Basic cable channel ESPN (Entertainment and Sports Programming Network) is reportedly in talks with three of the major sports leagues in the United States for a strategic partnership, which could see the NFL, NBA, and MLB acquire minority ownership stakes in the sports network.
Disney CEO Bob Iger previously stated that an entire sale of the network was off the cards, but he did confirm that the network is discussing strategic partnerships as part of its plan to transition its flagship product from cable television to a direct-to-consumer streaming model by 2025 or 2026.
"We're going to be open-minded about looking for strategic partners that could either help us with distribution or content. I'm not going to get too detailed about it, but we're bullish about sports as a media property, the 72-year-old executive said.
ESPN is primarily owned by The Walt Disney Company, which holds an 80-percent stake and operational control of the network. Media conglomerate Hearst Communications owns the remaining 20 percent.
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What does it mean for sports leagues?
ESPN could be looking to partner with the sports leagues to acquire rights and a plethora of sports content in time for their move to streaming.
Meanwhile, the leagues could create the streaming avenue by themselves and keep a larger portion of the revenue; that's why ESPN offers ownership stakes to persuade them to be a part of something much bigger.
The NFL and MLB declined to speak on the matter.
Meanwhile, the NBA said, "We have a longstanding relationship with Disney and look forward to continuing the discussions around the future of our partnership."
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