NFL and ESPN come to a non-subtraint agreement for the sale of NFL Network and other multimedia assets

Since the NFL announced that it was looking to sell NFL Network and other media assets, ESPN had been considered one of the favorites to conclude an agreement.

Almost five years later, a framework is finally in place.

The NFL announced on Tuesday evening that it had concluded an agreement of non-control with ESPN. Under the terms, ESPN will acquire NFL Network, NFL Fantasy and the rights to distribute the Redzone channel to cable and satellite operators and the league will benefit from a 10% stake in ESPN.

The League and the ESPN must still negotiate a final agreement and obtain the approval of the owners of the NFL. The agreement will also have to undergo regulatory approvals.

“Sometimes, great things take a long time to get to the point where it is right. And we both think that it is at this stage,” said NFL commissioner Roger Goodell, during a call with the Associated Press.

In addition to the sale of NFL Network, the NFL and ESPN will have a second non-consenting agreement where the NFL will be dismissed in ESPN certain contents of the NFL and other intellectual properties that can be used by NFL Network and other assets that have been purchased.

“We have been talking about it seriously for a few years. But it has been interesting, we started talking about it more than a decade ago, but nothing really ended up happening. And we came back to it when I returned to Disney after my retirement,” said Disney CEO, Bob Iger, during an AP.

What the ESPN gets

ESPN should launch its direct service to consumers before the end of September. The service would give the cords access to all the ESPN programs and networks for US $ 29.99 per month. The addition of more NFL programming increases the value.

Many viewers will receive the service for free as part of their cable subscription, by satellite and most streaming services.

“When I returned to Disney and I mainly evaluated the future of ESPN, it has become clear that ESPN had to launch a larger and more robust or direct or direct product to the consumer, not only for ESPN affairs, but for the sports fan,” said Iger. “And obviously, when you start to think of high quality sporting content, your eyes immediately go to NFL because there is really nothing more precious and more popular than that.

The NFL Redzone canal would be distributed by ESPN to cable and satellite operators. However, the NFL will continue to own, exploit and produce the canal as well as keep the rights to distribute the canal digitally. ESPN would also obtain rights on the Redzone brand, which means that Redzone Channels for university football and basketball or other sports could arrive in the future.

The fantastic football of the NFL would merge with Espn Fantasy Football, giving ESPN the fantastic fantastic football match of the League.

NFL Network will still broadcast seven games per season. Four of the ESPN games, including some that overlap Windows on Monday evening, would go to the NFL network. ESPN will drive three additional games that will be transported to NFL Network.

What the NFL receives (and keeps)

The league obtains a 10% stake in ESPN. Aidan O’Connor, Vice-President Director of the Prosek Partners marketing company, estimates that the value of that of $ 2.2 billion at $ 2.5 billion.

ESPN is currently 80% belonging to ABC Inc. as an indirect subsidiary of the Walt Disney Company. The remaining 20% belong to Hearst. There is not yet a word to know if the participation of 10% for the NFL would all come from the participation of ABC or if it would be 5% each of ABC and Hearst.

This is not the first time that the League has benefited from participation in a digital or communication company. There was this in the past with Sirius Satellite Radio and Sportsline. The NFL could also have equity in the new “Paramount Skydance Corporation”, which owns CBS, due to the League partnership with Skydance.

The League will continue to own and operate NFL Films, NFL +, NFL.com, the official websites of the 32 teams, the NFL Podcast Network and the NFL Fast Channel (a free advertising streaming chain).

“The movements are aligned with the long -standing ambition of the NFL to reach $ 25 billion in annual income by 2027 – a target for the first time in 2010, when the league income amounted to around 8.5 billion dollars,” said O’Connor. “Financially, the move also signals to investors that ESPN doubles the differentiation and adhesion of the content by offering a rare and premium product in a crowded market. Intentionally yielding the capital to the NFL transform ESPN of a licensee of the media into a real platform partner-with few properties rivaling on the League in terms of cultural significance, viewing of the platform, Monetization. “

No major changes yet

Viewers will probably see no immediate impact before next year once everything is approved.

Besides ESPN, the largest winner of this NFL network, which had experienced discounts of the original programming in the past two years. “Total Access”, the flagship show of the network since its launch in 2003, ended in May 2024 in the middle of a series of layoffs and cost reduction movements. “Good Morning Football” also moved from New York, where he was since his start in 2016, in South California last year.

NFL Network moved to a broadcast installation opposite the Sofi stadium in Inglewood, California, in 2021.

“What is exciting for us is that we have put a lot in the network. I think it was very effective for fans. We know that it is in good hands,” said Goodell. “They are innovative, they recognize great production and know how to produce it. They will do a fantastic job to exploit the network and bring it to another level.”