Major changes are incoming for ESPN, and the entire sports world is bracing for what’s to come.
George Pyne, CEO of Bruin Capital, a private equity firm focused on sports-related properties, spoke on Squawk Box on Monday, July 24, and gave his thoughts on Bob Iger’s statements earlier this month that The Walt Disney Co - (DIS) -) sports network is looking for strategic partners.
Pyne said that Iger’s going to have to “readjust and make some new bets” with ESPN given the media landscape’s pivot to streaming.
“Like anybody else, he’s got to pivot,” Pyne said. “I pivot to capital partners, I pivot to people who can provide new content and distribution. And the NFL, NBA, and Major League Baseball provide content and distribution for a new streaming world and you got to look at that as well as other distribution partners."
DON’T MISS: ESPN Is Exploring a Unique Partnership With NBA and NFL, Report Says
CNBC reported on Friday, July 21 that ESPN may look to provide equity opportunity to sports leagues like the NBA, NFL, and MLB in order to help with distribution. While ESPN is already in partnership with these leagues for broadcasting, becoming equity partners presents a challenge especially if the leagues look to maintain rights deals with other broadcasters.
But Pyne thinks there’s still a chance the deals could happen.
“There may be a narrow application where there’s an equity opportunity,” Pyne said. “They’re going to want to save the optionality from a general licensing standpoint.”
More ESPN:
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- ESPN Layoffs: Prominent On-Air Talents Among The Network's 20-Person Staff Reduction
ESPN has huge deals with all three major sports leagues that include broadcasting NFL’s “Monday Night Football,” The MLB All-Star Game, and The NBA Finals, which also airs on ABC.
