By Mallory Mattingly
A recent deal with ESPN granted the NFL a 10% equity stake in sports network. Will it change how you watch sports?
On Aug. 5, ESPN announced a deal to acquire the NFL Network and other NFL owned and controlled assets including the NFL’s linear RedZone and NFL Fantasy. In return, the NFL got a 10% equity stake in ESPN.
“In addition to the sale of NFL Network, the NFL and ESPN are also entering into a second non-binding agreement, under which the NFL will license to ESPN certain NFL content and other intellectual property to be used by NFL Network and other assets,” The Walt Disney Company shared in a press release.
The deal promises to increase consumer choice, give fans greater accessibility and expand programming and content offerings through ESPN.
Related: How ESPN Became Disney’s Latest Problem
“Since its launch in 2003, NFL Network has provided millions of fans unprecedented access to the sport they love. Whether it was debuting Thursday Night Football, televising the Combine, or telling incredible football stories through original shows and breaking news, NFL Network has delivered,” said NFL Comissioner Roger Goodell. “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 Wall Street Journal estimates that ESPN’s total value is “$25 billion to 30 billion. With a 10% equity stake now, the NFL — in exchange for giving up assets such as the REDZONE name, fantasy football assets and its studios at SoFi Stadium — now has a $2.5 billion to $3 billion investment in the network.”
“That can, and should, buy a lot of influence,” Andrew Brandt with Sports Illustrated speculated.
According to Awful Announcing, the influence the NFL has on ESPN was on full display this week.
Ian Rapoport, “the NFL Network’s top insider,” guest-hosted THE PAT MCAFEE SHOW on Monday, ESPN’s biggest NFL-adjacent show. Meanwhile, Rich Eisen, who has “deep league connections,” returned to ESPN to anchor SportsCenter on Monday night, “which is precisely what ESPN needs as it leans harder into NFL content.”
“And,” Awful Announcing added, “ESPN officially announced it won’t air Spike Lee’s four-year Colin Kaepernick documentary project, citing ‘creative differences.'”
The NFL’s stake in ESPN likely means other changes are on the way. Brandt suggested that when “acquisitions such as these [occur], there is duplication of talent.”
“I would think we will eventually see some dismissals of on-air talent, as well as producers, directors, audio and video staff, etc,” he said. “The NFL has made regular cuts to its media properties before this merging of talent with ESPN, and it will certainly do so here as well.”
Sports fans will have to wait to see what other changes are ahead for the NFL and ESPN.
Read Next: New NFL Broadcast Deals Signal The Eventual End of Traditional Television
Questions or comments? Please write to us here.
– Content: +1Share:
– Content: +2