The National Football League (NFL) is holding preliminary discussions with Skydance Media and one of its investors, RedBird Capital Partners, that could involve the sale of NFL Media, according to a report published this week.
On Thursday, financial news outlet Bloomberg revealed the discussions between the parties, which could see Skydance and RedBird Capital acquiring some of the league’s media and television properties, including the cable channel NFL Network.
One point being discussed amongst the parties is the possibility of Paramount Global acquiring the NFL’s stake in Skydance Sports, a production company that has partnered with the league on sports-related documentaries and other programming.
Paramount and the NFL already have a long-term relationship that includes regular-season and post-season telecasts of NFL games, as well as the championship Super Bowl game on a rotating basis with Fox Corporation, Comcast’s NBC Universal and the Walt Disney Company’s ABC and ESPN. Paramount is in the process of merging with Skydance, a transaction that is expected to close next year, pending regulatory approval.
According to Bloomberg, the NFL’s long-term contract with Paramount allows it to seek another media partner through a “change of control” clause. The merger with Skydance could trigger that condition, the news outlet reported, citing people familiar with the matter.
The league’s contract with Paramount and CBS runs through the 2032-33 season. While a triggering of the clause could allow the NFL to seek another broadcast partner, Bloomberg said it was unlikely the league would replace CBS. However, the clause has “prompted a wider conversation about business opportunities between the league, Skydance and RedBird,” the news outlet said.
The NFL is not unfamiliar with Redbird Capital, having partnered with the investment firm on EverPass Media, a technology company that provides live sports streams to commercial establishments in the United States.
The report reignited speculation that the NFL wants to part with its media business, which includes NFL Network and the whip-around Sunday morning and afternoon football channel NL RedZone. Earlier, news outlets reported that the NFL was pursuing a deal with Disney that would merge NFL Media with ESPN, while giving ESPN a stake in the league. Bloomberg said those discussions have stalled.
