NFL, ESPN reach nonbinding agreement for sale of NFL Network, other media assets

The NFL announced Tuesday night that it has entered into a nonbinding agreement with ESPN. Under the terms, ESPN will acquire NFL Network, NFL Fantasy and the rights to distribute the RedZone channel to cable and satellite operators and the league will get a 10% equity stake in ESPN.

The league and ESPN still have to negotiate a final agreement and get approval from NFL owners. The agreement will also have to undergo regulatory approvals.

Along with the sale of NFL Network, the NFL and ESPN will have a second nonbinding agreement where the NFL will license to ESPN certain NFL content and other intellectual property that can be used by NFL Network and other assets that have been purchased.

“We have been talking about it in earnest for the last few years. But interestingly enough, we started talking about this over a decade ago but nothing really ended up happening. And we got back at it when I came back to Disney after my retirement,” Disney CEO Bob Iger said in a call with the AP.

ESPN is expected to launch its direct-to-consumer service before the end of September. The service would give cord-cutters access to all ESPN programs and networks for $29.99 per month. The addition of more NFL programming increases the value.

Many viewers will receive the service for free as part of their subscription to cable, satellite and most streaming services.

NFL Network — which has nearly 50 million subscribers — would be owned and operated by ESPN and would be included in ESPN’s direct-to-consumer product.

The NFL RedZone channel would be distributed by ESPN to cable and satellite operators. However, the NFL will continue to own, operate and produce the channel as well as retain the rights to distribute the channel digitally. ESPN would also get rights to the RedZone brand, meaning RedZone channels for college football and basketball or other sports could be coming in the future.

NFL Fantasy Football would merge with ESPN Fantasy Football, giving ESPN the official fantasy football game of the league.

NFL Network will still air seven games per season. Four of ESPN’s games, including some that are in overlapping windows on Monday nights, would move to NFL Network. ESPN will license three additional games that will be carried on NFL Network.


(AP Photo Kamil Krzaczynski)