NFL media assets will be acquired by Disney’s ESPN in a significant deal
DIS.N, Walt Disney’s, opens a new tab The National Football League and ESPN announced a historic agreement Tuesday whereby the NFL would take a 10% equity position in the sports network in exchange for ESPN purchasing NFL Network and other media assets from the league.
No value was offered, and the acquisition is pending regulatory approval. ESPN claimed the deal will improve the offers on its planned ESPN streaming service.
Despite the corporations’ refusal to comment, analysts and industry insiders thought the NFL’s interest in ESPN might be valued between $2 billion and $3 billion.
According to Bob Dorfman, a sports marketing analyst in San Francisco, “it’s difficult to estimate a value except that it’s in the multi-billions.” With all of the programming outside of games, the NFL appears to have no limits on its expansion and worth, making it a year-round sport. Additionally, it will only expand globally.
The rights to broadcast the NFL RedZone television channel to its cable and satellite television subscribers will also be acquired by ESPN, along with NFL Fantasy, a digital product.
“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,” Robert Iger, Disney’s chief executive officer, said in a
Iger has stated that the ESPN streaming service may debut as early as this month. It will cost $29.99 a month. The NFL, NBA, WNBA, MLB, and NCAA Women’s Basketball Championship are among the professional and collegiate sports that ESPN offers, along with studio programs like “SportsCenter” and “Pardon the Interruption.”
In a statement, ESPN Chairman Jimmy Pitaro stated, “We’re creating a premier destination for football fans by combining these NFL media assets with ESPN’s reach and innovation.”
In an attempt to increase its revenue from cable and satellite subscriptions, the league started the NFL Network in 2003. Even though it gained popularity by launching Thursday Night Football, it was never able to compete with ESPN.
The NFL Network would continue to broadcast seven games annually, and ESPN will own and run the network’s TV and streaming rights under the new deal.
NFL Commissioner Roger Goodell stated, “The network’s sale to ESPN will build on this remarkable legacy, providing more NFL football for more fans in new and innovative ways.”
Fans may monitor scoring possibilities throughout Sunday afternoon NFL games with the RedZone program.
NFL RedZone will remain owned, run, and produced by the league, which will also maintain the rights to disseminate it online. Additionally, the league will continue to own several media properties, like NFL Films, as well as platforms, including NFL+ and the NFL Podcast Network.
