ESPN has had a longstanding relationship with NFL and the other major professional sports leagues in North America.
Now under the umbrella of Disney, it appears that the four-letter network is looking to expand these relationships.
According to Alex Sherman of CNBC, ESPN has had “early talks” with the NFL, NBA and MLB about a partnership that would include the leagues taking equity in the network.
“As Disney considers a strategic partner for ESPN, Chief Executive Officer Bob Iger and ESPN head Jimmy Pitaro have held early talks about bringing professional sports leagues on as minority investors, including the National Football League, National Basketball Association and Major League Baseball, according to people familiar with the matter,” Sherman reported.
This new report comes at a time when ESPN is in the midst of several cost-cutting moves. That includes laying off some of the network’s most-notable on-air personalities in recent weeks.
While the NFL did not respond to an inquiry from CNBC, the NBA released a generic statement on the report. “We have a longstanding relationship with Disney and look forward to continuing the discussions around the future of our partnership,” a spokesperson for the NBA said.
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The move would make sense for Disney for several reasons. However, the same thing can’t be said for the National Football League and the others mentioned. In particular, the NFL is in the midst of a record-breaking media rights deal, including ESPN paying out $2.7 billion annually to continue broadcasting Monday Night Football.
From a more macro perspective, ESPN selling some equity to a league could very well create a conflict of interest as competitors would see it as an issue. That doesn’t even take into account questions about objectivity in reporting.