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The Hill
2 days ago
- Business
- The Hill
Trump could be ‘wild card' in NFL, ESPN media deal: 5 things to know
A blockbuster deal between the NFL and ESPN that would clear the way for the Disney-owned sports network to purchase several of the league's top media assets could face a key hurdle before it clears: President Trump. The deal is part of a pivotal move further into streaming for Disney — the parent company of ABC News, which Trump and his allies have regularly attacked over its coverage of his administration and its corporate diversity policies. Here are five things to know about the ESPN-NFL deal and the scrutiny it could face from the Trump administration. Disney is betting big on a streamed future As the value of its traditional broadcast channels and assets has declined, Disney has for years poured hundreds of millions of dollars into livestreamed sports, scripted entertainment offerings and non-linear news coverage. The company plans to launch a new ESPN direct-to-consumer streaming platform this fall, and its deal to acquire the NFL's 'RedZone' brand and other broadcast assets is being widely seen as Disney's biggest bet yet that increased pro football coverage will lure new subscribers. But Trump looms large over the deal, which is expected to need approval from the Justice Department and Federal Trade Commission given the 10 percent stake in ESPN the NFL is set to receive. 'Trump clearly is the wild card in this whole thing,' said Dan Rayburn, a consultant specializing in streamed media. 'We already know how he likes to throw his weight around, and he's had some problems with Disney in the past. So, there's only so much they and the NFL can control here.' When the two sides announced the agreement, which some analysts have estimated could be valued at more than $1 billion, Disney and the NFL did not indicate how quickly the deal would close, an omission seen by some in the business as an acknowledgement it could face roadblocks. As of Friday, Trump had not weighed in publicly on the proposed deal, and the White House declined to comment on any potential involvement from the president when asked by The Hill. A number of MAGA figures quickly voiced opposition to Disney getting into deeper business with the NFL, turning the headline-grabbing megadeal into a political football in a matter of hours. Trumpworld pushes back This week, several conservative pundits and political operatives have suggested the president should use the proposed deal between ESPN and the NFL as leverage over both sides. 'Given ABC News's consistent bias against President Trump why should his administration allow this Disney media purchase to occur?,' asked the right-wing sports media pundit Clay Travis in a social media post. 'Trump's FCC should zealously review any merger request and at minimum insist Disney/ESPN reject all DEI programs and pledge to provide content viewpoint diversity on ABC, ESPN & the NFL Network going forward.' Ari Fleischer, a Fox News contributor and former White House press secretary during the Bush administration, also predicted the president could get involved. 'Given his interest in the NFL, and his history of using media mergers for leverage, it's hard to see him not playing around with this,' Fleischer told Front Office Sports. 'I doubt this will be a straightforward commercial transaction.' Trump and his allies have taken issue with ABC for years. The network paid Trump $15 million to settle a defamation suit last year, an episode the president celebrated and doubled down on by suggesting ABC Late Night comic Jimmy Kimmel, a frequent critic, could soon be taken off the air. The network fired longtime reporter Terry Moran after he criticized Trump aide Stephen Miller in a social media post, and White House officials regularly bemoan segments on the network's daytime table talk program 'The View.' Threats to have the FCC to scrutinize ABC's broadcast license and Trump's repeated attacks against Disney's 'woke' corporate diversity policies could leave some investors in the company nervous the president may use the NFL, ESPN deal as another weapon against the conglomerate. Trump feels he's 'on a roll' against media The president has sued and successfully extracted settlement payments out of several leading media companies during his first seven months in office. Trump has litigation pending against Rupert Murdoch's Wall Street Journal and made a habit of boasting in social media posts and speeches about holding news outlets 'accountable,' for coverage he feels is unfair to him. His FCC chair, Brendan Carr, has likewise slammed major news networks and praised 'New Paramount,' the newly formed Hollywood giant which owns CBS News, for making a commitment to represent a more 'diverse set of viewpoints' in its news coverage. 'New Paramount,' took heat from critics for agreeing to scale back its diversity, equity and inclusion efforts as it worked to win approval of its merger with Skydance from Trump's FCC. 'Trump thinks he's on a roll against the media, and you can see why,' one national Republican strategist told The Hill in recent days. Others say Trump's complicated relationship with the NFL, rather than Disney, could nudge him toward intervening in a deal seen as critical to both sides' future. Trump and the NFL have a history Trump, a former New York City businessman and real estate mogul, has tried several times since the 1980s to purchase an NFL franchise. He once led a lawsuit by the now-defunct USFL to merge with the NFL, and called for a boycott of the league during his first term over players who protested for racial justice during the National Anthem before games. Most recently, Trump threatened to hold up a deal to build a new stadium in Washington, D.C., for the Washington Commanders if the organization did not revert to the team's original name. Some of the president's supporters have suggested the Commanders' name change could be used as a bargaining chip in the regulatory approval process for NFL-ESPN media rights deal. Given the NFL's broad popularity, and the president's desire to drive headlines on cultural touchstones, allies of the president see the league's blockbuster deal as an opportunity for the president to turn the heat up on both sides. War between tech, media companies grows hotter Legacy media companies like Disney have seen their bottom lines and audience shares threatened by a growing number of major tech and streaming companies like Apple, Amazon and Netflix, all of which have disrupted the live sports broadcasting market in a big way. Disney's ceding of 10 percent of its crown jewel in ESPN is being seen by industry observers as a firm return punch, one that signals the Bob Iger-led company believes it can shore up its relationship with the country's most popular sports league at a time of growing threats from Big Tech. Irwin Kishner, a trade attorney who specializes in sports law, called Disney's deal with the NFL a 'defensive move' against Silicon Valley and predicted Trump throwing up a roadblock to the deal would be a major setback for the company. 'Professional sports programming is the most valuable content you can have,' Kishner told The Hill. 'For traditional media companies, who also provide news coverage and other content, there are always many factors going into deals like this. So, it's a balancing act when it comes to dealing with this or any administration.'
Time of India
3 days ago
- Business
- Time of India
ESPN-NFL deal faces regulatory hurdles
The National Football League's deal with Walt Disney in which it will gain an equity stake in ESPN in return for prime media assets is expected to face scrutiny from the U.S. Department of Justice, according to legal experts and industry sources. The agreement, announced late Tuesday, involves Disney's ESPN acquiring the NFL Network and other media properties in exchange for the league receiving a 10 percent stake in the sports network. Andre P. Barlow, a partner at Doyle, Barlow & Mazard, said the transaction "surely raises competition concerns," because it could potentially give Disney greater control over televised sports carriage and reduce competition. "The deal could potentially result in higher costs for consumers, as Disney's dominance in sports media could limit options and drive up prices for streaming services or game access," Barlow said. The Justice Department is expected to conduct a substantive review of the new ESPN-NFL transaction, according to one source familiar with the matter who spoke on condition of anonymity. Another source said obtaining U.S. antitrust clearance could take up to 12 months. ESPN and the NFL declined comment. The expected review comes as the Justice Department's Antitrust Division is examining a separate deal Disney reached earlier this year to acquire a controlling stake in the sports streaming service Fubo TV. The division demanded further information from the companies in March to examine whether the deal would unduly concentrate the market for sports streaming. Meanwhile, the issue of rising costs for fans as games migrate to streaming services has reached the Senate, where the Commerce Committee held a hearing in May. "In an era of deep partisan division, sports might be the most powerful cultural unifier we have," said Republican Senator Ted Cruz of Texas, who chairs the committee, noting it brings together Americans whether they're watching from their couches or in the stands. "But those millions of fans are asking a simple question: 'Why does it seem to be getting harder -- and more expensive -- to just watch the game?'" John Bergmayer, legal director of the non-profit Public Knowledge, voiced the same concerns. "The proliferation of streaming services -- and the fragmentation of content between them -- means that the costs of watching streaming video are rising, and for many people can approach what they were paying on their cable bill," said Bergmayer in testimony to the committee. "Some viewers feel like they finally broke free of the cable bundle only to watch it re-forming (before) their eyes." ESPN STREAMING SERVICE The NFL has done outreach to 30 congressional offices to discuss the terms of its deal with ESPN and how it would result in greater consumer choice, according to one of the sources. Under the agreement, ESPN would be able to add the NFL Network to its breadth of sports programming and incorporate it as part of its ESPN-branded streaming service. ESPN also plans to merge its fantasy football offering with that of the NFL. ESPN also will be able to distribute the NFL's RedZone to cable and satellite TV distributors, along with its other channels. The NFL will retain streaming rights to NFL RedZone, which is available online through YouTube TV. Disney won swift approval for its $71 billion acquisition of 21st Century Fox's entertainment assets in 2018, during President Donald Trump's first term, though it was required to divest Fox's 22 regional sports networks to address competition concerns. At the time, Trump called to congratulate the Fox's Rupert Murdoch on the deal. "It was worked out in record time," said Barlow, adding that this time around, he expects the Justice Department "to take a close look before approving the deal." One recent media deal, the $8.4 billion merger of Paramount Global and Skydance Media, became bogged down in a lengthy regulatory review, as President Donald Trump sued Paramount, claiming the CBS News program "60 Minutes" deceptively edited an interview with his Democratic rival for the White House, former Vice President Kamala Harris. The Federal Communications Commission approved the transaction within days of Trump receiving a $16 million settlement, though FCC Chairman Brendan Carr said the civil suit and regulatory review were unrelated. Politics could complicate the deal. Some sports industry insiders pointed to Trump's threats to interfere with a deal to build a new football stadium in Washington, D.C., unless the local NFL team, now known as the Commanders, changes its name back to Redskins, which was abandoned after decades of criticism that it was a racial slur. ESPN is currently 80 percent owned by ABC Inc as an indirect subsidiary of Disney, with the other 20% owned by Hearst. If the deal is approved, ABC's stake would drop to 72 percent and Hearst would fall to 18 percent to grant the NFL a 10 percent stake.
Express Tribune
3 days ago
- Business
- Express Tribune
Disney faces regulatory hurdles
The National Football League's deal with Walt Disney in which it will gain an equity stake in ESPN in return for prime media assets is expected to face scrutiny from the US Department of Justice, according to legal experts and industry sources. The agreement, announced this week, involves Disney's ESPN acquiring the NFL Network and other media properties in exchange for the league receiving a 10% stake in the sports network. Andre P. Barlow, a partner at Doyle, Barlow & Mazard, said the transaction "surely raises competition concerns," because it could potentially give Disney greater control over televised sports carriage and reduce competition. "The deal could potentially result in higher costs for consumers, as Disney's dominance in sports media could limit options and drive up prices for streaming services or game access," Barlow said. The Justice Department is expected to conduct a substantive review of the new ESPN-NFL transaction, according to one source familiar with the matter who spoke on condition of anonymity. Another source said obtaining US antitrust clearance could take up to 12 months. The expected review comes as the Justice Department's Antitrust Division is examining a separate deal Disney reached earlier this year to acquire a controlling stake in the sports streaming service Fubo TV. The division demanded further information from the companies in March to examine whether the deal would unduly concentrate the market for sports streaming. Meanwhile, the issue of rising costs for fans as games migrate to streaming services has reached the Senate, where the Commerce Committee held a hearing in May. "In an era of deep partisan division, sports might be the most powerful cultural unifier we have," said Republican Senator Ted Cruz of Texas, who chairs the committee, noting it brings together Americans whether they're watching from their couches or in the stands. "But those millions of fans are asking a simple question: 'Why does it seem to be getting harderand more expensiveto just watch the game?'" John Bergmayer, legal director of the non-profit Public Knowledge, voiced the same concerns. "The proliferation of streaming servicesand the fragmentation of content between themmeans that the costs of watching streaming video are rising, and for many people can approach what they were paying on their cable bill," said Bergmayer in testimony to the committee. "Some viewers feel like they finally broke free of the cable bundle only to watch it re-forming (before) their eyes." ESPN streaming service The NFL has done outreach to 30 congressional offices to discuss the terms of its deal with ESPN and how it would result in greater consumer choice, according to one of the sources. Under the agreement, ESPN would be able to add the NFL Network to its breadth of sports programming and incorporate it as part of its ESPN-branded streaming service. ESPN also plans to merge its fantasy football offering with that of the NFL. ESPN also will be able to distribute the NFL's RedZone to cable and satellite TV distributors, along with its other channels. The NFL will retain streaming rights to NFL RedZone, which is available online through YouTube TV. Disney won swift approval for its $71 billion acquisition of 21st Century Fox's entertainment assets in 2018, during President Donald Trump's first term, though it was required to divest Fox's 22 regional sports networks to address competition concerns. At the time, Trump called to congratulate the Fox's Rupert Murdoch on the deal. "It was worked out in record time," said Barlow, adding that this time around, he expects the Justice Department "to take a close look before approving the deal." One recent media deal, the $8.4 billion merger of Paramount Global and Skydance Media, became bogged down in a lengthy regulatory review, as President Donald Trump sued Paramount, claiming the CBS News program "60 Minutes" deceptively edited an interview with his Democratic rival for the White House, former Vice President Kamala Harris. The Federal Communications Commission approved the transaction within days of Trump receiving a $16 million settlement, though FCC Chairman Brendan Carr said the civil suit and regulatory review were unrelated. Politics could complicate the deal. Some sports industry insiders pointed to Trump's threats to interfere with a deal to build a new football stadium in Washington, D.C., unless the local NFL team, now known as the Commanders, changes its name back to Redskins, which was abandoned after decades of criticism that it was a racial slur. ESPN is currently 80% owned by ABC Inc as an indirect subsidiary of Disney, with the other 20% owned by Hearst. If the deal is approved, ABC's stake would drop to 72% and Hearst would fall to 18% to grant the NFL a 10% stake.
The Star
4 days ago
- Business
- The Star
Analysis-ESPN-NFL deal faces regulatory hurdles
LOS ANGELES (Reuters) -The National Football League's deal with Walt Disney in which it will gain an equity stake in ESPN in return for prime media assets is expected to face scrutiny from the U.S. Department of Justice, according to legal experts and industry sources. The agreement, announced late Tuesday, involves Disney's ESPN acquiring the NFL Network and other media properties in exchange for the league receiving a 10 percent stake in the sports network. Andre P. Barlow, a partner at Doyle, Barlow & Mazard, said the transaction "surely raises competition concerns," because it could potentially give Disney greater control over televised sports carriage and reducecompetition. "The deal could potentially result in higher costs for consumers, as Disney's dominance in sports media could limit options and drive up prices for streaming services or game access," Barlow said. The Justice Department is expected to conduct a substantive review of the new ESPN-NFL transaction, according to one source familiar with the matter who spoke on condition of anonymity. Another source said obtaining U.S. antitrust clearance could take up to 12 months. ESPN and the NFL declined comment. The expected review comes as the Justice Department's Antitrust Division is examining a separate deal Disney reached earlier this yearto acquire a controlling stake in the sports streaming service Fubo TV. The division demanded further information from the companies in March to examine whether the deal would unduly concentrate the market for sports streaming. Meanwhile, the issue of rising costs for fans as games migrate to streaming services has reached the Senate, where the Commerce Committee held a hearing in May. "In an era of deep partisan division, sports might be the most powerful cultural unifier we have," said Republican Senator Ted Cruz of Texas, who chairs the committee, noting it brings together Americans whether they're watching from their couches or in the stands. "But those millions of fans are asking a simple question: 'Why does it seem to be getting harder -- andmore expensive -- to just watch the game?'" John Bergmayer, legal director of the non-profit Public Knowledge, voiced the same concerns. "The proliferation of streaming services -- and the fragmentation of content between them --means that the costs of watching streaming video are rising, and for many people can approach what they were paying on their cable bill," said Bergmayer in testimony to the committee. "Some viewers feel like they finally broke free of the cable bundle only to watch it re-forming (before) their eyes." ESPN STREAMING SERVICE The NFL has done outreach to 30 congressional offices to discuss the terms of its deal with ESPN and how it would result in greater consumer choice, according to one of the sources. Under the agreement, ESPN would be able to add the NFL Network to its breadth of sports programming and incorporate it as part of its ESPN-branded streaming service. ESPN also plans to merge its fantasy football offering with that of the NFL. ESPN also will be able to distribute the NFL's RedZone to cable and satellite TV distributors, along with its other channels. The NFL will retain streaming rights to NFL RedZone, which is available online through YouTube TV. Disney won swift approval for its $71 billion acquisition of 21st Century Fox's entertainment assets in 2018, during President Donald Trump's first term, though it was required to divest Fox's 22 regional sports networks to address competition the time, Trump called to congratulate the Fox'sRupert Murdoch on the deal. "It was worked out in record time," said Barlow, adding that this time around, he expects the Justice Department "to take a close look before approving the deal." One recent media deal, the $8.4 billion merger of Paramount Global and Skydance Media, became bogged down in a lengthy regulatory review, as President Donald Trump sued Paramount, claiming the CBS News program "60 Minutes" deceptively edited an interview with his Democratic rival for the White House, former Vice President Kamala Harris. The Federal Communications Commission approved the transaction within days of Trump receiving a $16 million settlement, though FCC Chairman Brendan Carr said the civil suit and regulatory review were unrelated. Politics could complicate the deal. Some sports industry insiders pointed to Trump's threats to interfere with a deal to build a new football stadium in Washington, D.C., unless the local NFL team, now known as the Commanders, changes its name back to Redskins, which was abandoned after decades of criticism that it was a racial slur. ESPN is currently 80 percent owned by ABC Inc as an indirect subsidiary of Disney, with the other 20% owned by Hearst. If the deal is approved, ABC's stake would drop to72 percent andHearst would fall to 18 percent to grant the NFL a 10 percent stake. (Reporting by Jody Godoy in New York and Dawn Chmielewski in Los Angeles; editing by Kenneth Li and Nick Zieminski)
NBC Sports
5 days ago
- Business
- NBC Sports
NFL, ESPN agree to multi-year extension of draft rights
ESPN announced that they have agreed to acquire NFL Network and other media assets in exchange for the NFL taking a 10 percent equity stake in ESPN and the network made another announcement about their relationship with the NFL on Tuesday. The two sides have agreed to a multi-year extension of ESPN's rights to broadcast the draft. The network has televised the draft since 1980 and they will stream it on on Disney Plus and Hulu for the first time in 2026. As in recent years, the first two nights of the draft will feature separate telecasts on ESPN and ABC. ABC will simulcast ESPN's Saturday coverage and the agreement leaves space for ESPN to add alternate telecasts on streaming platforms. The release makes no mention of what will happen regarding NFL Network's telecast of the draft in 2026 and beyond. That's one of the questions left to be answered in the wake of the larger ESPN-NFL deal that was announced on Tuesday.
