NFL, ESPN agree to two expansive non-binding agreements

“Today’s announcement paves the way for the world’s leading sports media brand and America’s most popular sport to deliver an even more compelling experience for NFL fans, in a way that only ESPN and Disney can,” CEO of The Walt Disney Company Roger Iger said in a statement released by ESPN’s Lily Blum.

He continued, “Commissioner (Roger Goodell) and the NFL have built outstanding media assets, and these transactions will add to consumer choice, provide viewers with even greater convenience and quality, and expand the breadth and value proposition of Disney’s streaming ecosystem.”

Given ESPN’s streaming abilities — through multiple streaming apps such as ESPN Watch, ESPN+, Hulu and Disney+ — the agreements should make available lots of content exclusive to the NFL and NFL Network available in multiple formats in addition to the usual cable and satellite option. The statement also cites an additional platform in what they’re calling “ESPN’s upcoming direct-to-consumer service.”

While YouTube TV still owns the rights to air NFL Sunday Ticket and ABC/ESPN/Disney/NFL Network, FOX, CBS/Paramount/Nickelodeon, NBC/Peacock, Amazon and Netflix all have individual rights to air certain games, ESPN gets “broad rights to the RedZone brand and will distribute the NFL RedZone Channel to pay TV operators for continued inclusion into their sports packages.” 

Though ESPN gets broad rights to the brand and TV distribution rights, the NFL will continue to own, operate and produce NFL RedZone and retain the rights to distribute it digitally. ESPN’s platforms will now license an additional three NFL games per season (all to air on NFL Network) and will adjust its overall NFL game schedule with four games shifting to NFL Network, as well.

The league will continue to own and operate its retained media businesses such as NFL Films, NFL+, NFL.com, the NFL Podcast Network, the NFL FAST Channel and the official sites for all 32 teams. The two parties’ fantasy applications, NFL Fantasy Football and ESPN Fantasy Football, will merge, “creating the official Fantasy season-long game of the NFL and one best-in-class digital experience.”

While much of the news is being presented by the parties involved as a shiny new present for NFL fans, there are some perceived negatives to the agreements. While Iger calls the transactions additions “to consumer choice,” in reality this is a step closer to a monopoly. At the moment, existing contracts keep the NFL readily available from several different streamers and television channels, but when those contracts expire, how willing will the NFL be to dole out games to networks other than the one it has a 10% stake in?

ProFootballTalk’s Mike Florio offered his usual candor in a making another relevant point about ESPN’s reporting responsibilities. When issues such as the ownership collusion case we’ve seen this summer break the NFL news circuit, how critical will ESPN be towards its minority owner?

Ultimately, the transactions are still subject to the parties’ negotiation of definitive agreements, various approvals (including those of NFL team owners and federal regulators) and customary closing conditions. There’s still quite a ways to go, but Tuesday’s agreement gives a peek into what the NFL media future will look like.