Landmark deal: ESPN expands with NFL network acquisition, acquires 10% stake

ESPN, a subsidiary of The Walt Disney Company, and the National Football League (NFL) announced on Tuesday (August 5) a non-binding transaction under which ESPN will buy NFL Network and certain other media properties owned and controlled by the NFL – NFL's linear RedZone Channel, and NFL Fantasy – in exchange for a 10% ownership stake in ESPN.

Along with the sale of NFL Network, the NFL and ESPN are also agreeing to a second non-binding deal, under which the NFL will license to ESPN some NFL content and other intellectual property to be utilized by NFL Network and other assets. These deals involving America's most widely watched sporting league and the world's foremost pioneer in sports media reflect the intention to establish a new benchmark for how professional football is presented, perceived and celebrated by fans.

“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,” said Robert A. Iger, Chief Executive Officer of The Walt Disney Company. “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,” said NFL Commissioner Roger Goodell. “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.”

“This is an exciting day for sports fans,” said Jimmy Pitaro, Chairman of ESPN. “By combining these NFL media assets with ESPN’s reach and innovation, we’re creating a premier destination for football fans. 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.”