The NFL’s equity stake in Paramount and pending 10% stake in ESPN will not impact how the league thinks about distribution or utilizes its rights, a league executive said Tuesday.
NFL EVP/media distribution Hans Schroeder said in a conference call with reporters Tuesday that the league will maintain “an arm’s length” in future negotiations with partners in which it has an equity stake. “We’re going to make our best decisions when we get into that next phase and thinking about what those next cycle of deals look like … we’re going to separate and handle those type [of] dynamics at an arm’s length way, and I think we have great history of doing so across different parts of our business.”
Schroeder explained that the league has had equity in other areas of business over the years, including in some of its media partnerships, and that it knows how to operate in that regard, echoing statements made by CBS Sports president and CEO David Berson last month.
“Having stakes in different entities is not new for them,” Berson said. “They have Fanatics, they have SportsLine, and remember, NFL Network, they did that. People were worried, ‘How would that be?’ I think they proved that they can do deals at arm’s length, and I would anticipate it continues that way.”
The NFL became a shareholder in CBS parent company Paramount through its preexisting relationship with Skydance, which closed on its acquisition of Paramount last month. Per Berson, the equity stake the NFL holds in Paramount is “significantly less than what has been announced with ESPN.” As part of a non-binding agreement between ESPN and the NFL that still has to be approved by the federal government, the league is to take a 10% stake in ESPN.
The league is reportedly able to opt out of its media rights deal with The Walt Disney Company after the 2030 season, and it also has two years to exercise a change in control provision to renegotiate or exit its deal with Paramount Skydance.
There have been concerns about media outlets being able to remain objective in covering a league that is also a part owner. Schroeder addressed those Tuesday, saying that “the short and sweet answer to that is [ESPN will] be responsible for creating the content that runs on the assets that they’re buying, and so that’s something that we’re comfortable with and aware of.”
