Fostering stronger ties with the most powerful U.S.
sports league owner, ESPN is acquiring the NFL Network, a linear cable TV network, and other NFL media assets in exchange for a significant 10% stake in ESPN for the football league.
Media
analysts estimate the value of NFL’s stake in ESPN to be between $2.5 billion and $3 billion.
Currently, ESPN is 80% owned by ABC, Inc. (an indirect subsidiary of The Walt Disney
Company) and 20% by media company Hearst. Overall ESPN valuation is projected to be between $25 billion and $30 billion.
ESPN will now own and operate the NFL Network -- its linear TV and
digital media rights -- and will incorporate the programming into its soon-to-launch premium streaming platform, ESPN -- its much anticipated direct to consumer service.
Additionally,
ESPN will own NFL’s other linear TV network -- NFL RedZone Channel, which provides near real-time video clips of every touchdown scoring of every NFL game. The term “red zone” refers
to near end zone action -- within the 20-yard line -- where touchdowns and other high-level action can occur.
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ESPN will also own “NFL Fantasy Football” -- a sports-wagering
platform -- that will merge with “ESPN Fantasy Football.” Additionally, NFL will license to ESPN certain NFL content and other intellectual property to be used by NFL Network and other
assets.
ESPN will get three additional in-season NFL games to air on the NFL Network. ESPN will adjust its schedule, which will include overlapping games with NFL Network, who will continue to
air seven games per season.
The NFL isn’t selling all its media business.
It will continue to own NFL Films and digital and video businesses -- NFL+ and NFL.com -- as
well as the NFL Podcast Network, the NFL FAST Channel and the official sites for the league’s 32 clubs.
While ESPN will own “broad rights” to the RedZone brand, the NFL
will continue to own, operate, and produce NFL RedZone, and own and distribute NFL RedZone digitally.
The agreement is subject to approval by NFL team owners.