The National Football League and ESPN (NYSE:DIS) have struck an agreement under which many of the league’s top media holdings will be accessible by the sports network in exchange for equity in ESPN, which is worth billions, according to a report by The Athletic on Friday, citing sources.
Under the agreement, ESPN is expected to have access to RedZone, NFL Network, seven more regular-season games, and the NFL’s fantasy football business, as well as the potential to integrate special features (including betting) and potentially more assets, the report said. ESPN is also expected to invest in improving NFL Network programming.
Sources told The Athletic that talks were on and off for four years and have resulted in a “complicated agreement.”
The NFL may receive up to 10% of ESPN equity. There is a possibility of a term length to the agreement, according to one person briefed on the agreement, but it is not yet known how that will be prescribed.
Notably, RedZone is of particular importance to the deal, and the prospect of ESPN packaging the service—which allows fans to see the live action of all the scoring opportunities during Sunday afternoon games from around the NFL—with its existing channels in future negotiations is seen as vital, the report said.
If the deal goes through, the league will divest its TV production business, which will allow it to focus more on its core IP, in return for “a meaningful stake” in one of its most important media partners, the report said.
An official announcement from the parties on the transaction is expected next week.