Ever since the NFL announced it was looking to sell NFL Network and other media assets, ESPN had been seen as one of the favorites to make a deal.

Nearly five years later, a framework is finally in place.

The NFL announced Tuesday night that it has entered into a nonbinding agreement with ESPN. Under the terms, ESPN will acquire NFL Network, NFL Fantasy and the rights to distribute the RedZone channel to cable and satellite operators and the league will get a 10% equity stake in ESPN.

The league and ESPN still have to negotiate a final agreement and get approval from NFL owners. The agreement will also have to undergo regulatory approvals.

“Sometimes great things take a long time to get to the point where it’s right. And we both feel that it is at this stage,” NFL Commissioner Roger Goodell said in a call with The Associated Press.

Along with the sale of NFL Network, the NFL and ESPN will have a second nonbinding agreement where the NFL will license to ESPN certain NFL content and other intellectual property that can be used by NFL Network and other assets that have been purchased.

“We have been talking about it in earnest for the last few years. But interestingly enough, we started talking about this over a decade ago but nothing really ended up happening. And we got back at it when I came back to Disney after my retirement,” Disney CEO Bob Iger said in a call with the AP.

What ESPN gets

ESPN is expected to launch its direct-to-consumer service before the end of September. The service would give cord-cutters access to all ESPN programs and networks for $29.99 per month. The addition of more NFL programming increases the value.

Many viewers will receive the service for free as part of their subscription to cable, satellite and most streaming services.

NFL Network — which has nearly 50 million subscribers — would be owned and operated by ESPN and would be included in ESPN’s direct-to-consumer product.

The NFL RedZone channel would be distributed by ESPN to cable and satellite operators. However, the NFL will continue to own, operate and produce the channel as well as retain the rights to distribute the channel digitally. ESPN would also get rights to the RedZone brand, meaning RedZone channels for college football and basketball or other sports could be coming in the future.

What the NFL receives (and retains)

The league gets a 10% equity stake in ESPN. Aidan O’Connor, a senior vice president at the Prosek Partners marketing firm, estimates the value of that would be $2.2 billion to $2.5 billion.

ESPN is currently 80% owned by ABC Inc. as an indirect subsidiary of The Walt Disney Company. The other 20% is owned by Hearst. Once the deal is official and approved, the breakdown of ESPN will be 72% ABC Inc., 18% Hearst and 10% NFL.

No major changes yet

Viewers will likely not see any immediate impacts until next year once everything is approved.

Besides ESPN, the biggest winner in this could be NFL Network, which had seen reductions in original programming the past couple years. “Total Access,” the network’s flagship show since its launch in 2003, ended in May 2024 amid a series of layoffs and cost-cutting moves. “Good Morning Football” also moved from New York, where it had been since its start in 2016, to Southern California last year.

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AP NFL: https://apnews.com/hub/nfl