ESPN Sells X Video games Controlling Stake to MSP Sports activities Capital

ESPN has offered a majority stake within the X Video games — its 27-year-old excessive sports activities occasion franchise — to private-equity agency MSP Sports activities Capital.

Monetary phrases of the deal weren’t disclosed. MSP will assume day-to-day operational management of the X Video games enterprise, which is able to spin off from ESPN. ESPN Productions Inc. will retain a minority, non-controlling stake in X Video games, and ESPN will proceed to function the U.S. linear broadcast accomplice as a part of a multiyear settlement inked at the side of the transaction.

“We’re happy with what we’ve created with our staff and the athletes over almost 30 years of world-class X Video games occasions and content material,” Jimmy Pitaro, chairman, ESPN and Sports activities Content material at Disney, mentioned in a press release. “We now stay up for an thrilling subsequent chapter with MSP Sports activities Capital, which has a confirmed monitor file of excellence in sports activities and a dynamic imaginative and prescient for the continued progress and development of the industry-leading motion sports activities model.”

With the deal to take over X Video games, MSP Sports activities Capital recruited Steven Flisler to be CEO of X Video games. Flisler most lately served as VP of unique content material at Twitch and govt producer of Twitch Rivals, streamer-vs.-streamer esports competitors collection, since 2018. He additionally held management positions at NBCUniversal for greater than a decade, producing dwell broadcasts throughout linear and streaming platforms.

Flisler, who formally begins Monday, Oct. 31, as X Video games’ CEO, mentioned in regards to the new gig, “It’s a possibility of a lifetime for me… It merges competitors, storytelling, expertise and innovation — it’s been what I’ve been chipping away in any respect my profession.”

Whereas ESPN and ABC will proceed to air the X Video games on conventional TV, the brand new X Video games firm has rights to chop new digital and streaming distribution offers beginning with X Video games Aspen 2023 from Jan. 27-29. Going ahead, X Video games will probably work with Twitch and YouTube on a free livestreaming distribution mannequin, in accordance with Flisler. “There’s an extremely sturdy legacy with the model, however the progress hasn’t been as aggressive because the model might be,” he mentioned. “There’s a youthful era hungry for content material like this.”

MSP Sports activities Capital CEO Jeff Moorad, who based the agency with Jahm Najafi, mentioned the corporate’s purpose is to reimagine the X Video games with distinctive fan experiences, an expanded calendar and elevated entry to the world’s premier athletes. “Inside ESPN, it was restricted when it comes to the pliability and progress potential, so I believe Disney and ESPN appropriately seemed for the subsequent steward of the model,” Moorad mentioned.

Tim Reed, ESPN’s VP of programming and acquisitions, has overseen the inventive improvement and day-to-day operations of the X Video games franchise since 2014. Reed will stay at ESPN and can “proceed to be a accomplice to us,” Flisler mentioned.

As well as, legendary professional skateboarder Tony Hawk will be a part of the X Video games investor group as a “model steward.” “Skateboarding is a part of my DNA and I help a neighborhood the place change and advances in motion sports activities is going on every day,” Hawk mentioned in a press release. “Being a part of the advisory board for X Video games is an extension of my a long time of competing and rather more forgiving to the physique, and I stay up for being continuously impressed by so many unbelievable athletes.”

ESPN based the X Video games in 1995, pioneering motion sports activities leisure by introducing audiences to televised competitions in snowboarding, snowboarding, Moto X, BMX freestyle, skateboarding and extra.

For New York-based MSP Sports activities Capital, the X Video games marks the sixth funding in its portfolio, which incorporates investments in McLaren Racing and 4 European soccer groups: Agrupación Deportiva Alcorcón (Spain), G.D. Estoril Praia (Portugal), FC Augsburg (Germany) and S.Ok. Beveren (Belgium).