ESPN to acquire NFL Network and RedZone in equity deal with NFL

ESPN and the National Football League have entered into a non-binding agreement under which ESPN will acquire NFL Network and associated media properties in exchange for a 10 percent equity stake in ESPN.

The deal includes the transfer of NFL’s RedZone Channel and NFL Fantasy, which will merge with ESPN Fantasy Football. ESPN will assume ownership and operation of NFL Network and plans to integrate it into its forthcoming direct-to-consumer streaming service while maintaining traditional cable and satellite distribution.

Under a second agreement, the NFL will license games, NFL RedZone, NFL Films programming and other media content to ESPN.

The network also plans to air three additional NFL games per season on NFL Network, while four existing ESPN games will shift to NFL Network. The NFL Network will continue to broadcast seven games annually.

The NFL will retain ownership and operation of other media properties, including NFL Films, NFL+, NFL.com, the NFL Podcast Network, the NFL FAST Channel and official club sites. It will also continue to produce NFL RedZone and retain digital distribution rights for that channel.

The NFL’s RedZone Channel will become part of The Walt Disney Company’s distribution portfolio, allowing ESPN to distribute it to pay television providers. The merged fantasy platforms will form the official season-long fantasy football game of the NFL.

According to the companies, the agreement is intended to increase accessibility, expand reach and enhance the availability of football programming across platforms, including ESPN’s upcoming streaming service.

“This deal helps fuel ESPN’s digital future,” said Jimmy Pitaro, chairman of ESPN. “Together, ESPN and the NFL are redefining how fans engage with the game.”

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The transaction is subject to definitive agreement terms, league approval from NFL team owners and other customary closing conditions.

ESPN, 80 percent owned by ABC Inc., a subsidiary of Disney, and 20 percent owned by Hearst, currently pays $2.7 billion annually for its rights to “Monday Night Football.” Under its current agreement with the NFL, ESPN will air Super Bowls following the 2026 and 2030 seasons.

The NFL has explored divesting its 24/7 network amid the cost of operations and the growing value of its long-term media rights contracts. Discussions were held with other prospective buyers, though ESPN emerged as the selected partner.