On the latest Sporticast episode, hosts Scott Soshnick and Eben Novy-Williams discuss some of the biggest sports business stories of the week, including the multibillion-dollar media deal between ESPN and the NFL.
Following years of talks, Disney reached an agreement to buy NFL Network and a number of other assets from the NFL in exchange for a 10% stake in ESPN. At its simplest, it is an assets-for-equity arrangement. Under the surface, it involves live game rights, RedZone rights, shoulder content, real estate, carriage, fantasy sports and ownership.
The hosts talk about all the specifics. They talk about how long the NFL has been trying to find a strategic partner of some sort for its league-owned media platform, and also the evolution of the NFL-ESPN relationship. When Jimmy Pitaro took over as head of ESPN back in 2018, the relationship between the company and the world’s richest sports league was on the fritz. Seven years later, it’s stronger—and more permanently linked—than ever.
They also talk about the NFL’s recent push to share in the equity upside of the businesses that grow in part because of football’s popularity. This was the genesis of 32 Equity, the venture fund launched by NFL owners back in 2013, and a number of recent commercial deals, including the league’s equity-heavy partnership with Genius Sports. They also talk about the different types of equity deal structures held by the NFL, and why some of that value is shared with players in the salary cap, and some of it is not.
The hosts close by talking about a few other topics. Shedeur Sanders is very popular among Cleveland Browns fans, but might not make the team. And should Cal Raleigh, the breakout MLB star with a nickname beloved by baseball fans, be profiting off his Big Dumper moniker?
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