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ESPN Sells Controlling Stake in X Games to MSP Sports Capital, Which Wants to Expand Digital Livestreaming of Events
ESPN has sold a majority stake in the X Games — its 27-year-old extreme sports event franchise — to private-equity firm MSP Sports Capital.
Financial terms of the deal were not disclosed. MSP will assume day-to-day operational control of the X Games business, which will spin off from ESPN. ESPN Productions Inc. will retain a minority, non-controlling stake in X Games, and ESPN will continue to serve as the U.S. linear broadcast partner as part of a multiyear agreement inked in conjunction with the transaction.
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“We’re proud of what we’ve created with our employees and the athletes over nearly 30 years of world-class X Games events and content,” Jimmy Pitaro, chairman, ESPN and Sports Content at Disney, said in a statement. “We now look forward to an exciting next chapter with MSP Sports Capital, which has a proven track record of excellence in sports and a dynamic vision for the continued growth and progression of the industry-leading action sports brand.”
With the deal to take over X Games, MSP Sports Capital recruited Steven Flisler to be CEO of X Games. Flisler most recently served as VP of original content at Twitch and executive producer of Twitch Rivals, streamer-vs.-streamer esports competition series, since 2018. He also held leadership positions at NBCUniversal for more than a decade, producing live broadcasts across linear and streaming platforms.
Flisler, who officially starts Monday, Oct. 31, as X Games’ CEO, said about the new gig, “It’s an opportunity of a lifetime for me… It merges competition, storytelling, technology and innovation — it’s been what I’ve been chipping away at all my career.”
While ESPN and ABC will continue to air the X Games on traditional TV, the new X Games company has rights to cut new digital and streaming distribution deals starting with X Games Aspen 2023 from Jan. 27-29. Going forward, X Games will likely work with Twitch and YouTube on a free livestreaming distribution model, according to Flisler. “There’s an incredibly strong legacy with the brand, but the growth hasn’t been as aggressive as the brand could be,” he said. “There’s a younger generation hungry for content like this.”
MSP Sports Capital CEO Jeff Moorad, who founded the firm with Jahm Najafi, said the company’s goal is to reimagine the X Games with unique fan experiences, an expanded calendar and increased access to the world’s premier athletes. “Inside ESPN, it was limited in terms of the flexibility and growth potential, so I think Disney and ESPN appropriately looked for the next steward of the brand,” Moorad said.
Tim Reed, ESPN’s VP of programming and acquisitions, has overseen the creative development and day-to-day operations of the X Games franchise since 2014. Reed will remain at ESPN and will “continue to be a partner to us,” Flisler said.
In addition, legendary pro skateboarder Tony Hawk will join the X Games investor group as a “brand steward.” “Skateboarding is part of my DNA and I support a community where change and advances in action sports is happening on a daily basis,” Hawk said in a statement. “Being part of the advisory board for X Games is an extension of my decades of competing and much more forgiving to the body, and I look forward to being constantly inspired by so many incredible athletes.”
ESPN founded the X Games in 1994 (with the first season taking place in 1995), pioneering action sports entertainment by introducing audiences to televised competitions in skiing, snowboarding, Moto X, BMX freestyle, skateboarding and more.
For New York-based MSP Sports Capital, the X Games marks the sixth investment in its portfolio, which includes investments in McLaren Racing and four European soccer teams: Agrupación Deportiva Alcorcón (Spain), G.D. Estoril Praia (Portugal), FC Augsburg (Germany) and S.K. Beveren (Belgium).
Pictured above: Tony Hawk at the 2015 X Games Austin
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