Since the US Football Association announced that it has been looking to sell NFL and other media assets, ESPN was seen as one of the candidates to conclude a deal.
After nearly five years, a framework is finally in place.
The US Football Association announced on Tuesday night that it had concluded an unremitting agreement with ESPN. Under the conditions, ESPN will get NFL, NFL Fantasy and Redzone Distribution Rights on Cable and Satellite Workmanships and the league will receive a 10 percent share of shares in ESPN.
The league and ESPN still negotiate a final agreement and obtain approval from the US Football Association owners. The agreement will also have to submit to organizational approvals.
“Sometimes the great things sometimes take a long time to reach the point where it is true,” said Roger Godll.
Along with the sale of NFL, NFL and ESPN will have a second undisputed agreement as the US Football Association will license a specific NFL content and other intellectual property that can be used by NFL and other assets that have been purchased.
“We have talked about it seriously over the past few years, but it’s interesting to talk about this for more than a decade, but nothing really ended up. We returned this when I returned to Disney after my retirement,” said Bob Egger, CEO of Disney Company in a call with AP.
What ESPN gets
ESPN is expected to launch its direct service to the consumer before the end of September. The service will provide access to all ESPN programs and networks for $ 29.99 per month. Adding more American Football Association programming increases value.
Many viewers will receive the service free of charge as part of their subscription to cables and satellites and most broadcast services.
“When I returned to Disney and mainly evaluated the future of ESPN, it became clear that ESPN was on the launch of a larger, more powerful, more powerful, or direct consumer product, not only for ESPN, but for the sports fans,” Egger said. It is clear that when you start thinking about high -quality sports content, your eyes are immediately heading towards the American Football Association because there is nothing more valuable and more popular than that.
NFL Redzone will be distributed by ESPN to the cable and satellite operators. However, the US Football Association will continue to own, operate and produce the channel, as well as keep the channel’s distribution rights digitally. ESPN will also get the rights of the Redzone brand, which means that the Redzone University Football channels, basketball or other sports may come in the future.
Fantasy NFL football will merge with Espn Fantasy Football, giving ESPN the official fictional football game in the league.
NFL Network will continue to broadcast seven games in the season. It will move four ESPN games, including some in overlapping windows on Monday nights, to NFL. ESPN will license three additional games to be implemented on the NFL network.
What the American Football Association receives (and keeps)
The league gets a 10 percent share of the stock in ESPN. Aidan O’Connor, First Vice President of Prosek Partners for Marketing, estimates that the value of this will be $ 2.2 billion to $ 2.5 billion.
ESPN currently owns 80 percent of ABC Inc. As an indirect subsidiary of Walt Disney. 20 percent is owned by Hurst. There is no word yet about whether the 10 percent share of the American Football Association will all come from ABC or whether it will be 5 percent for each of them from ABC and Hears.
This is not the first time that the league has a share in the field of digital communications or communications. It was in the past with Sirius Radio satellite and SPORTLINE. NFL can also have royal rights in “Paramount Skydance Corporation”, which has CBS, due to the league partnership with Skydance.
The league will continue to possess and operate the American Football Association films, NFL+, NFL.com, official teams for the 32nd team, NFL PODCAST and NFL Fast Channel (a free advertising flow channel).
“The moves have been in line with NFL’s longing for a long time to reach $ 25 billion in annual revenue by 2027 – a specific goal for the first time in 2010, when the league revenues amounted to about $ 8.5 billion,” Okonor said. “On the financial point of view, this step also indicates investors that ESPN doubles the differentiation and manipulation of the content by providing a rare and distinguished product in a crowded market. The shares of the shares deliberately to the American Football Association convert Espn from a media license to a real platform partner – with a few properties that compete with the league in terms of cultural importance, display appointments, audience effectiveness, and reproduction The audience.
There are no major changes yet
Viewers may not see any immediate effects until next year as soon as everything is approved.
Besides ESPN, the largest winner of this NFL network, which has seen original programming discounts over the past two years. “Overall access”, which is the main bid of the network since its launch in 2003, ended in May 2024 amid a series of workers’ demobilization and cost reduction movements. “Good Morning Football” also moved from New York, from its inception in 2016, to southern California last year.
NFL moved to the street broadcast facility from Sofi Stadium in Inglewood, California, in 2021.
“The exciting thing for us is that we put a lot in the network. I think it was very effective for the masses. We know that it is in honest hands,” said Godel. “They are innovators, learn about great production and know how to produce it. They will do a great job in the network and take it to another level.”
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