NFL-Disney Deal Expected to Face DOJ Scrutiny Over Antitrust Concerns

Revealed on Tuesday, the deal would see Disney’s ESPN acquire the NFL Network and other affiliated assets, further expanding the network’s already substantial grip on televised sports content. In return, the NFL would gain an ownership foothold in one of the most influential sports broadcasters in the country.

Legal analysts have flagged potential regulatory hurdles. Andre P. Barlow, an antitrust attorney with Doyle, Barlow & Mazard, noted to Reuters that the deal “surely raises competition concerns,” warning that it could limit consumer options and inflate prices for sports fans by strengthening Disney’s position in the streaming and sports media markets.

“The deal could potentially result in higher costs for consumers,” Barlow said, referencing the growing dominance of Disney in the sports broadcasting sector.

According to Reuters, the U.S. Department of Justice is expected to conduct a thorough antitrust review of the transaction. One anonymous source indicated that the approval process could stretch for up to a year. This review comes amid a broader examination by the DOJ into another Disney deal — the company’s attempt to acquire a controlling stake in Fubo TV, a sports streaming platform. In that case, the Justice Department requested additional information earlier this year, a sign that regulators are increasingly focused on consolidation in the digital sports market.

The rise of streaming as a dominant platform for sports has not gone unnoticed in Washington. Lawmakers have been probing the impact of such deals on consumers, particularly as fans face rising subscription costs and fragmented access to games. During a Senate Commerce Committee hearing in May, Senator Ted Cruz of Texas lamented the growing complexity and expense of simply watching a game. “Why does it seem to be getting harder — and more expensive — to just watch the game?” he asked.

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Public interest groups share similar concerns. John Bergmayer, legal director at Public Knowledge, testified that viewers are feeling the effects of content spread across multiple platforms. “Some viewers feel like they finally broke free of the cable bundle only to watch it re-forming before their eyes,” he said, per Reuters.

Despite the scrutiny, the NFL has proactively briefed lawmakers. According to one source, the league has approached around 30 congressional offices to discuss the deal, portraying it as a move that would expand consumer choice. Under the proposed arrangement, ESPN would integrate the NFL Network into its programming slate, including its streaming service. ESPN also plans to consolidate its fantasy football platform with that of the NFL and distribute the NFL’s RedZone channel alongside its existing broadcast offerings. However, the league will retain streaming rights to RedZone via platforms like YouTube TV.

This isn’t the first time Disney has faced intense regulatory review. Its $71 billion purchase of 21st Century Fox’s entertainment assets in 2018 swiftly cleared antitrust hurdles under the Trump administration, though Disney was required to divest regional sports networks to address competition concerns. Barlow told Reuters that this time around, the process might not be so smooth. “I expect the Justice Department to take a close look before approving the deal,” he said.

Political entanglements could also complicate matters. Reuters reports that former President Donald Trump previously intervened in sports-related business dealings, including publicly opposing a proposed NFL stadium project unless the Washington Commanders reverted to their former team name — a moniker retired amid racial sensitivity debates.