Disney may give up over 10% of ESPN ownership to own NFL Media
Disney may give up over 10% of ESPN ownership to own NFL Media
The terms of the deal are still under negotiation, but it appears close to crossing the finish line.
ESPN has been looking for a minority investor for years as it prepares to launch a new streaming platform that will make its content available outside the cable bundle for the first time. Now, it appears that the goal is almost across the finish line; the NFL could be preparing to take a substantial ownership stake in ESPN as part of a deal to send NFL Media properties to that channel.
Key Details:
- Is 10% too much?: Reports indicate the NFL could own up to 10% of ESPN in a deal.
- More football: ESPN would get control of NFL Network and NFL RedZone in the deal.
- Back and forth: The agreement is close to closing, but has been near to the finish line before.
According to CNBC, ESPN could cede up to 10% equity to the NFL in a deal. The final percentage could be less than that, but if the agreement comes to pass, it would satisfy a long-held desire by the channel to sell a stake of itself to a sports league; ESPN has discussed such deals with the NBA and MLB, in addition to the NFL.
The NFL’s discussions with ESPN have gone the furthest, and now the talks are part of ESPN’s negotiations to take control of NFL Media properties. According to CNBC, the current permutation of a combination would see ESPN take ownership of all of NFL Network and NFL RedZone, but not of NFL Media in totality. Instead, ESPN would acquire some of NFL Media’s assets, while doing partnership deals with others like NFL Films and NFL+.
Reports indicate the deal is very close, but that’s been the case before. In May 2024, it was reported that an agreement between the NFL and ESPN was “all but signed,” but nothing came of the discussions then. However, things appear to be on a different track this time.
For one thing, time is a consideration. I don’t doubt that Disney would love to make a deal before it launches its new ESPN streaming service this fall, since it could potentially roll out its new NFL content on the streamer at some point this current season. It could even allow for ESPN to take exclusive broadcast rights for the NFL’s international games, which have traditionally aired on NFL Network.
NFL owners have been informally notified to expect a vote on the deal with ESPN, so there’s a good chance that something will come of the negotiations this time. The deal has been close to the goal line before, but ESPN and the NFL may be about to punch it in once and for all.
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