The agreement between the NFL and ESPN is “non-binding,” because it is non-approved by the federal government.
The league has commenced the process of securing Uncle Sam’s blessing.
Via Reuters, the NFL has performed outreach to 30 different congressional offices. The lobbying effort includes discussing the terms of the deal and explaining how it will result in greater consumer choice.
(We’re not sure how ESPN owning and/or operating NFL Media assets and the NFL owning 10 percent of ESPN will result in greater consumer choice, but we’re not within the group the league is trying to lobby.)
The Department of Justice will review the arrangement. It likely won’t be approved, if at all, for at least a year. And the current administration remains a wildcard that will undoubtedly cause the NFL, ESPN, ABC, and Disney to: (1) make no sudden moves; and (2) think happy thoughts.
“The deal could potentially result in higher costs for consumers, as Disney’s dominance in sports media could limit options and drive up prices for streaming services or game access,” attorney Andre P. Barlow said.
The NFL’s other broadcast partners may have concerns, too. With the league owning 10 percent of ESPN, the NFL is now competing with its partners. It has a vested interest in helping ESPN win the endless competition for eyeballs and money.
Of course, there’s a simple solution for the NFL’s other broadcast partners — find a way to give them equity, too.
Because the league already owned a portion of Skydance, and because Skydance now owns Paramount, the league has a stake in CBS. Why not finagle a piece of Fox or Amazon or Netflix or any/all other companies that are broadcasting NFL games?
And, yes, that includes Comcast, NBC’s parent company. If/when that ever happens, things could get interesting around here.
To say the least.
