The NFL and ESPN have been in negotiations about a massive media deal for several years, and the two sides have reportedly come to an agreement.
According to Andrew Marchand of The Athletic, the NFL and ESPN have reached a deal for ESPN to acquire NFL Media, which includes the popular NFL RedZone channel. In exchange, the NFL will receive an equity stake in ESPN that could potentially be worth billions of dollars.
The agreement, which is expected to be announced next week, comes just as ESPN is set to launch its new straight-to-consumer service, which will simply be called “ESPN.” The streaming service is expected to cost $29.99 per month and will give users the ability to watch all of ESPN’s programming.
A deal between the NFL and ESPN will require regulatory approval, which Marchand notes could take up to a year. If and when the agreement becomes official, ESPN is expected to take over NFL Network, the NFL RedZone channel, seven additional NFL regular-season games and the NFL’s fantasy football business.
Marchand describes the deal as “complicated” and speculates that the NFL may receive up to a 10% stake in ESPN.
The NFL has wanted to unload NFL Media for some time, as it has not been a financial success for the league. NFL Network launched in 2003 and has had some popular studio shows, but it never became a rival to ESPN as the NFL had hoped it would.
One of the big questions to emerge from the deal between the NFL and ESPN will be what happens to one of the NFL’s top reporters, though he could simply remain in his current position and have a different company cutting his checks.
