The US Football Association takes 10 % stake in Disney’s Espn, which will take over the American Football Association network
The US Football Association has reached a deal to obtain a 10 % royal share in ESPN from Walt Disney, a step expected to strengthen the relationship of sports media with the league for years to come.
Disney and the US Football Association announced the Blockbuster arrangement on Tuesday night.
In exchange for the share share of more than $ 2 billion based on the recent assessments of the network, ESPN will undertake the NFL cable properties including NFL. Disney will distribute Redzone, the common channel that constantly updating fans in Sunday competitions.
The American Football Association Network also has the rights of seven ordinary seasonal matches – giving ESPN a larger segment of the TV tie.
This arrangement comes two years after Disney began evaluating options to increase ESPN to the maximum range in the changing rapid TV scene. The Burbank giant had to look further than his dominant partner.
In addition to selling NFL, NFL and ESPN also enter into a second non -binding agreement, according to which the US Football Association will license a specific NFL content and other intellectual property for use by the American Football Association and other assets. ESPN now owns the Redzone brand and can use it for other sports.
The deal is a great victory for the Chairman of the ESPN Board of Directors Jimmy Betaro, who took over the Disney unit in 2018 with an authorization to improve the company’s relationship with the American Football Association.
The share share comes before the ESPN moves to the direct broadcasting of the consumer this fall, which allows consumers the opportunity to buy the company’s sports channels without subscribing to the TV via the satellite. NFL will also have a broadcast service.
“This is an exciting day for sports lovers,” Betaro said on Tuesday in a statement. “By combining the assets of the media in the American Football Association and the follow-up and innovation of ESPN, we create a major destination for football fans. Together, ESPN and NFL redefine how fans deal with the game-at any time, anywhere. This deal helps fuel the ESPN digital future, and set the foundation to provide more powerful offers with our willingness to launch a new direct service for the future.”
The new product aims to restore sports enthusiasts who give up cable and satellite services. ESPN witnessed a decrease in cable decrease from 98 million homes in 2013 to about 72 million homes as a result of reducing the rope.
“Today’s Declaration paves the way for the leading brand in the field of sports and sports in America to provide a more persuaded experience for fans of the American Football Association, in a way that can only ESPN and Disney,” Bob Egger, CEO of Disney, said in a statement.
ESPN has broadcasting rights “Monday Night of Football” and two SUPER BOWL matches in the current US Football Association contract that will continue until 2033 but is expected to reopen in 2029.
The US Football Association also realized that millions of consumers no longer pay for the packages of the cable channel, which cut off the distribution of the NFL network. The deal with ESPN will provide the league with another strong channel to reach its fans.
“Since its launch in 2003, NFL has provided millions of fans unprecedented access to the sport they love,” US Football Association Commissioner Roger Godel said in a statement. “Selling the network will depend on ESPN on this wonderful legacy, providing more football for more fans in new and innovative ways.”
The deal with Disney means other partners of the American Football Association – Fox, NBC, CBS, YouTube and Amazon – you will provide bids against an entity that the league has a financial interest next time that media rights come.
Lachlan Murdoch, CEO of Fox Corp. edited. On Tuesday, the Wall Street analysts that he does not care that the American Football Association’s partnership with ESPN will affect the position of his network with the league.
“We have an enormous relationship with the American Football Association,” Murdoch said. “We appreciate that they are a fan of broadcasting networks and cables, and we look forward to working with them and deepening our relationship with them and we are advancing.”
STaff Meg James writer contributed to this report.