ESPN mulls league participation
July 24, 2023
It is reported ESPN has held talks with some of the most powerful leagues in US sports, including the National Football League, the National Basketball Association and Major League Baseball, about taking a minority stake in its business.
The Walt Disney owned network has had exploratory talks with the leagues as it tries to figure out its way forward in the streaming age, the NYT reports.
Bob Iger, CEO, told CNBC recently it was “looking for strategic partners” that could help ESPN with either distribution or content. He’s also said the ABC network may not remain core to the business.
Selling a stake in ESPN could bring in cash or be in lieu of paying sky-high rights to sports leagues. The cost of sports rights, meanwhile, has been driven up by newer entrants, including Apple, Amazon and YouTube.
Disney is certain ESPN’s future lies in streaming. There have been reports the network was laying the groundwork to make its primary channel, which has long existed only on cable, available to streaming viewers. That would create a turning point for traditional TV distributors, which have staved off decline by offering live sports to cable subscribers.