The NFL is one of the most lucrative properties in the entertainment space, regularly garnering millions of views for a single game.
In a deal reported by The New York Times, the Disney-owned sports network would relinquish equity potentially worth billions to the NFL in exchange for the NFL Network and RedZone (the channel that allows you to watch all live games simultaneously).
And while the two properties are the meat of the deal, the side dishes are some pretty substantial content for ESPN to sink its teeth into.
What ESPN (and Disney) get
When all is said in done, NYT is reporting that ESPN will get NFL Network, RedZone, seven additional regular season game broadcasts (a fairly sizable number when you consider how short the NFL season is relative to other sports), the NFL's fantasy football business, special feature integration (like bettering) and possibly other assets.
That's a huge chunk of the NFL's in-house content. However, it also shifts the workload of managing all that content to ESPN, allowing the NFL to focus on football.
What the NFL gets
The NFL gets money.
Well, not cash in this case, but equity in ESPN. According to a previous CNBC report, the NFL could get as much as 10% ownership of ESPN.
With significant developments on the horizon for ESPN, including the reported launch of its standalone streaming service and app, this is an ideal time for a business entity like the NFL to take ownership of the largest sports broadcaster on the market.
What does this deal mean for you?
Big companies are exchanging billions of dollars. It happens all the time. What does it mean for you, the consumer who just wants to watch their favorite NFL teams every week?
That's where things become a little murkier. We've heard that ESPN intends to launch its standalone streaming service and app for around $30 per month. Rumors have also said it'll launch over the next couple of weeks, which is conveniently before the start of the NFL regular season.
If you're a cable holdout still paying for traditional cable services, you'll have access to the new ESPN App and all the goodies that come with it. That means nothing should change for you regardless of where the NFL Network and RedZone land.
For everyone else, this deal might force football fans to join ESPN, as it could be the only way to watch several football games throughout the season and the beloved RedZone, which allows fans to watch all the games during those peak Sunday times.
That is, of course, exactly why Disney is willing to part with up to 10% of its ESPN equity — your viewing attention (and $30 per month) is far more valuable to Disney.
The big question is when this will happen. Will the deal be finalized and implemented before the start of this NFL season? Will it happen at some point during the season, potentially confusing fans, or will it have to wait until next season? We should find out in the coming weeks when Disney, ESPN and the NFL end the speculation.
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