ESPN expands NFL partnership with acquisition of NFL Network, fantasy operations, and RedZone rights

ESPN has entered into a nonbinding agreement with the National Football League to acquire several of the league’s media properties, including NFL Network, the NFL Fantasy platform, and distribution rights to the RedZone channel.

In exchange, the NFL will receive a 10% equity stake in ESPN. The deal is still subject to NFL owners’ and regulatory approval.

Equity exchange and asset control

The agreement positions ESPN, which is 80% owned by ABC Inc., a subsidiary of The Walt Disney Company, and 20% owned by Hearst, to integrate NFL Network into its upcoming direct-to-consumer (DTC) streaming service, set to launch on August 21 at a $29.99 monthly price.

Once finalized, ESPN’s new ownership structure will comprise 72% Disney, 18% Hearst, and 10% NFL.

The NFL Network, with nearly 50 million subscribers, will be owned and operated by ESPN and remain accessible through traditional pay TV services. NFL Fantasy will be merged with ESPN Fantasy Football, which will become the league’s official fantasy football game.

“By combining these NFL media assets with ESPN’s reach and innovation, we're creating a premier destination for football fans,” said Jimmy Pitaro, ESPN chairman. “Together, ESPN and the NFL are redefining how fans engage with the game -- anytime, anywhere. This deal helps fuel ESPN's digital future, laying the foundation for an even more robust offering as we prepare to launch our new direct-to-consumer service."

Streaming and programming adjustments

The RedZone channel will continue to be owned, operated, and produced by the NFL, with ESPN securing rights to distribute it to cable and satellite operators and use its trademark. The league will maintain digital distribution rights for RedZone and retain control over other media units, including NFL Films, NFL+, NFL.com, the NFL Podcast Network, and the NFL FAST Channel.

ESPN will license three additional NFL games per season, bringing its total to 28. Four existing games will shift from ESPN’s schedule to NFL Network. The dates and matchups for these changes have not been disclosed.

Starting in 2026, Disney+ and Hulu will carry live streams of ESPN, ABC, and ESPN Deportes’ NFL Draft presentations. ESPN and ABC will handle Rounds 1-3, with ESPN airing Rounds 4-7 and ABC simulcasting. College GameDay, NFL Live, and ESPN Radio will remain part of the draft coverage.

Strategic rationale

The NFL has previously held equity positions in media companies, including Sirius Satellite Radio and SportsLine. It may also hold equity in the newly formed Paramount Skydance Corporation, which owns CBS, due to the league’s partnership with Skydance.

“This is new as far as a partner now operating a business that we built, ran, and grew,” said Hans Schroeder, NFL executive vice president of media distribution. “It’ll also be a little bit new again with some of the dynamics here, but we’ll continue to balance that in a really arm's-length way where we’ll think about how we manage and work across to all our partners.”

Bob Iger, Disney CEO, said: “When I came back to Disney and assessed essentially the future of ESPN, it became clear that ESPN had to launch a bigger and more robust and digital or direct-to-consumer product, not only for the sake of ESPN’s business, but for the sports fan. And obviously, when you start thinking about high-quality sports content, your eyes immediately head in the direction of the NFL because there’s really nothing more valuable and more popular than that.”

NFL Commissioner Roger Goodell added: "Whether it was debuting Thursday Night Football, televising the Combine, or telling incredible football stories through original shows and breaking news, NFL Network has delivered. The Network's sale to ESPN will build on this remarkable legacy, providing more NFL football for more fans in new and innovative ways."