In a significant strategic move, Walt Disney Co. DIS and the National Football League (NFL) are reportedly in serious discussions over a potential deal that might see the NFL acquire a stake in ESPN, as per sources.
The NFL's media unit could also be placed under Disney's control.
According to a report by Variety on Sunday, this agreement would strengthen Disney's association with the NFL, reducing the likelihood of Disney losing crucial sports rights for highly-rated football games. The arrangement could also bring NFL's assets like the NFL Network and RedZone under Disney's umbrella.
See Also: ESPN And NCAA Reach $920 Million, 8 Year Media Rights Agreement
Neither Disney nor the NFL has confirmed these discussions, which were first reported by The New York Post and The Atlantic. Disney has been looking for partners for ESPN to counter falling affiliate revenue from cable distribution. Sports leagues, which have a vested interest in ESPN's success, are among the entities Disney has approached.
The deal is not finalized, and one source suggests it would need approval from NFL owners in a meeting slated for mid-Spring. If successful, it could have significant effects on a range of sports entities, potentially adding NFL Network to ESPN's sports content and possibly moving NFL RedZone to ESPN+.
The discussions follow recent efforts by Disney and ESPN to strengthen their position among NFL executives. This includes simulcasting some "Monday Night Football" games on ABC and enticing star announcers from Fox Sports.
Read Next: NFL Cannabis Policy Shift Toward Embracing CBD Research For Tackling Concussions And Pain
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
