The ESPN-NFL streaming agreement could face a DOJ obstacle on antitrust concerns: report
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The ESPN-NFL agreement would have faced a major obstacle to the United States Ministry of Justice (DOJ).
The parties agreed with an agreement, officially announced on Tuesday, in which ESPN acquires the NFL Network and other media assets, including the NFL Redzone, of the National Football League In exchange for participation in the League, taking a 10% stake in the All-Sports network as part of a historic agreement.
However, the DOJ should perform a substantial examination of the new ESPN-NFL transaction, Reuters reported, citing a source. Another source said that obtaining American antitrust authorization could take up to 12 months.
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ESPN recently announced its direct streaming platform for consumers. (Robin Alam / Icon Sportswire via Getty Images / Getty Images)
Athletics initially indicated that an agreement “will require regulatory approval, which could take nine months to one year”.
Andre P. Barlow, partner of Doyle, Barlow & Mazard, said that the transaction “surely raises competition problems” because he could potentially give Disney a greater control over television sports trolleys and reduce competition.
“The agreement could potentially result in higher costs for consumers, because Disney domination in sports media could limit options and raise prices for streaming services or access to games,” said Barlow.
A view of the NFL logo displayed on the field during the Chiefs of Philadelphia Eagles against Kansas City to Caesar Superdome. (Getty Images / Getty Images)
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NFL and ESPN spokesperson did not immediately respond to requests for comments.
The expected examination comes as the antitrust division of the Ministry of Justice examines a separate agreement Disney arrived earlier this year to acquire A controlling participation in the FUBO TV sports streaming service. The division required additional information from companies in March to examine whether the agreement would unduly concentrate the sports streaming market.
The agreement said the NFL Redzone will be available on the new streaming service directly to ESPN consumers, which is available on August 21.
“By combining these media assets from the NFL with ESPN’s scope and innovation, we create a leading destination for football fans,” said ESPN president Jimmy Pitaro, in a press release. “Together, ESPN and the NFL redefine the way fans are involved with the game – at any time, anywhere. This offer helps fuel the digital future of ESPN, laying the foundations for an even more robust offer while we are preparing to launch our new direct service to the consumer.”
The two parties must still negotiate a final agreement and receive the approval of the owners of the NFL. The agreement is subject to regulatory approval and no value has been provided.
The ESPN logo at the Super Bowl Lix Media Center at the Ernest N. Morial Convention Center. (Kirby Lee / Imagn Images / Imagn)
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One day after the announcement of the NFL, ESPN and WWE both announced that premium live events of the pro Wrestling (Wrestlemania, Summerslam, Royal Rumble, etc.) will be broadcast on the service from next year.
Landon Mion and Reuters of Fox Business contributed to this report.
