NBA Could Still Nab a Piece of ESPN, Despite Channel’s Talks with NFL
NBA Could Still Nab a Piece of ESPN, Despite Channel’s Talks with NFL
A new report indicates the Association is very much in play to buy a minority ownership stake in ESPN as it negotiates its next broadcast deal.
The winds of change are blowing at ESPN. Its efforts to create a version of its channels available to streaming subscribers and unencumbered by the need for a cable subscription by 2025 have been well-documented, and has led to a search for investors in the sports network. A new report from Front Office Sports indicates that while talks with the NFL about an investment are going forward, the NBA is not out of the running to purchase a minority stake in ESPN.
- ESPN has engaged with sports leagues, tech companies and mobile providers about a potential investment.
- Earlier this week, it was reported the network was deep in talks with the NFL about an ownership stake.
- Previous reports have floated the possibility of ESPN taking over NBA League Pass if the two sides do make a deal.
Where Does ESPN Stand Currently?
ESPN is far from the distressed asset many on Wall Street thought when Disney CEO Bob Iger said he was willing to sell the network, along with its other linear channels last summer. That was more of a possibility if ESPN could not find a strategic partner for investment, as Disney wanted help in creating a streaming version of the channels.
However, according to the Front Office Sports report, not finding a partner doesn’t seem to be a problem for the Mouse House. The NBA is still engaged with ESPN about purchasing a minority stake in the channel, which would seemingly tie it to the league inexorably for the foreseeable future. ESPN is also still negotiating with the NBA regarding the league’s next broadcast rights deal; current agreements with ESPN and Warner Bros. Discovery expire after the 2024-25 season.
Reports from earlier this week indicate that ESPN is deep in talks with the NFL about selling a minority ownership stake to that league as well. It’s possible that Disney is interested in selling multiple portions of the channel, so an investment by one sports league or tech company does not necessarily preclude ESPN from teaming with others.
If the NBA does agree to buy a share of ESPN, it could mean the new ESPN streaming service will fold NBA League Pass into its inventory. A report from October indicated the league and ESPN had discussed that specific arrangement as part of a potential deal, and if it did acquire those rights it would carry out-of-market games from both the NBA and NHL.
Who Else is ESPN Talking To?
Having an investment ally in the form of a sports league like the NBA or NFL is a no-brainer for ESPN. Any league it partnered with would obviously want to preserve its best events for broadcast on the channel, and though it probably wouldn’t lead to that league putting all of its games on ESPN, it would ensure the network got first dibs on the choicest matchups.
FOS indicates there are plenty of parties interested in teaming with Disney on an ESPN investment, and not all of them are sports leagues. Previously, it was reported that tech companies like Apple and Google, the e-commerce giant Amazon, and even mobile providers like Verizon had engaged with Disney about investing as well. Disney is interested in one of these types of partnerships because it will help boost distribution for its new ESPN streamer.
Private equity firms and even sports betting companies have also contacted Disney about investing, so the company plainly has generated broad interest in its plan to bring partners to ESPN. FOS indicates that Iger and the rest of Disney’s brass will make a final say on who will be bringing their money — and potentially an even bigger inventory of live sporting events — to ESPN and its upcoming streaming service.
ESPN Select
ESPN Select is a streaming service that replaced ESPN+ and provides access to live NHL, MLB, and MLS games, PGA Tour Golf, international sports events, ESPN original programming, and a complete archive of “30 for 30.” Find out our review of the service and how to start streaming ESPN Select.