ESPN and the NFL are in advanced negotiations that could result in the league acquiring a stake in ESPN, the Post reported.
As part of a potential deal, Disney-owned ESPN would take control of NFL Media, including NFL Network, and the league would receive an equity stake in ESPN. With ESPN planning to go direct-to-consumer by 2025, partnering with the most powerful sports leagues will help strengthen its long-term viability.
The idea of a partnership between ESPN and the NFL has been mentioned before, but talks between Disney-owned ESPN and the NFL are well advanced, with officials briefing owners and the players' union on the talks. said.
Owners and players must engage in capital agreements because of collective bargaining agreements between the two parties that require revenue sharing. It is unclear how ESPN's stock will be accounted for under the CBA.
It could still be several months before a deal is reached. ESPN and the NFL declined to comment.
The NFL has been trying to reduce the load on its network for years. The NFL unsuccessfully sought a buyer in recent negotiations that resulted in more than $110 billion in deals with ESPN, Amazon, CBS, Fox, NBC and YouTube.
NFL Media consists of NFL Network, NFL.com, Red Zone, NFL Films and NFL+. ESPN has extensive coverage of the league, so if the two sides reach an agreement, there could be synergy. Disney/ESPN may be able to secure better transportation arrangements for NFL Network.
ESPN is targeting 2025 as the year it will most likely be available directly to consumers. There is still a possibility that the date will be moved to the end of this year.
At that time, the company plans to offer all programming without a cable subscription. Subscribers can pay for service directly through ESPN's app or select ESPN channels through their cable or satellite provider.
ESPN currently offers ESPN+ as a separate add-on service, but it offers more specialized programming, including one exclusive NFL game.
As ESPN looks toward direct-to-consumer, it will ideally work with league partners and one of the top digital players, including but not limited to Apple, Amazon, and Verizon, to leverage its content on the best distribution channels. I hope. CNBC reported in June that ESPN had held talks with the NFL, NBA and MLB.
ESPN currently pays the NFL approximately $2.6 billion a year in rights fees, including 25 games, highlighted by its weekly Monday night prime-time schedule.
