NFL owners vote to approve ESPN-NFL Network acquisition

Before the NFL’s mega-deal with ESPN reaches the federal approval process, it needed sign-off from a different key group of stakeholders: the owners.

And on Wednesday, the league got just that. According to a report from CBS Sports NFL insider Jonathan Jones, the NFL received approval from team ownership regarding ESPN’s acquisition of NFL Network, a key pillar of the league’s wide-ranging deal with the Worldwide Leader in sports.

Now, the NFL and ESPN will enter the much more arduous endeavor of receiving regulatory approval from the federal government. That timeline, prior reports suggest, could take up to two years.

If approved, ESPN will gain ownership of NFL Network, the linear distribution rights for NFL RedZone, and other ancillary NFL Media properties. In exchange, ESPN will give a 10% equity stake in itself to the league.

For ESPN, the deal is a potential coup for its new direct-to-consumer streaming app. With ownership of NFL Network, ESPN can include the channel’s programming directly on its platform. Not only does this include studio content like Good Morning Football, but also the seven regular season games NFL Network broadcasts annually.

The approval process for this deal with the league’s owners was likely a formality; the NFL wouldn’t have sold off its media assets if ownership didn’t want to. One could safely presume the move was rather popular among the ownership class. NFL Network is now one more expense the league can rid itself of, improving the bottom line for owners. And in return, the league gets a 10% stake in ESPN that it can use as it sees fit, be that through influence or an eventual sale.

For now, all eyes will be on the federal government.