Los Angeles, (Reuters) .- ESPN, the sports chain owned by Walt Disney, reached a historical agreement with the National Football League (NFL) to acquire NFL Network and other media assets of the League. In return, the NFL will obtain a 10% shareholding in ESPN, both parties announced on Tuesday.
The agreement, which will reinforce the offer of the next ESPN streaming service, is still subject to regulatory approval. The financial terms were not revealed.
As part of the transaction, ESPN will also acquire NFL Fantasy, its digital fantasy football digital platform, and will obtain the rights to distribute the NFL channel Redzone to cable and satellite television subscribers.
“Today’s announcement maybe the way for the world leading brand in sports media and the most popular sport in the United States to offer an even more attractive experience for NFL fans, in a way that only ESPN and Disney can achieve,” said Robert Iger, Disney CEO.
According to The Athletic, a half that reported last week that the agreement was imminent, the operation could be worth billions of dollars, although ESPN declined to comment on that figure.
Soser context: They report that the NFL will sell assets of Redzone and NFL average to ESPN
ESPN prepares the launch of its streaming service
The ESPN streaming service, which could be launched this month according to Iger, will cost $ 29.99 per month. It will include access to the complete catalog of Spn sporting events, both professionals and university students, including the NFL, NBA, WNBA, MLB and the NCAA Women’s Championship, in addition to study programs such as Sportscentr and Pardon The Interruption.
“By combining these NFL media assets with ESPN’s scope and innovation, we are creating the final destination for American football fans,” said Jimmy Pitaro, president of ESPN.
NFL Network, Redzone and Shared Rights
The NFL launched NFL Network in 2003 with the aim of capitalizing the income of cable and satellite subscriptions. Although he gained popularity with Thursday Night Football, he never managed to compete directly with ESPN.
With this new agreement, ESPN will have the television and streaming rights of NFL Network, which will continue to transmit seven games per year.
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“The sale of the Channel to ESPN will continue with this exceptional legacy, offering more NFL football to more fans in new and innovative ways,” said NFL Commissioner Roger Goodell.
NFL Redzone, meanwhile, is a service that allows fans to see in real time the scoring opportunities during Sunday afternoon games. The League will continue to be the owner, operator and producer of Redzone, and will maintain the digital distribution rights.
In addition, the NFL will retain the property of certain media assets, such as NFL Films, the NFL Podcast Network and the NFL+platform.
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