x
x
x
x

Fri, August 11, 2023

Disney wants sports leagues to become partners in ESPN, but leagues aren’t convinced

Disney wants sports leagues to become partners in ESPN, but leagues aren’t convinced

Disney wants the four major US sports leagues to each have a stake in ESPN, but the leagues aren’t convinced by the plan.

Disney+ continues to lose money so the company is looking at ways in which they can save money, with $512 million lost in its most recent quarter. One way Disney hopes to save money is by having the leagues each have a stake in ESPN so that is does not have to pay out billions of dollars each season in broadcasting right as the leagues’ equity would replace this. 

Whilst Disney plans to utilise ESPN as a vessel for saving money the leagues are not yet convinced by the proposal given many teams pay their players in large part from the broadcasting rights fees. ESPN’s bids serve an essential role in how the leagues earn money. The organizations can generate competitive bids for packages of games because ESPN is almost always a potential buyer.

Disney has also moved into the US sports betting industry, tying its ESPN cable network to the casino and online gambling company Penn Entertainment in a $2bn deal. This deal is part of a wave of moves that Disney has made as it struggles to find its space in streaming.

The company has announced on Tuesday that PENN Entertainment will rebrand its current sportsbook and relaunch as ESPN BET, effective this autumn in the 16 legalized betting states where PENN Entertainment is licensed.

Sports betting is a relatively young industry in the US, in effect launching after a 2018 US Supreme Court ruling struck down a federal ban. Since then, 34 states and the District of Columbia have legalised the practice, according to the American Gaming Association, a trade group.

Share

Recent News Articles

Fri, July 12, 2024

European Anti-Doping Agencies call for increased testing of U.S. athletes

More than 30 European anti-doping agencies expressed concern in a letter seemingly directed at the United States, stating that professional and college athletes competing in major events, such as the upcoming Olympics, were not being sufficiently tested

Read More

Wed, July 10, 2024

IOC asked to ban Dutch beach volleyball player convicted of rape

Athlete advocacy groups urge the IOC to ban convicted child rapist Steven van de Velde from the Paris Olympics

Read More

Tue, July 09, 2024

Opportunity: Business Operations and Marketing Executive - Sport Resolutions

Sport Resolutions has an exciting opportunity for an enthusiastic individual to join the team as a Business Operations and Marketing Executive. 

Read More