NFL reportedly considering taking stake in ESPN
The NFL is reportedly in advanced discussions to acquire ownership of ESPN, the largest sports media group in the United States.
New York Post Reported last week The NFL is in discussions with Disney-owned broadcaster ESPN to acquire a stake in the sports media organization. While neither party has publicly commented on the rumors, sources close to the negotiations said the potential deal would result in ESPN taking control of NFL Media.
NFL Media is the premier marketing and communications arm of the Professional Football League. The company operates NFL Network, NFL.com, NFL RedZone, NFL Films and NFL+.
Insiders say the NFL has been acquiring its media divisions for years. In recent years, the league has signed media deals worth more than $110 billion with ESPN, Amazon, CBS, Fox, NBC and YouTube.
ESPN currently pays the NFL about $2.6 billion a year to host about 25 games, most of which are broadcast on the cable network's prime-time Monday Night Football.
Oh, times have changed
New Jersey is allowing Atlantic City casinos, racetracks and online sportsbooks to accept legal bets on professional and college sports including the NFL, which has been New Jersey's main opponent.
The U.S. Supreme Court ultimately ruled against the NFL, MLB, NBA, NHL and NCAA in May 2018 and gave states the freedom to enact sports betting laws. Prior to the landmark ruling, federal law limited single-game sports betting to Nevada.
The NFL, the other four major professional leagues and the NCAA have embraced sports betting after seeing increased fan engagement, increased television and streaming, and general interest in the sports they sanction. Sports betting has been blamed for the increase in broadcast deals the NFL subsequently received.
The NFL prohibits players, coaches, team personnel, officials and league employees from placing bets on the NFL.
ESPN BETTING
Last year, ESPN partnered with Pennsylvania-based regional casino operator Penn Entertainment. In August, the Hollywood casino operator announced it would pay ESPN $1.5 billion over 10 years to integrate the sports media brand into its new sports betting venture.
The University of Pennsylvania announced it would give up Barstool Sports as part of the development, for which it paid more than $500 million as of 2020. Penn has faced a host of regulatory issues due to the flamboyant personality of Barstool founder Dave Portnoy.
ESPN is reportedly developing a direct-to-consumer (DTC) streaming service, slated to launch in 2025. By bypassing cable networks, ESPN is looking for "strategic partners" to assist with content and distribution.
NFL Network will broadcast Sunday's international series and Saturday's season finale to the ESPN DTC service.NFL Network also broadcasts preseason games.
The NFL's deal with ESPN does not include the coveted Sunday Ticket that Google's YouTube TV could acquire by the end of 2022 for more than $2 billion per season.
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Source: www.casino.org
