ESPN’s deal to buy NFL Network and other assets is expected to face questions from the Government.
The Walt Disney-owned company announced the acquisition this week with the NFL receiving equity in exchange.
The NFL’s deal with ESPN could face scrutiny from the Department of Justice. Pictured are NFL commissioner Roger Goodell and President Donald Trump[/caption]
ESPN purchased NFL Network, NFL Red Zone and other assets in exchange for equity[/caption]
According to Reuters, the deal will likely come under scrutiny from the US Department of Justice.
An anonymous source was quoted in the report while ESPN and the NFL declined to comment.
Another source that was quoted said it takes up to 12 months to obtain US antitrust clearance.
“The deal could potentially result in higher costs for consumers,” lawyer Andre P. Barlow said.
“Disney’s dominance in sports media could limit options and drive up prices for streaming services or game access.”
The legal expert also said the ESPN-NFL deal “surely raises competition concerns.”
Throughout the offseason, the NFL and ESPN have been in heavy talks about a major deal.
It was reported last month that the two juggernauts were “inside the five-yard line” in their negotiations.
The deal gives ESPN access to RedZone, NFL Network, and three more regular-season games.
ESPN also receives the league’s fantasy football operation while the NFL keeps control of NFL Films and NFL.com.
NFL Network began in 2003 and has been a competitor to ESPN.
But the NFL Network has found it hard to be an alternative to ESPN, which focuses more on the NFL than any other sport.
The exact nature of the changes is not fully clear.
Commissioner Roger Goodell appeared on SportsCenter this week to reassure fans there would be no change to NFL Red Zone’s current format.
“Red Zone will stay the same,” he said.
“It will continue to be produced in this building,” Goodell added as he spoke from the NFL’s office in Inglewood, California.
“I don’t think fans will see any different.
“ESPN purchased the Red Zone name and they will be able to utilize that for other sports.
“College football and other things and I think that could be an exciting thing for our fans to see a Red Zone in college football or other sports.
“That’s something ESPN now own and have the ability to do that, but as far as NFL Red Zone, there won’t be any changes for our fans.”
