Aug. 6 (UPI) — ESPN announced Wednesday that it has made a non-binding agreement with the National Football League to acquire the NFL Network and some of its other media assets.
The announcement said ESPN, owned by the Walt Disney Company, bought the assets for a 10% equity stake in ESPN.
Other assets included in the purchase are NFL’s RedZone Channel and NFL Fantasy, which are owned and controlled by the league.
The NFL also will continue to own and operate some of its media businesses, including NFL Films and NFL.com.
The two companies also are entering into a second non-binding agreement, under which the NFL will license to ESPN certain NFL content and other intellectual property to be used by NFL Network and other assets.
“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 Bob Iger, CEO of Disney. “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.”
NFL Commissioner Roger Goodell agreed.
“Since its launch in 2003, NFL Network has provided millions of fans unprecedented access to the sport they love. 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.”
ESPN chair Jimmy Pitaro said he’s excited about the acquisition.
“This is an exciting day for sports fans. 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.”
ESPN is 80% owned by ABC, an indirect subsidiary of The Walt Disney Company, and 20% by Hearst.
The agreements are subject to approval from NFL owners and government regulators.
On Tuesday, Fox announced the streaming service Fox One will go live Aug. 21 ahead of NFL season. The streaming service will broadcast some NFL games.