ESPN has made a nonbinding deal with the National Football League to purchase media properties such as NFL Network, NFL Fantasy platform, and RedZone channel rights. The NFL gets 10% ownership in ESPN by this exchange, but the deal needs agreement from NFL owners and approval from regulators.

Equity Exchange and Asset Control

This agreement lets ESPN (which ABC Inc. owns 80% and Hearst owns 20%) add NFL Network to its planned new streaming service (direct-to-consumer) that starts on August 21 and costs $29.99 per month. If the deal finishes, ESPN will have a new ownership structure: Disney at 72%, Hearst at 18%, and NFL owning 10%. ESPN will control NFL Network, which has close to 50 million subscribers, and keep it on classic pay TV plans.

NFL Fantasy will join with ESPN Fantasy Football and will now be the official fantasy football game of the league. Jimmy Pitaro, the ESPN chairman, said, “We join these NFL assets and ESPN’s reach and improvement to give football fans a main place.” He also explained that working with the NFL and ESPN gives fans new ways to follow the game at any time or place, helping ESPN’s digital goals and getting ready for the new streaming service.

Streaming and Programming Adjustments

RedZone channel stays owned, made, and managed by NFL, but ESPN will have rights to show it through cable and satellite providers and use its trademark. Digital streaming of RedZone and other media like NFL Films, NFL+, NFL.com, NFL Podcast Network, and NFL FAST Channel stays controlled by NFL. The deal says ESPN can air three more NFL games each season, now showing a total of 28 games.

Four NFL games will move from ESPN’s lineup to NFL Network, but information about these games is not shared yet. Disney+ and Hulu will stream live ESPN, ABC, and ESPN Deportes coverage of the NFL Draft from 2026. ESPN and ABC both show Rounds 1-3, ESPN does Rounds 4-7, and ABC shows those later rounds too; College GameDay, NFL Live, and ESPN Radio continue with draft coverage.

Strategic Rationale

Earlier, NFL got ownership in media groups like Sirius Satellite Radio and SportsLine, and it may have a part in the new Paramount Skydance Corporation that owns CBS, thanks to Skydance partnership. Hans Schroeder, NFL media distribution executive, said, “It is our first time giving a partner control over a business we built and increased, and it’s a fresh process that we’ll balance fairly and cooperate with all.” Bob Iger, Disney CEO, stated that he returned to Disney and saw ESPN needed to make a bigger, improved, digital, direct-to-consumer product for business and for sports fans.

He mentioned that high-quality sports content must include the NFL because nothing brings more value or a bigger audience than it. NFL Commissioner Roger Goodell said, “NFL Network gave fans Thursday Night Football, Combine broadcasts, special stories, and latest news. ESPN’s purchase of the Network will continue this history, offering more NFL games to more fans in fresh ways.”