NFL obtains 10% stake in ESPN as part of deal for NFL Network, RedZone, other media properties

The National Football League announced Tuesday a non-binding agreement with ESPN, allowing ESPN to acquire NFL Network and other media assets including RedZone and NFL Fantasy in exchange for a 10% equity stake in ESPN. Financial terms were not disclosed. 

In addition to the sale of NFL Network, the NFL will also license certain content and other intellectual property to ESPN via a second non-binding agreement. The NFL said in a press release that its programming will now be available “on more platforms than ever before,” including on ESPN’s upcoming direct-to-consumer service, as well as cable, satellite and streaming providers. 

Under the terms of the agreement, NFL Network will now be owned and operated by ESPN and fully integrated into the network’s direct-to-consumer service as well as its traditional pay service television distribution, a move that allows the NFL to exit the cable TV business. 

The league launched NFL Network in 2003 and struck gold with the popular NFL RedZone, which shifts between action from every game throughout the league over the course of a Sunday, highlighting scoring opportunities while being intertwined closely with fantasy football. 

The NFL RedZone channel will now be distributed by ESPN to pay TV operators for “for continued inclusion into their sports packages.” While ESPN will own the RedZone brand, the NFL will continue to own, operate, and produce NFL RedZone, as well as distribute the channel digitally. 

Once the deal was announced, longtime RedZone host Scott Hanson confirmed he will remain in his role.

Additionally, ESPN will license an additional three NFL games per season to air on NFL Network, with four games (including some from overlapping windows) shifting to NFL Network. The NFL Network will continue to broadcast seven games per season. 

NFL Fantasy Football will also merge with ESPN Fantasy Football as part of the agreement.

While the deal gives ESPN some of the NFL’s most prominent media properties, the league will retain certain media businesses, most notably NFL Films. The league will also hold onto other platforms such as NFL+, the league’s official website and all 32 teams’ official websites, the NFL Podcast Network, and the NFL FAST channel.

The NFL’s deal with ESPN is still subject to “various approvals,” including by the NFL team owners.