tuesday evening

NFL takes 10% stake in Disney’s ESPN, which will take over NFL Network

The NFL has reached a deal to take a 10% ownership stake in the Walt Disney Co.’s ESPN, the league and Disney announced Tuesday evening, a move that is expected to solidify the sports media outlet’s relationship with the league for years to come.

In return for the equity stake valued at more than $2 billion based on recent valuations of the company, ESPN will take over the NFL’s cable properties including the NFL Network and Red Zone, the popular channel that continuously updates fans on the slate of Sunday contests. The NFL Network also has the rights to seven regular season games.

In addition to the sale of NFL Network, the NFL and ESPN are also entering into a second non-binding agreement, under which the NFL will license to ESPN certain NFL content and other intellectual property to be used by NFL Network and other assets.

The deal is a big win for ESPN Chairman Jimmy Pitaro, who took over the Disney unit in 2018 with a mandate to improve the company’s relationship with the NFL.

The equity stake comes ahead of ESPN’s move into the direct-to-consumer streaming business this fall, which gives consumers the opportunity to purchase the company’s sports channels without a cable or satellite TV subscription. NFL Network will also be available on the streaming service.

“This is an exciting day for sports fans,” Pitaro said Tuesday in a statement. “By combining these NFL media assets with ESPN’s reach and innovation, we’re creating a premier destination for football fans. Together, ESPN and the NFL are redefining how fans engage with the game — anytime, anywhere. This deal helps fuel ESPN’s digital future, laying the foundation for an even more robust offering as we prepare to launch our new direct-to-consumer service.”

The new product is aimed at recapturing sports fans who are forgoing cable and satellite services. ESPN has seen its reach in cable decline from 98 million homes in 2013 to around 72 million as a result of cord-cutting.

“Today’s announcement paves the way for the world’s leading sports media brand and America’s most popular sport to deliver an even more compelling experience for NFL fans, in a way that only ESPN and Disney can,” Disney Chief Executive Bob Iger said in a statement.

ESPN has the broadcast rights to “Monday Night Football” and two Super Bowl games in the current NFL contract that runs through 2033 but is expected to be reopened in 2029.

The deal with Disney means the NFL’s other partners — Fox, NBC, CBS, YouTube and Amazon — will be bidding against an entity that the league has a financial interest in next time the media rights come up.

Lachlan Murdoch, executive chairman of Fox Corp., told Wall Street analysts Tuesday he is not concerned the NFL’s partnership with ESPN will impact his network’s standing with the league.

“We have a tremendous relationship with the NFL,” Murdoch said. “We appreciate that they are fans of the broadcast and cable networks, and we look forward to working with them and deepening our relationship with them as we move forward.”

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California Congress members to question Hegseth about military in L.A.

California Democrats plan to question Defense Secretary Pete Hegseth on Thursday about the immigration raids that have roiled Los Angeles, the federal commandeering of the state’s National Guard and the deployment of Marines in the region when he testifies before the House Armed Services Committee.

Several committee members said they received no advance notice about the federal immigration sweeps at workplaces and other locations that started Friday and that prompted large and at times fiery protests in downtown Los Angeles.

“That’s going to change,” said Rep. Derek Tran (D-Orange), when the committee questions Hegseth on Thursday morning.

“We need to de-escalate the situation,” Tran said in an interview. President Trump and his administration’s moves, most recently deploying hundreds of Marines in Southern California, “escalates the situation, sending in troops that shouldn’t be there, that are trained to shoot and kill.”

Though largely peaceful, protests about U.S. Immigration and Customs Enforcement’s actions have been punctuated by incidents of violence and lawlessness. As of Tuesday evening, several hundred people had been detained on suspicion of crimes or because of their immigration status.

After dissenters blocked the 101 Freeway, vandalized buildings in downtown Los Angeles and stole from businesses, Los Angeles Mayor Karen Bass on Tuesday imposed a curfew in the city’s civic core from 8 p.m. to 6 a.m.

Thursday’s testimony before the House Armed Services Committee will be Hegseth’s third appearance on Capitol Hill this week. He was questioned Tuesday by the House Appropriations subcommittee on defense and the Senate Appropriations Committee on Wednesday.

Both appearances were testy. On Wednesday, Hegseth insisted the deployment of Marines in Los Angeles was lawful but couldn’t name the law under which it is allowed. On Tuesday, he was buffeted with questions about the “chaos” in his tenure, his discussion of national secrets on a Signal group chat and the lack of information provided to elected leaders about Defense Department operations and budgets, including the cost of the federal deployment in Los Angeles.

“I want your plan!” Rep. Rosa DeLauro (D-Conn.) demanded. “What is your plan for the future? Can we get that in writing and on paper so that we know where you’re going? Because we don’t have anything today. We have zip! Nada!”

Hegseth responded that the agency has the details and would provide them to members of Congress. The Pentagon posted a video clip of the back-and-forth on X that tagged the congresswoman and was titled “WHY ARE YOU SCREAMING!”

Thursday’s hearing is especially notable because the committee oversees the Pentagon budget. None of the Republican members of the committee are from California. More than a dozen who were asked to weigh in on the hearing didn’t respond.

Republicans are expected to reflect the sentiments expressed by Trump, most recently on Wednesday when he took questions from reporters on the red carpet at the Kennedy Center shortly before attending a performance of “Les Miserables” with First Lady Melania Trump.

“We are going to have law and order in our country,” he said. “If I didn’t act quickly on that, Los Angeles would be burning to the ground right now.”

“These are radical left lunatics that you’re dealing with, and they’re tough, they’re smart, they’re probably paid, many of them, as you know, they’re professionals,” he added. “When you see them chopping up concrete because the bricks got captured, they’re chopping up concrete and they’re using that as a weapon. That’s pretty bad.”

Seven of the committee’s members are Democrats from California, and they are expected to press Hegseth on the legal underpinnings of the deployment of federal forces in the state, the lack of notification or coordination with state and local officials and the conditions and future of residents swept up in the raids.

“The president’s decision to deploy the National Guard and the U.S. Marines over the objections of California officials has escalated the situation, creating unnecessary chaos and putting public safety at risk,” said Rep. George Whitesides (D-Agua Dulce). “As a member of the House Armed Services Committee, I’m deeply concerned with the precedent this sets, and the apparent lack of protocol followed, and I will be seeking answers.”

Rep. Salud Carbajal (D-Santa Barbara), a Mexican immigrant who served in the Marine Corps Reserve and is also a member of the committee, said Trump is doing what he does best.

“He likes to play arsonist and firefighter,” Carbajal said in an interview.

He argued Trump is using the raids to deflect attention from legislation that will harm the most vulnerable Americans while enriching the wealthy.

“There’s a question of whether what he’s doing is legal, regarding him and Hegseth sending in Marines. The governor and the mayor did not request the National Guard, let alone the Marines,” Carbajal said. “This is likely a violation of the Posse Comitatus Act, which prohibits the use of U.S. forces in the U.S.”

Carbajal also said he expects what has unfolded in Los Angeles in recent days to be replicated in communities nationwide, a concern raised by Bass and other Democrats on Wednesday.

As a former Marine, Carbajal added that he and his fellow veterans had no role to play domestically, barring crisis.

“We’re not trained for this. There is no role for Marines on American soil unless rebellion is happening,” he said. “This is so ridiculous. It says a lot about the administration and what it’s willing to do to distract and create a more stressful, volatile environment.”

“Let’s make it clear,” he added. “We Democrats don’t support any violent protests. But as a Marine, there is no place for the U.S. military on domestic soil under the guise and reasoning he’s provided.”

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