NFL and ESPN reach nonbinding agreement for sale of NFL Network and other media assets

Ever since the NFL announced it was looking to sell NFL Network and other media assets, ESPN had been seen as one of the favourites 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 per cent 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.

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 US 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