NFL is expected to take an ownership stake in ESPN

Walt Disney Co. is expected to announce that the NFL is taking an equity stake in the Burbank-based entertainment giant’s sports media property ESPN, according to people familiar with the plan who were not authorized to comment publicly.

Disney may reveal the deal during its earnings call Wednesday. Representatives at the NFL and ESPN declined comment Friday.

In return for the equity stake, ESPN is expected, at minimum, to take over the NFL’s cable properties including the NFL Network and Red Zone, the popular channel that continuously updates fans on the slate of Sunday contests. The NFL Network also has the rights to several regular season games late in the season.

In addition, the NFL owns the league’s production unit, NFL Films, and NFL+, the streaming service that enables subscribers to watch games and other related content on mobile devices.

ESPN has the broadcast rights to “Monday Night Football” and two Super Bowl games in the current NFL contract that runs through 2033 but is expected to be reopened in 2029. The impending deal with Disney means the NFL’s other partners — Fox, NBC, CBS, YouTube and Amazon — will be bidding against an entity that the league has a financial interest in next time the media rights come up.

Discussions between the NFL and Disney have been ongoing for more than 18 months as concerns heightened about the viability of ESPN when consumers continue to bypass or cancel pay TV subscriptions.

The NFL accounts for the vast majority of most-watched programming on U.S. television screens every year, according to Nielsen. But as the TV business has been fragmented and disrupted by streaming, there are even more competitors wanting their own package of pro football games.

In 2022, the NFL awarded the rights to its Sunday Ticket package to Google’s YouTube TV. The seven-year deal for the package, which gives viewers access to out-of-market network TV broadcasts of the league’s Sunday afternoon games, underscored the migration of younger viewers to streaming platforms for video viewing.

Netflix, the world’s largest subscriber-based online video service, has the rights to Christmas Day games, which last year drew tens of million of viewers to the streamer, which has been building up its live programming business.

ESPN has long been the most expensive part of the pay TV bundle, currently getting close to $9 per subscriber. It is now in around 73 million homes, down from 98.5 million in 2013.

Traditional television is losing ground to streaming. Earlier this year, Nielsen reported that TV consumption through streaming services had exceeded broadcast and cable viewing combined for the first time.

ESPN is adapting to the streaming landscape, launching its first stand-alone direct-to-consumer product that will give consumers access to all of its channels without a pay TV subscription. The service will cost $29.99 a month.

TV ratings for ESPN have improved and ad sales have remained strong as advertisers value audiences who watch live programming.

Disney’s stock price fell about 2% to $116.59 on Friday as the broader markets absorbed the pain of President Trump’s new tariffs and weak jobs data.

ESPN is run by Jimmy Pitaro, who has been considered a potential internal candidate to replace Disney Chief Executive Bob Iger when he retires at the end of next year. Disney’s share price has risen 5% so far this year.