in the ESPN sports network under a US$2 billion to US$3 billion (A$3.1 billion to A$4.6 billion) deal to sell its NFL Network and other assets to the Walt Disney Company subsidiary.
The NFL said it would sell the NFL Network and other media assets, including the NFL’s linear RedZone Channel and NFL Fantasy, to ESPN, which is 80% owned by Disney and 20% by Hearst Communications.
The NFL and ESPN are also entering into a second non-binding agreement, under which the NFL will license to ESPN certain NFL content and other intellectual property to be used by NFL Network and other assets.
The NFL will retain media businesses including NFL Films, NFL RedZone and fan-facing platforms such as NFL+, NFL.com, the NFL Podcast Network, the NFL FAST Channel and the official sites for the league’s 32 clubs.
“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,” Walt Disney Chief Executive Officer Robert Iger said in a news release.
NFL Commissioner Roger Goodell said NFL Network had provided millions of fans with unprecedented access to American football since its launch in 2003, including delivering original shows and breaking news.
The NFL said NFL programming would be available on more platforms, including ESPN’s upcoming direct-to-consumer service, while remaining on cable, satellite and leading streaming providers.
“By combining these NFL media assets with ESPN’s reach and innovation, we’re creating a premier destination for football fans,” ESPN Chairman Jimmy Pitaro said.
Walt Disney shares closed $1.03 (0.86%) lower at $118.32, capitalising the company at $212.71 billion.
Disney acquired EPSN in 1996 as it expanded into sports media, broadening its portfolio to include the ESPN, ESPN2 and ESPN News television channels, ESPN+ streaming service, digital platforms, and broadcasting rights to sports including the NFL, National Basketball Association and college sports.
