Next time the NFL doesn’t like the way ESPN covers the league, executives can look in the mirror and go straight to the bosses.
The Disney sports media giant and the massive professional football league confirmed late Saturday that they have signed a deal that will make the NFL a minority shareholder in ESPN, in exchange for control of the NFL Network and the popular NFL Red Zone highlights service. The partnership is likely to increase the appeal of ESPN’s new direct-to-consumer streaming service, and comes as a soaring sports economy is forcing traditional media companies to seek new models to help keep big-game coverage on schedule.
“The NFL and ESPN are pleased to announce that the sale of NFL Network and other NFL media assets to ESPN has officially been completed. Upon completion, we will begin integrating NFL employees into ESPN in the coming months,” ESPN and NFL said in a joint statement. “Looking to the future, NFL fans can look forward to expanded NFL programming, greater access to NFL Network, innovative fantasy experiences and unparalleled coverage of America’s most popular sport.”
The deal with Disney gives the NFL a 10% stake in ESPN, which sports advisory firm Octagon estimates is worth between $2.2 billion and $2.5 billion. A reporter for The Athletic previously reported that a deal had been finalized.
The agreement is the latest example of a business partnership between a sports organization and a media company. Fox recently acquired a 33% stake in Penske Entertainment, which owns the IndyCar series and Indianapolis Motor Speedway. Fox also owns part of the nascent United Football League. ESPN acquired a stake in the Premier Lacrosse League in June and also signed a new five-year rights agreement with the organization. Warner Bros. Discovery is part owner of the upstart women’s basketball league Unrivaled.
These new types of team-ups are making more and more sense at a time when sports rights are becoming more important to media companies looking to attract a broader audience. Even as consumers increasingly watch their favorite videos on demand, whenever they want, advertisers and distributors still crave it. At the same time, the price of keeping sports in their portfolios has skyrocketed, even as many traditional media companies struggle with advertising and distribution declines.
ESPN and NFL Network viewers won’t notice any major changes right away. NFL Media employees will officially become part of ESPN in April, according to officials. NFL Network will be integrated into ESPN’s streaming outlet at the start of the next regular season in the fall.
NFL games are the most stable asset a media company can acquire, at least in the streaming era. This broadcast is typically the most watched in years. Still, the economics for the cable networks that air the games aren’t as strong.
Thanks to streaming penetration, ESPN and ESPN2 cable networks are expected to have 57.9 million and 57.8 million subscribers, respectively, by the end of 2026, compared to 61.4 million at the end of 2025, according to data from Kagan, the research division of S&P Global Market Intelligence. Meanwhile, NFL Network’s subscriber base has been steadily declining, Kagan said. The number will increase from 72.3 million in 2023 to 46.7 million in 2024.
This partnership could also prove beneficial for Disney in the not-too-distant future. The final rights deal, which was an 11-year deal starting in the 2022 season, gave the NFL the right to overhaul the contract and seek better terms starting in 2029. Owning a portion of ESPN could be enough to prevent the league from seeking a redo of ESPN’s “Monday Night Football” rights.
