Partnering with sports leagues on ESPN may make sense for Disney, but it's not yet clear it makes sense for the leagues.
Representatives of the National Basketball Association and Major League Baseball have questioned the logic of taking a minority stake in ESPN if Disney's goal is to replace cash payments for league rights with equity, sources said.
The National Basketball Association and Major League Baseball have both questioned a partnership with ESPN if Disney's goal is to mitigate or replace payments to leagues for sports broadcast rights with equity in ESPN, according to people familiar with the talks. Disney CEO Bob Iger said during Disney's earnings conference call Wednesday that the company is "not necessarily looking for cash infusion" if partners could provide other assets — such as content — as the company transitions ESPN to a direct-to-consumer business. Sources say Disney is targeting 2025 as a potential launch date for an unbundled-from-cable ESPN streaming service.
An MLB spokesperson declined to comment. An NBA spokesperson said, "we have a longstanding relationship with Disney and look forward to continuing the discussions around the future of our partnership."Iger reiterated Wednesday that he wants to keep a majority ownership stake in ESPN. Iger told CNBC's David Faber last month that Disney is "not necessarily" looking at spinning off ESPN.
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