Let’s Break Down the Big ESPN-NFL Deal
The big news coming out of The Walt Disney Company’s Q3 earnings call yesterday was ESPN’s blockbuster deal with the NFL, which will see ESPN add more football content to its cache in exchange for 10% equity in the network.
According to Bob Iger, Disney had been discussing some kind of agreement with the NFL and its commissioner, Roger Goodell. Finally, the time was right to strike a deal.
In the aftermath of today’s earnings call, I have seen considerable confusion surrounding the new partnership. So, let’s break the deal down and see what exactly ESPN got.
Breaking Down the Deal
On face value, the deal between ESPN and the NFL sounds relatively simple. Essentially, Disney has acquired the NFL’s media holdings in exchange for a 10% equity stake in ESPN. Diving into the details, however, the deal becomes increasingly complicated.
Photo: ESPN
Let’s start with the networks ESPN is getting.
The NFL Network
As the Worldwide Leader in Sports prepares to launch its new streaming service this fall, ESPN has added two major networks to its portfolio.
Photo: TamirMoore.com
The first is NFL Network, which ESPN now owns. The agreement covers both the linear and digital versions of the NFL’s flagship station, making this section of the deal fairly straightforward.
NFL Redzone
Where things get more complicated, however, is the second network ESPN has acquired — NFL RedZone.
NFL
Unlike the NFL Network, Disney did not purchase the RedZone channel. Instead, under the new agreement, ESPN now owns the RedZone brand and has the distribution rights to the NFL RedZone Channel.
The new deal means that ESPN can integrate RedZone into its new streaming app, bundle the network with other stations, and include the station in its larger carrier deals.
NFL
The big caveat here is that the NFL will still own, operate, and produce NFL RedZone. It will also retain the rights to digital distribution. This section of the ESPN-NFL agreement was more of a rights deal than an outright sale, though ESPN did pick up the IP.
ESPN Adds Three More NFL Games
In addition to the two primary networks, the new ESPN-NFL deal also gives Disney three more NFL games per season.
Photo: ESPN
Now, the wording in this section of the agreement is tricky.
For those who may not know, the NFL Network previously aired seven NFL regular season games a season. As part of the new agreement, Disney will pick up the rights to three of those games.
Under the new terms, ESPN will also move four of its previously owned NFL games to the NFL Network, combining them with the three new games they picked up. When the dust has settled, the NFL Network will continue to air seven games a year.
Kansas City Chiefs quarterback Patrick Mahomes runs onto the field during team introductions prior to an NFL Divisional Playoff football game against the Jacksonville Jaguars Saturday, Jan. 21, 2023, in Kansas City, Mo. (AP Photo/Ed Zurga)
Essentially, ESPN picked up three new games and is moving things around to ensure that seven total games are still broadcast on the NFL Network.
Streaming Rights and Preseason Games
As previously noted, the new NFL-ESPN deal revolves around the upcoming ESPN streaming app, which will launch on August 21.
ESPN
With that in mind, the two entities agreed on a second media rights deal that gives ESPN access to more NFL content.
As part of the second deal, ESPN’s streaming app will be able to stream out-of-market NFL preseason games during the 2025 and 2026 seasons.
Additionally, ESPN will be able to sell and bundle NFL+ Premium with the new streaming app, giving fans the ability to watch both NFL Network and NFL RedZone.
NFL
Remember earlier when I said that the NFL was retaining the digital rights to RedZone? This is where that clause comes in.
Finally, under the new agreement, the groundwork has been laid for fans to stream Monday Night Football through the ESPN app and watch the game on demand. There is also the potential for select NFL simulcasts to air on Disney+.
Photo: ESPN
This portion of the agreement expands on the longstanding partnership between ESPN and the NFL and gives Disney more flexibility regarding streaming rights.
The Timeline
It is important to note that the new partnership between ESPN and the NFL unfolded across two separate deals. This is especially important when it comes to the timeline.
Photo: NFL
The assets acquired by ESPN in the second media deal, including the preseason games, Monday Night Football streaming rights, and potential simulcasts, will be in place for the 2025-2026 NFL Season.
The sale of the NFL Network and RedZone rights, however, is unlikely to be finalized until the 2026-2027 season.
Walt Disney Company
Not only do the NFL owners still need to approve the deal, but the sale will also face regulatory scrutiny.
Clean Up
Before we turn the page on the latest NFL-ESPN agreement, it is essential to note that there are other assets and rights involved. For example, ESPN will get more highlights for its studio programs, we will see a merger of ESPN Fantasy Football with NFL Fantasy Football, and there will be a new multiview feature in the ESPN app.
ESPN
The bottom line, however, is that ESPN is investing in football and the NFL is investing in ESPN. That is win-win for both parties involved.
