The NFL is set to acquire a 10% stake in ESPN as part of a sweeping partnership with Disney, giving the league significant influence over the sports network while handing ESPN control of key NFL media assets, including the NFL Network. While the value of the transaction remains undisclosed, analysts peg ESPN's worth between $25 billion and $30 billion, suggesting the NFL's share could run up to $3 billion, reports the Wall Street Journal. The AP notes the deal is a nonbinding agreement.
The move deepens the evolving relationship between sports leagues and media outlets, shifting from simple broadcast rights to actual ownership stakes. The NFL's reach will now extend into CBS as well, thanks to its content partnership with Skydance Media, which is on the verge of acquiring network owner Paramount Global. "The NFL seems to have no ceiling on growth and value," sports marketing analyst Bob Dorfman tells CNBC. "With all the content beyond the actual games, it's become a year-round sport. And it's only going to grow internationally."
For ESPN, absorbing the NFL Network and distributing the NFL's RedZone channel to pay-TV providers boosts its content library, a timely move as it prepares to launch a direct-to-consumer streaming service this fall. The deal drops Disney's stake in ESPN to 72% from 80%, with minority partner Hearst's share slipping to 18% from 20%.
story continues below
NFL Commissioner Roger Goodell sees the development as a natural culmination of more than 10 years of discussions, while New England Patriots owner Robert Kraft, who also heads the NFL's media panel, sees the equity arrangement as a long-term commitment. New England Patriots owner Robert Kraft highlighted the deal's potential to grow the league's salary cap, possibly aiding negotiations with the players union.
,
uBlock 
,
and
Ghostery 
)
