A high-stakes agreement between the National Football League and Walt Disney Co. is expected to face regulatory hurdles as the U.S. Department of Justice (DOJ) prepares to review the deal, citing potential competition concerns.
Under the proposed arrangement, Disney’s ESPN would acquire the NFL Network and other media assets, while the NFL would receive a 10% equity stake in ESPN. The move expands ESPN’s sports programming and boosts its forthcoming streaming platform, but legal experts warn it could reduce competition and drive up consumer costs, News.Az reports, citing Reuters.
“This deal surely raises competition concerns,” said Andre P. Barlow, partner at Doyle, Barlow & Mazard. “It could give Disney even greater control over televised sports, limiting options and increasing prices for viewers.”
The DOJ is expected to conduct an in-depth review that could stretch up to 12 months, according to sources familiar with the matter. ESPN and the NFL have not commented on the review.
The scrutiny comes as sports broadcasting costs continue to rise, prompting concern from lawmakers. In May, the Senate Commerce Committee held a hearing to address fan frustrations over fragmented sports coverage across multiple streaming platforms.
“Millions of fans are asking a simple question: Why is it getting harder—and more expensive—to just watch the game?” said Senator Ted Cruz, who chairs the committee.
Consumer advocacy groups have echoed these concerns. John Bergmayer of Public Knowledge warned that the shift to streaming is recreating the cable bundle at a higher cost: “Some viewers feel like they finally broke free of the cable bundle, only to watch it re-form before their eyes.”
Despite these concerns, the NFL has reportedly met with 30 congressional offices to promote the deal as a way to increase consumer choice. Under the agreement, ESPN would integrate NFL Network into its offerings and merge its fantasy football services with the NFL’s. ESPN would also gain distribution rights for NFL RedZone across cable and satellite TV, while the NFL retains online streaming rights through YouTube TV.
The deal would alter ESPN’s ownership structure: Disney’s ABC Inc. would reduce its stake from 80% to 72%, and Hearst’s share would drop from 20% to 18%, allowing the NFL to acquire a 10% stake.
This isn’t the first time Disney has faced regulatory scrutiny. In 2018, the company’s $71 billion acquisition of 21st Century Fox’s entertainment assets was approved under the Trump administration, though Disney was required to divest Fox’s 22 regional sports networks to avoid antitrust issues.
Whether the current DOJ will move as swiftly remains uncertain—especially as political tensions and media-related lawsuits cloud the regulatory landscape. One notable case includes the $8.4 billion merger of Paramount Global and Skydance Media, which was delayed amid litigation involving former President Donald Trump and CBS.
As the DOJ review begins, all eyes are on how the government balances competition, media consolidation, and the changing dynamics of sports broadcasting.
