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Warren and Sanders Press ESPN, NFL and MLB on Deals as Antitrust Scrutiny Builds

The lawmakers set an October 8 deadline for answers on pricing, competition and newsroom safeguards.

Overview

  • Senators Elizabeth Warren and Bernie Sanders, with Representatives Joaquin Castro and Pat Ryan, sent a letter to Disney, ESPN, the NFL and MLB warning the proposed arrangements could disadvantage rivals and raise costs for fans.
  • ESPN has announced a roughly $3 billion deal to acquire NFL Network, RedZone distribution rights and the league’s fantasy business, with the NFL set to receive a 10% equity stake in ESPN.
  • The letter flags ESPN’s reported agreement in principle to fold MLB.TV into its new streaming service and asks whether MLB.TV will remain available as a standalone product and if add-on fees will be required.
  • The Justice Department is reportedly preparing a substantive review of the NFL-ESPN agreement, and spokespeople for ESPN, the NFL and MLB declined to comment to reporters.
  • Lawmakers cite risks to editorial independence and potential preferential treatment between the NFL and ESPN, and they seek explanations on issues including the addition of commercials to RedZone.