ESPN to Acquire NFL Network and RedZone in Exchange for 10% Equity Stake
ESPN will take control of NFL Network and RedZone, while the NFL secures a 10% stake in ESPN — a move that could change how fans watch football.
Sports fans could see changes in how they view NFL games and related content, thanks to a pending acquisition announced this week. ESPN plans to acquire the NFL Network, among other distribution rights, which could reshape the sports streaming era.
The move would consolidate much of the NFL’s media presence under one brand, giving ESPN control over how professional football is broadcast and streamed. The deal could impact cable providers, competing sports networks and even how fans choose their streaming subscriptions.
Though the ESPN NFL Network deal has been in talks for years, the NFL announced a nonbinding agreement on Tuesday as the deal moves forward.
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What will happen during the ESPN NFL Network acquisition
According to information shared with AP News, under the terms of the agreement, ESPN will receive the following:
- Ownership and operation of the NFL Network, which has almost 50 million subscribers
- Distribution of the NFL RedZone channel to ESPN’s cable and satellite operators (The NFL continues ownership and production of the channel)
- Merger of NFL Fantasy Football with ESPN Fantasy Football
The agreement means several changes to how you can view NFL games. The NFL Network will continue to air seven games each season, but four ESPN games would air on the NFL Network. ESPN will also license three more games to air on the NFL Network.
In exchange, the NFL will get a 10% equity stake in ESPN. That 10% equity deal is part of the NFL’s efforts to reach a target annual revenue of $25 billion by 2027.
How the ESPN NFL Network acquisition could change streaming
The acquisition marks a major shift in the sports streaming services industry. With the acquisition, Disney’s ESPN network will gain control of nearly all NFL content, positioning ESPN as the go-to for everything from Thursday Night Football to the RedZone channel.
Owning the distribution rights of NFL content also virtually eliminates ESPN’s competition; if football fans want to watch NFL content, they’ll find it on ESPN.
The move is a strategic one for ESPN, since it adds value to its new direct-to-consumer streaming service, which launches this September.
"We are providing everything ESPN has to offer directly to fans and all in one place," ESPN chairman Jimmy Pitaro said of the new service. "Our straightforward approach to name and pricing will help fans cut through the clutter, and provide them compelling options to access all our content within the enhanced ESPN App. It will be the ultimate sports destination for personalized experiences and features, and, on top of that, fans will be able to choose to bundle ESPN with the industry-leading Disney+ and Hulu streaming services."
The service, which will operate under the ESPN name, will give users access to:
- All seven of ESPN’s domestic networks
- ESPN on ABC
- 47,000 live events a year
- On-demand replays
- Studio shows
- Original programs
The ESPN App will also see upgrades, such as enhanced betting features and statistical analysis.
An annual subscription to the ESPN streaming service will cost $299 per year. There is also a select plan, including ESPN+ content, for $11.99 per month or $119 per year.
Users can also save with an introductory offer for a bundle of ESPN, Disney+, and Hulu for $29.99 per month for the first year.
When will the ESPN NFL Network acquisition take place?
Viewers won’t see any immediate changes from the ESPN NFL Network purchase. Though the NFL Network sale is progressing, the final agreement still needs to be negotiated, and NFL owners must approve of the terms. Then, the agreement must receive regulatory approval before the sale can take place, so it’s unlikely that you’ll see changes until next year.
In the meantime, ESPN will launch its new streaming service in September. The plan’s introductory offer may be a good way to test it out, especially if you’re an NFL fan and want to prepare for the upcoming changes that will come to viewing the games, NFL RedZone and NFL Fantasy Football.
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