Disney is looking to bring on a strategic partner for ESPN. Tech companies, private equity firms, and even rival networks have been bandied about as possibilities. Two weeks ago, it was reported that the NFL and NBA had been approached by Disney about a deal. Now, we know a little bit more about what Disney would want an equity partnership to look like.
ESPN may see an opportunity in the collapse of the regional sports network model. A report from Jessica Toonkel and Isabella Simonetti in the Wall Street Journal says that Disney is interested in the local broadcast rights for teams in America’s four major professional sports leagues.
Executives at Disney have already met with Major League Baseball about carrying local broadcasts as an add-on to streaming platform ESPN+.
The report from Toonkel and Simonetti says that ESPN is considering keeping ESPN+ on the market even after it begins offering a streaming option for all of its linear content. It would offer a lower price point to fans not willing to pay what is expected to be a high monthly cost to stream all of ESPN. Adding local broadcast rights to ESPN+ would certainly make it more appealing and more viable when that happens.
Can a league really buy an equity stake in ESPN? Certainly the Department of Justice would want assurances against potential collusion. Other networks in business with the league would also have concerns that they are being treated fairly in negotiations.
