NFL to take 10% stake in ESPN in new media rights deal
The non-binding agreement will give ownership and control of the NFL Network to ESPN, while ESPN will also license additional NFL games, NFL RedZone and NFL Films programming from the league. The two sides will also merge their fantasy football operations.
'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 A. Iger, chief executive officer of The Walt Disney Company said in a statement.
'Since its launch in 2003, NFL Network has provided millions of fans unprecedented access to the sport they love,' NFL Commissioner Roger Goodell said in a statement. 'The Network's sale to ESPN will build on this remarkable legacy, providing more NFL football for more fans in new and innovative ways.'
The deal would license broad rights to the RedZone brand and linear distribution of the RedZone Channel to ESPN.
ESPN's platforms will gain rights to an additional three NFL games per season, while some games previously licensed to ESPN will air on NFL Network, which will continue to broadcast seven games per season.
'This is an exciting day for sports fans,' Jimmy Pitaro, chairman of ESPN, said in a statement. 'By combining these NFL media assets with ESPN's reach and innovation, we're creating a premier destination for football fans,' said Jimmy Pitaro, chairman of ESPN.
'This deal helps fuel ESPN's digital future, laying the foundation for an even more robust offering as we prepare to launch our new direct-to-consumer service.'
The NFL will continue to own and operate properties such as NFL Films, NFL.com, the official NFL team websites and more. The league will retain digital distribution rights to NFL RedZone, which it will continue to own and operate.
The transactions are subject to further negotiation and approvals, including by the NFL team owners.
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