ESPN to get NFL Network, rights to RedZone from NFL for equity stake
ESPN is acquiring the NFL Network and other National Football League media assets, including the linear rights to the league's popular RedZone channel, in a deal that will see the NFL get a 10% equity stake in the all-sports network, it was announced Tuesday night.
ESPN will also acquire the NFL's fantasy product and merge it into its existing platform, making ESPN Fantasy Football the official game of the NFL. In a separate deal, the NFL also agreed to license to ESPN other NFL content and intellectual property that will appear on the NFL Network and other assets.
The NFL Network will be owned and operated by ESPN, which will control the network's linear and digital rights. The NFL Network will be integrated into ESPN's upcoming direct-to-consumer streaming product, and it will continue to be available on traditional pay TV providers.
"By combining these NFL media assets with ESPN's reach and innovation, we're creating a premier destination for football fans," ESPN chairman Jimmy Pitaro said in a statement. "Together, ESPN and the NFL are redefining how fans engage with the game -- anytime, anywhere. This deal helps fuel ESPN's digital future, laying the foundation for an even more robust offering as we prepare to launch our new direct-to-consumer service."
ESPN platforms will also license three additional NFL games per season, giving it a total of 28. NFL Network will continue to show seven games per season, with some games shifting to NFL Network from ESPN's original schedule. Dates and games were not announced. All of the ESPN-owned games will air on linear and ESPN's direct-to-consumer platform.
According to a joint statement, ESPN will own broad rights to RedZone, including the trademark, and continue to distribute the channel to pay TV operators. The NFL will continue to own, operate and produce the RedZone channel and will keep the rights to distribute it digitally.
The league will also continue to own and operate some of its media businesses, including NFL Films and NFL.com.
"Today's announcement paves the way for the world's leading sports media brand and America's most popular sport to deliver an even more compelling experience for NFL fans, in a way that only ESPN and Disney can," Robert A. Iger, chief executive officer of The Walt Disney Company, said in a statement. "Commissioner Goodell and the NFL have built outstanding media assets, and these transactions will add to consumer choice, provide viewers with even greater convenience and quality, and expand the breadth and value proposition of Disney's streaming ecosystem."
"Since its launch in 2003, NFL Network has provided millions of fans unprecedented access to the sport they love," NFL commissioner Roger Goodell said in a statement. "Whether it was debuting Thursday Night Football, televising the Combine, or telling incredible football stories through original shows and breaking news, NFL Network has delivered. The Network's sale to ESPN will build on this remarkable legacy, providing more NFL football for more fans in new and innovative ways."
In May, ESPN announced its streaming service would launch in early fall with a $29.99 per month price point and will keep the linear network's name -- ESPN.
The direct-to-consumer service, launching on August 21, will allow users to get all seven of ESPN's domestic linear networks in addition to ESPN on ABC and several other streaming options.
ESPN is 80% owned by ABC, Inc., an indirect subsidiary of The Walt Disney Company, and 20% by Hearst.
The agreements between ESPN and the NFL are subject to approval from NFL owners and government regulators.