ESPN, the Disney-owned international sports broadcaster, has finalized its acquisition of the NFL’s media assets after the transaction was approved by government regulators.
The NFL and ESPN officially announced the closing of the deal on Saturday night after the Justice Department and other non-US antitrust authorities completed their reviews.
Under the deal, the broadcaster has acquired NFL Network, the 24/7 channel owned by the league, and NFL Redzone, the channel featuring live-action cut-ins as teams approach the opposition’s end zone.
ESPN will also receive seven more regular-season games and the NFL’s fantasy football business, among other NFL Media assets.
In return, the NFL will reportedly secure as much as 10% of an equity stake in ESPN, potentially worth billions of dollars. With the sale, ESPN’s shareholding sees ABC Inc., an indirect subsidiary of The Walt Disney Company, own 72%, while Hearst holds 18%.
In a joint statement, ESPN and the NFL said: “With the closing, we will begin integrating NFL employees into ESPN in the months ahead. As we look to the future, NFL fans can look forward to expanded NFL programming, greater access to NFL Network, innovative fantasy experiences, and unparalleled coverage of America's most popular sport."
NFL Network, which has nearly 50 million subscribers, will be included in ESPN's direct-to-consumer (DTC) product, which launched in August, shortly after the deal was first announced.
The NFL RedZone channel will be distributed by ESPN to cable and satellite operators. However, the NFL will continue to own, operate, and produce the channel and retain the rights to distribute the channel digitally.
ESPN would also get rights to the RedZone brand, meaning RedZone channels for college football, basketball, or other sports could be rolled out.
NFL Fantasy Football will merge with the ESPN Fantasy Football game, giving ESPN the official fantasy football game of the league.
NFL Network will still air seven games per season. Four of ESPN's games, including some that are in overlapping windows on Monday nights, will move to NFL Network. ESPN will license three additional games that will be carried on NFL Network.
The NFL has taken back the rights to four international games, which it is expected to put up for bid. The league has discussed each of its 32 teams playing at least one international game per season if the schedule expands to 18 regular-season games.
The league will continue to own and operate NFL Films, NFL+, NFL.com, the official websites of the 32 teams, the NFL Podcast Network, and the NFL FAST Channel (a free ad-supported streaming channel).
The deal between the NFL and ESPN was first mooted in 2024, when discussions advanced enough for the league to inform the NFL Players Association and team owners.
Both owners and players had to sign off on any deal due to the NFL’s collective bargaining agreement, which includes revenue sharing.
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 DTC streaming services, and Iger previously stated that any investment would be used to help take the network DTC by this year.
Disney and ESPN hold domestic rights to two NFL packages, including Monday Night Football (MNF), which airs on ESPN and sister channel ABC, and two Super Bowls. Its MNF deal encompasses 25 games worth around $2.6 billion per year.
