ESPN has finalized its acquisition of the NFL Network and various digital assets from the National Football League (NFL). The completion of this landmark deal was confirmed after government regulatory bodies, including the Justice Department and international antitrust authorities, approved the transaction.
The announcement comes after extensive reviews were conducted regarding the deal, with the formal closing declared on Saturday night. Through this acquisition, ESPN has acquired not only the NFL Network but also the NFL Fantasy platform and the rights to distribute the NFL RedZone channel to cable and satellite providers. In return, the NFL will receive a 10% equity stake in ESPN, marking a significant partnership between the two entities.
In a joint statement, both ESPN and the NFL indicated that with the closure of the deal, they will begin the process of integrating NFL employees into ESPN over the coming months. They expressed optimism for NFL fans, stating that this partnership would lead to "expanded NFL programming, greater access to NFL Network, innovative Fantasy experiences, and unparalleled coverage of America's most popular sport."
According to reports, changes to the NFL Network as a result of this deal are not expected until April, which will align with the integration of NFL Media employees into ESPN. The NFL Network currently boasts nearly 50 million subscribers and will be incorporated into ESPN's direct-to-consumer product, launched in August, following the initial announcement of this transaction.
As part of this agreement, the distribution of the NFL RedZone channel will be handled by ESPN for cable and satellite operators. However, it is important to note that the NFL retains ownership, operational responsibilities, and the digital distribution rights for the RedZone channel. Furthermore, ESPN has gained rights to the RedZone brand, opening the possibility for the creation of RedZone channels for college football, basketball, and potentially other sports in the future.
In terms of fantasy sports, the NFL Fantasy Football platform will merge with ESPN's existing Fantasy Football services, allowing ESPN to claim the title of the official fantasy football game for the league.
The operational structure of the NFL Network will remain, as it will still broadcast seven games per season. In a notable change, four of ESPN's games, scheduled for Monday nights and overlapping windows, will now be broadcast on the NFL Network, which will also acquire licensing rights for three additional games to be aired.
Meanwhile, the NFL has regained rights to four international games, with discussions around the potential bidding process for these games. The league is considering a plan for each of its 32 teams to participate in at least one international game per season if the regular season schedule is extended to 18 games.
Additionally, the NFL will continue to maintain full control over various digital content platforms, including NFL Films, NFL+, NFL.com, the official websites of all 32 teams, the NFL Podcast Network, and the NFL FAST Channel, which is a free ad-supported streaming option.
With this sale finalized, the ownership structure of ESPN stands at 72% held by ABC Inc., which is an indirect subsidiary of The Walt Disney Company, 18% by Hearst Corporation, and 10% by the NFL itself.
