ESPN and the NFL are nearing a blockbuster deal to go into business together, according to a report Friday from The Athletic. An official announcement is expected next week.
With the deal, the NFL would place much of its media properties -- including RedZone and perhaps the entirety of NFL Network -- under the ESPN umbrella, while ESPN would get a much-needed infusion of cash.
The NFL has been looking to get out of the TV business for years, while ESPN has been acquiring assets as its prepares to launch its in-house, standalone app. The app, creatively named "ESPN," will go direct-to-consumer at $29.99 per month. An official launch date is expected next week, and the app has been the company's highest priority for years; cable and satellite subscriptions peaked at around 110 million in 2011 but slunk to 65.3 million by 2024, according to Nielsen.
With the move, the NFL could own up to 10 percent equity in ESPN.
In exchange for that, and in the part most relevant to consumers, ESPN will likely come to manage all things NFL Network. The Athletic writes that NFL Network could become a fully folded-in cousin to SEC and ACC Networks, with talent bouncing between their "home" network and the Mothership. Additionally, NFL RedZone could become a property of ESPN the App, with subscription available for purchase within the app. (The NFL announced a 7-year, $2 billion per year deal with YouTube TV for the rights to NFL Sunday Ticket beginning with the 2023 season.)
In short, the NFL is no longer looking to make its own TV, instead to make money by selling its properties to TV and TV-adjacent networks. NFL Network no longer airs Thursday Night Football after simulcasting games for a decade and a half, and the popular "Good Morning Football" morning show has been shedding talent after oddly going on hiatus last year. NFL Media (the network and NFL.com) have been hit with layoffs despite the league's $14 billion annual profits.
ESPN graduated from curiosity into a behemoth by betting big on the NFL. Now, as the cable model is dying, ESPN is scooping up NFL content at every opportunity as it looks to jump from cable to streaming. And in turn, the NFL is betting big on ESPN.