The deal
American football’s NFL has struck a wide-ranging deal with media giant Disney, which will see it take a 10% stake in international sports broadcaster ESPN in return for control of the league’s key media assets.
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While neither party has disclosed the value of the equity-for-assets deal, analysts have placed ESPN’s valuation at between $25 billion and $30 billion, making the NFL’s stake worth around $2.5 billion to $3 billion.
The deal has two parts – one aspect will see Disney-owned ESPN own and operate NFL Network, the 24/7 channel run by the league, and NFL Fantasy Football, which will merge with ESPN’s fantasy football product.
The broadcaster will also distribute NFL Redzone, the channel featuring live-action cut-ins as teams approach the opposition’s end zone, to pay-TV operators, with ownership and digital distribution rights remaining with the NFL.
The second part will see the NFL grant ESPN rights to air three additional NFL games on NFL Network, which already carries seven games. Another four games previously aired by ESPN will also be shifted to NFL Network to boost its programming.
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By GlobalDataDisney and ESPN currently hold domestic rights to two NFL packages, including Monday Night Football (MNF), which airs on ESPN and sister channel ABC, and two Super Bowls in 2027 and 2031. Its MNF deal encompasses 25 games worth around $2.6 billion per year.
With the additional games from the new deal, the total number of games televised by ESPN will rise to 28.
Shortly after the announcement, ESPN confirmed it had extended its rights deal for the NFL Draft through 2030.
The agreements are non-binding and are subject to the parties’ negotiations and various approvals. Both owners and players will have to sign off on any deal due to the NFL’s collective bargaining agreement, which includes revenue sharing.
The process of securing federal approvals could push the official close of the deal to this time next year.
Why it matters
ESPN has been in discussions with the NFL for at least two years over potentially selling the league a stake in the company. ESPN is 80% owned by Disney and 20% by media company Hearst. The companies have not disclosed how the two equity-holders will dilute their stakes for the NFL's 10% ownership stake.
The assets being sold are part of NFL Media, the media business of the American football league. However, not included in the deal are several of the NFL’s digital properties, including NFL.com, the league’s 32 team-branded sites, and the NFL+ streaming service.
The talks came after Disney chief executive Bob Iger told the media in August 2023 that his company wanted to keep ESPN as an asset but would seek strategic partners to form a joint venture around the broadcaster or buy a stake in it.
The broadcaster has been challenged by increased cord-cutting by subscribers in favor of direct-to-consumer (DTC) streaming services, and Iger previously stated that any investment would be used to help take the network DTC by this year.
The entire deal is based on the impending launch of ESPN’s direct-to-consumer app that is due to launch on August 21, with the broadcaster rushing to acquire as much content as possible to lure subscribers to its unlimited plan for $29.99 per month.
The new service will allow subscribers to bypass cable or satellite providers to watch all ESPN programming through its networks – ESPN, ESPN2, ESPNU, SECN, ACCN, ESPN News, ESPN Deportes, ESPN on ABC, ESPN+, ESPN3, SECN+, and ACCNX.
Once the deal is completed, NFL Network will also be available on the app.
The ESPN DTC will launch with around 25 million subscribers due to current ESPN+ customers being migrated to the new platform automatically on a $11.99 per month plan, but will be given the option to switch to the ESPN unlimited tier.
The company is also launching a 12-month bundle offer to get access to ESPN, Disney+, and Hulu for the same price as the unlimited plan.
GlobalData senior media analyst Costanza Barrai commented: “The NFL Network deal marks the first big step in the company's new streaming strategy. This decision not only caters to the growing demand for personalized viewing experiences and options but also reinforces ESPN's leading position in the sports streaming arena, which is getting more crowded with platforms like Amazon Prime Video, Peacock, and Netflix making significant moves into live sports broadcasting.
“However, the deal rationale for Disney goes beyond growing its streaming segment. This arrangement aims to maintain traditional pay television distribution while increasing accessibility and flexibility for consumers and fostering innovation in sports programming. By consolidating NFL content under the ESPN brand, the company strengthens its negotiating power with cable and satellite providers, potentially driving higher affiliate fees and reinforcing Disney's overall value proposition to distributors and advertisers.
“As major changes to Disney's DTC segment roll out publicly, it will be interesting to see how the company will diversify content investment (which has slowed down for their entertainment services) to retain those subscribers entering through the 12-month bundle offer. The result of the operation will offer more insight into the impact of live sports licenses in the world of streaming and content bundling.”
The details
In a statement, Walt Disney Company chief executive Robert Iger hailed the deal as transformational, while ESPN chairman Jimmy Pitaro said, “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.”
The deal is set to turbocharge ESPN’s streaming ambitions, bringing additional games to the streaming platform once it closes.
However, concerns have already been raised about the potential favorable treatment ESPN may get in the future compared to other networks and streamers that air games, as well as the editorial independence of ESPN as a news outlet, given its new ownership.
However, Iger has moved to quell those questions, telling reporters during the company’s third quarter earnings call that the league’s relationships with its other media partners will “continue to flourish,” while adding that “nothing in this deal in any way changes ESPN’s approach when it comes to journalism.”
The timing of the deal and potential length of its federal approval puts it on course to be finalized during the 2026 season, just before ESPN covers its first Super Bowl in 2027.
The deal announcement came shortly before Disney published its financial report for the third quarter (Q3) of the 2025 financial year, with its sports segment performing well.
Overall, Disney generated $23.65 billion in revenue over the three months (April to June 2025), up 2% on the same quarter in 2024, with a loss of $50 million.
Quarterly sports segment revenue, however, dropped 5% year-on-year (YoY), though across the nine months of the current fiscal year, this far revenue (sitting at $13.7 billion) has remained flat when compared to the 2024 fiscal year.
The merger of Star India, responsible for $217 million in revenue in Q3 2024, with Reliance Industries and its subsequent removal from the revenue mix was the primary factor behind the 5% revenue drop, which came despite domestic and international units growing 1% to 2% over that time.
Despite this, operating profit at the sports segment grew significantly over the quarter, up 29% to surpass $1 billion, while nine-month YoY operating profit grew 33% to $1.97 billion.
