An update on Disney’s pursuit of a strategic partnership for ESPN. Plus: NASCAR rights deal behind schedule, but still in good shape; Bally Sports Arizona drops the Coyotes, shuts down.
Disney seeks digital, telecom combo for ESPN strategic partnership
Per a report in the New York Post, ESPN would like to bring on two strategic partners: one a digital company like Apple, and another a telecom company like Verizon. These companies are not the only potential players per the report, however they provide the wide distribution capabilities and ubiquity that ESPN seeks. Other companies mentioned as potential partners were Amazon, Microsoft, Google, and T-Mobile.
A strategic partnership with a major tech company would prove beneficial for ESPN as it moves towards bringing its linear channels direct-to-consumer by 2026, though it’s unclear how these companies would value ESPN as an asset. Disney would reportedly like to sell only 10% of ESPN, but that number remains fluid. (NY Post, 10.16)
NASCAR deal sits unfinished
NASCAR, which expected to finish a new media rights agreement this summer, is still negotiating with incumbents FOX and NBC to complete a deal per Sports Business Journal. Earlier this year, NASCAR completed a $115m deal with The CW for its second-tier Xfinity Series races, but still awaits a finalized deal for its flagship circuit.
According to the report, “negotiations are going smoothly.” FOX and NBC are looking to renew at a slightly increased rate over the current deal. In order to juice its media rights revenue a bit more, NASCAR has carved out a package of six races that Amazon and Turner have showed interest in. NASCAR executives would not speculate as to when the new set of deals could be completed. (SBJ, 10.16)
Bally Sports Arizona shuts down
Bally Sports Arizona has ceased operations after mutually parting ways with the Arizona Coyotes, the last franchise to which it held rights. Two weeks ago, the Coyotes agreed to a deal with Scripps Sports to air games on over-the-air broadcast television, similar to the Phoenix Suns and Mercury deal with Gray Television earlier this year. The Arizona Diamondbacks had their rights reverted back to Major League Baseball after Bally stopped its rights payments to the team.
The shuttering of Bally Sports Arizona comes amidst the ongoing bankruptcy procedures of parent company Diamond Sports Group, who has ceased rights payments to several franchises since filing for bankruptcy earlier this year. Phoenix will now be the largest media market without a regional sports network. (Bally Sports Arizona 10.13)
