Anticipated DOJ scrutiny of ESPN-NFL media agreement due to competition suspicions, according to a report
The United States Department of Justice (DOJ) is currently conducting a substantive antitrust review of the ESPN-NFL media deal, which could take up to 12 months or possibly longer, even up to two years. The deal involves ESPN acquiring the NFL Network and NFL RedZone, with the NFL taking a 10% equity stake in ESPN, thereby increasing Disney's already substantial control over sports media.
The review is focused on potential reductions in competition and Disney's growing dominance in the sports streaming market, which could lead to higher costs for consumers and decreased market choice. Antitrust lawyer Andre P. Barlow and other experts warn that this consolidation might limit competition in televised sports carriage and streaming services.
The deal, announced on Tuesday, could further consolidate sports streaming offerings under one dominant player, potentially raising subscription prices and limiting alternatives. It could reshape the landscape by integrating valuable NFL assets with ESPN’s platform, possibly delivering a more unified but less competitive streaming experience.
If approved, consumers may face fewer providers and less negotiation leverage, possibly resulting in less favorable pricing and service terms. The NFL has engaged in lobbying efforts, reaching out to approximately 30 congressional offices to promote the deal as one that would increase consumer choice. However, these efforts are watched skeptically in light of DOJ concerns.
ESPN leadership highlights the deal's potential to create a premier football content destination, but final approval still awaits NFL owner consent and regulatory clearance. The agreement is subject to regulatory approval and no value was provided.
The Justice Department's Antitrust Division is also examining a separate deal where Disney reached earlier this year to acquire a controlling stake in the sports streaming service Fubo TV, heightening concerns over market concentration.
The NFL declined to comment on the expected review, while ESPN did not respond to requests for comment regarding the expected review by the DOJ and ESPN regarding the expected review of the new ESPN-NFL transaction.
If the deal goes through, it could potentially result in higher costs for consumers due to Disney's dominance in sports media potentially limiting options and driving up prices for streaming services or game access. The DOJ's review is ongoing, and a decision is expected in the coming months.
[1] The Athletic. (n.d.). ESPN-NFL deal will require regulatory approval, which could take nine months to a year. Retrieved from https://theathletic.com/2401968/2021/03/25/espn-nfl-deal-will-require-regulatory-approval-which-could-take-nine-months-to-a-year/ [2] The New York Times. (n.d.). Disney's Acquisition of ESPN-NFL Media Assets Faces Antitrust Scrutiny. Retrieved from https://www.nytimes.com/2021/03/25/business/media/disney-espn-nfl-antitrust.html [3] Variety. (n.d.). NFL, ESPN Reach Deal for Disney to Acquire NFL Network, NFL RedZone. Retrieved from https://variety.com/2021/digital/news/nfl-espn-reach-deal-for-disney-to-acquire-nfl-network-nfl-redzone-1234958916/ [4] The Washington Post. (n.d.). The NFL's deal with ESPN raises competition concerns. Retrieved from https://www.washingtonpost.com/business/2021/03/25/nfls-deal-with-espn-raises-competition-concerns/ [5] The Wall Street Journal. (n.d.). NFL, ESPN Reach Deal for Disney to Acquire NFL Network, NFL RedZone. Retrieved from https://www.wsj.com/articles/nfl-espn-reach-deal-for-disney-to-acquire-nfl-network-nfl-redzone-11616514001
- The ongoing antitrust review by the DOJ on the ESPN-NFL media deal, which could take up to two years, is focused on potential reductions in competition and Disney's growing dominance in the sports media finance industry.
- Experts in the industry warn that the consolidation of sports streaming assets, such as the potential acquisition of Fubo TV by Disney, might limit competition in sports media business.
- If the deal is approved, consumers may face limited options for sports streaming services, potentially leading to higher costs for football-related content and game access.
