NFL Sells RedZone And Other Media Assets To Disney For Stake In ESPN: Report

The NFL and Disney’s (DIS) ESPN have reportedly arrived at an agreement that places many of the league’s top media holdings with the sports network in exchange for stake in ESPN that is potentially worth billions.

According to a report by The Atlantic, sources said the official announcement is expected next week. Disney is also expected to report its latest earnings on Wednesday. NFL may receive up to 10% equity, it said.

The report noted that the agreement may be subject to a term length of the agreement, but it is not yet known how that will be prescribed. It added that the NFL has been looking to unload many of its Media properties for years. 

ESPN is expected to have access to RedZone, NFL Network, seven more regular-season games, the NFL’s fantasy football business, potential to integrate special features, and potentially more assets. It added that the ESPN-NFL deal will require regulatory approval, which could take nine months to a year. If it goes into effect next, ESPN will get to broadcast its first Super Bowl, which will also be shown on Disney’s ABC.

The report also said that the discussion has been in progress for four years, and the final agreement is fairly “complicated.” It also noted that the agreement comes at around the same time as when ESPN’s direct-to-consumer (DTC) service is expected to launch within the next couple of weeks. 

Network executives have been in discussion with numerous potential partners from major leagues since ESPN began planning for this new service, the report said. 

ESPN is expected to have access to RedZone, NFL Network, seven more regular-season games, the NFL’s fantasy football business, potential to integrate special features, and potentially more assets.

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