ESPN Laying Off Up To 300 Employees

Chris Racic Around The Clubhouse

Cost-cutting measures continue at the “Worldwide Leader In Sports”

The Big Lead is reporting that ESPN plans to layoff 200-300 employees in the near future.  The move is believed to be part of the directive Disney gave ESPN to cut $100 million from their budget in 2016 and $250 million in 2017.  The upcoming reduction in staff is expected to save $30-40 million annually.

The sports network has already let go of a string of high profile talent recently including Keith Olbermann, Bill Simmons, Jason Whitlock, and Colin Cowherd.  Lou Holtz, Mark Schlereth, and Bobby Knight have been permitted to simply walk away or agree to a diminished role.

The Two Main Factors Driving ESPN To Lower Costs

ESPN released a statement to The Big Lead:

“ESPN has historically embraced evolving technology to smartly navigate our business. Any organizational changes will be announced directly to our employees if and when appropriate.”

The ‘evolving technology’ is the rise of cord cutters, people dropping their massive cable TV bills and streaming content through the internet instead.  The number of cable TV subscribers is dropping.  Since 2011, the network has lost 7.2% of its households.

In addition to fewer people paying for ESPN, the cost of the rights to broadcast live sports is rising, quickly.  The new deal to broadcast pro basketball games has tripled the network’s costs to $1.47 billion per year.  The deal with the NBA, which also includes TNT, is reported to be 9 years/$24 billion.

Other money-conscious moves recently:

  • Halting a much publicized move for the “Mike & Mike” show to the Times Square studio Olbermann just vacated.  The studio is leased from Disney for $40 million.
  • More college basketball games will be announced from ESPN’s Bristol studio as opposed to live in the arena.

ESPN is currently paying the Big Ten $100 million per year for the rights to broadcast the conference’s football and basketball games and that deal will be up for renewal soon.  Games starting with the 2017-2018 season will most likely find a new home as well.

Update:  As football attendance and viewership has decreased in 2017, the ESPN Thursday night football (American Football for you Soccer fans) has increased.  Speaking of soccer, if you are looking for some great soccer resources, check out Soccer Gap today.

Chris Racic

Chris Racic lives and plays in NE Ohio. He works full time in the Financial Services industry and owns an absolutely horrendous short game. Chris chipped in for an eagle at Seven Hills Country Club in Hartville the day before his oldest daughter was born and is positive it’s some sort of sign.