Executive leadership at ESPN and its parent company Disney have engaged in preliminary discussions about the possibility of a deal that would bring major American professional sports leagues on as minority investors, according to a report from CNBC.
Disney CEO Bob Iger and ESPN President Jimmy Pitaro are believed to have been involved in the talks with the NBA, NFL and MLB, CNBC reported, citing a person with knowledge of the situation.
ESPN reportedly held the discussions with the leagues as the cable sports network considers creating a strategic partnership. "We have a longstanding relationship with Disney and look forward to continuing the discussions around the future of our partnership," an NBA spokesperson said in a statement. ESPN, the NFL and MLB have not commented on the matter.
The NFL's media assets consist of NFL Network, RedZone and NFL.com.
Both companies' negotiation exclusivity expires in 2024.
In theory, a jointly owned subscription streaming service among multiple major professional sports leagues could give consumers access to unprecedented packages of games.
ESPN's business model has primarily relied on cable subscribers, but Disney seems to want to pivot as traditional cable subscriptions continue to decline nationwide. Live sporting events still typically yield strong ratings for ESPN, which could be one of the reasons behind the pursuit of a possible partnership with the leagues.
However, the NFL, MLB and NBA make a significant amount of revenue from the media rights deals with their respective media partners. (FOX Business)
No comments:
Post a Comment