Blockbuster media deal between ESPN and NFL ‘inside the 5-yard line’

Two of the biggest sports brands in American history are on the doorstep of a major deal that could change the way fans watch professional football. The Athletic, CNBC, and other sports media outlets report that the deal is close, but not yet finalized, and there are many moving parts.

What media properties does the deal involve?

It sounds like a typical sports trade. The NFL, arguably the most successful sports league in history, will acquire approximately 10% of Disney-owned ESPN. In return, ESPN will take full ownership of the NFL Network and the NFL Red Zone channels. Other potential assets in the deal include NFL.com and the seven NFL games that currently air on the NFL Network each season.

The Athletic’s Andrew Marchand said on Wednesday, July 23, that the deal is “inside the 5-yard line,” and the cash and/or equity ESPN will surrender is “not yet known, but it will be enormous.” Two NFL sources told the Sports Business Journal last week that they had received an informal notification about a special league meeting in August to discuss, or possibly even vote on, the deal.

Negotiations between the two powerhouse entities have been taking place on and off for at least four years. It’s been rumored that the NFL has wanted to offload its media properties for some time.

Why is ESPN interested in this deal?

The new deal also coincides with the expected launch of ESPN’s direct-to-consumer streaming service this fall. The service, which has a $29.99 price tag for the first 12 months, reportedly could include some of the NFL content the network acquires, including the popular Red Zone channel.

For more than seven hours every Sunday during the season, Red Zone host Scott Hanson takes viewers to each stadium where teams are threatening to score or make big plays. In a recent documentary about the creation of the broadcast, Hanson described its impact.

“We’ve been on in the White House,” Hanson said. “We’ve been parodied by Saturday Night Live and been on Family Guy. People dress up as me for Halloween. Another amazing moment was at a Patriots Super Bowl. Tom Brady taps me on the shoulder and says, ‘You’re doing a great job on Red Zone.’ When the G.O.A.T. tells you he’s watching your show, that’s a big deal.”

What has fans upset about the deal?

Red Zone has changed the way fans watch the NFL. Having the channel in its rotation would allow ESPN to raise its subscription prices or offer the Red Zone at a separate premium. That, however, isn’t the only reason some fans are upset with the possibility that ESPN may soon be in charge.

They fear changes to the day-long show that could involve ESPN personalities Pat McAfee and Stephen A. Smith, among others. The online comments are particularly one-sided.

“‘Seven hours of commercial free football,’ says Pat McAfee as I hurl myself into a volcano,” one fan posted.

“7 hours of commercial free football with Stephen A., please kill me,” another reads.

“RedZone will become the ‘Pat McAfee show watches NFL RedZone’ channel. Sigh,” Ryan Wile wrote.

What other factors are driving the potential deal?

It’s not known how ESPN will distribute its potential new properties across its various platforms.

The network already pays the NFL $2.7 billion per season for 25 games as part of its Monday Night Football package.

With increased competition from Amazon Prime on Thursdays, Netflix on Christmas and YouTube’s NFL Sunday Ticket, entering into a landmark agreement with the league could potentially put the “World-Wide Leader In Sports” back into the driver’s seat.

If the deal goes through as reported, and the NFL owns a minority stake in the network, it could also change how ESPN’s news operation covers the league.