A megadeal in the works for years between ESPN and the NFL became official Wednesday, strengthening the bond between two of the biggest entertainment brands in the country. The deal is estimated to be worth around $3 billion.
What are the main assets in the deal?
As SAN reported Monday, the NFL, one of the most successful sports leagues in the world, will acquire close to 10% of Disney-owned ESPN. In return, ESPN will take full ownership of the NFL Network and the NFL Red Zone channel, among other assets.
The two entities have been in talks for more than four years. ESPN will also air three of the NFL Network’s seven games on its platforms as part of the deal, said CEO Bob Iger during the Walt Disney Company’s Wednesday earnings call.
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“Basically, there will be 28 windows for NFL games, which is an increase over what we’ve had before,” Iger said. “Previously, there were 22. That obviously is of major significance in terms of both ESPN but also in terms of the audience. We’re basically giving NFL fans more opportunities to watch NFL games than they’ve ever had before.”
Another aspect of the deal involves fantasy football. NFL Fantasy Football will merge with ESPN Fantasy Football, creating the official fantasy game of the NFL.
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The NFL’s current media rights agreement is valued at approximately $110 billion over 11 years. It includes major networks like CBS, NBC and ESPN/ABC, with Amazon streaming Thursday Night Football and Netflix streaming Christmas Day games.
How does the deal help ESPN?
The deal comes two weeks before ESPN is set to launch its new streaming service. As part of the earnings call, Disney announced an Aug. 21 launch date for the new platform, coinciding with the launch of a new streaming service from Fox, called “Fox One.” ESPN’s service will be available for $29.99 per month, and the addition of more NFL content will likely increase interest in the service. Disney CFO Hugh Johnston said Wednesday they hope to make it easy for fans.
“The goal with ESPN (streaming) is to basically reach sports fans as they choose to be reached,” Johnston said. “So, if they choose to be reached through the ESPN app, great. If they choose to be reached through the Disney+ Hulu app, great. If they choose to be reached through cable, great. Our goal is to engage them where they are.
What are some concerns with the deal?
“There’s not going to be immediate radical changes to this show or to anything NFL media, but changes will come and they will evolve,” Brandt said. “The unknown is exactly what those changes are going to be. But the excitement is what they could be.”
Fans have voiced their displeasure with the deal online, believing the NFL Network and RedZone channel will change with the addition of ESPN talent and the production style the “Worldwide Leader in Sports” is known for. Good Morning Football host Kyle Brandt addressed that idea on the show on Wednesday.
Another concern for fans and other NFL media partners centers on whether ESPN will continue to cover the league in an unbiased fashion on controversial topics like players diagnosed with CTE or “deflategate,” with the league now a part-owner of their news operation.
The NFL has been expert at “protecting the shield” from scandal over the years. That job may be easier with 10% of ESPN now in their portfolio. Iger told reporters Wednesday, “Nothing in this deal in any way changes ESPN’s approach when it comes to journalism.”
The massive deal still needs regulatory approval, which is not a formality given the power of both companies. Many analysts see a Fall 2026 close for the deal as a best-case scenario. NFL owners must also vote to approve the deal.
