ESPN and the NFL have reached a deal that may see the Disney-owned sports activities media firm purchase NFL Community and sure different media belongings owned and managed by the NFL in alternate for a ten % fairness stake in ESPN.
The settlement, which can see NFL media belongings together with NFL’s linear RedZone Channel, and NFL Fantasy, will permit the NFL to license to ESPN sure content material and different mental property for use by NFL Community and different belongings.
“At the moment’s announcement paves the best way for the world’s main sports activities media model and America’s hottest sport to ship an much more compelling expertise for NFL followers, in a method that solely ESPN and Disney can,” mentioned Bob Iger, Chief Government Officer of The Walt Disney Firm, promising the deal would “add to shopper alternative,” and “present viewers with even better comfort and high quality,” of ESPN’s protection of the league.
The deal comes as ESPN prepares to launch a direct-to-consumer streaming service later this 12 months and capitalize on the NFL’s explosive recognition.
The league has lengthy awarded profitable media rights agreements with main legacy media firms like Comcast, Disney and Fox, however has in recent times partnered with a rising variety of tech firms like Netflix and Amazon to broadcast video games.
ESPN’s push towards direct-to-consumer streaming comes amid broader considerations about elevated cord-cutting and an more and more robust marketplace for promoting on linear tv channels.