After today's cuts, is ESPN going to adjust their business model?

[PatsFan1283]

I agree with you it is a big # but look at the big picture. You sell the MNF for 2/3rds of that 1.9 (this seems like a worst case scenario type deal), that is still 1.3B which in grand scheme is what, a 4% cut in total NFL revenue? NFL took in 13B total last year in revenue. And that is a pretty big contraction for an example.

And your making some big assumptions that newer options won't come avail by 2021 (Amazon, Netflix, Google) to bid for these rights. I think you're trying to predict something that is a little far into the future. Who knows what the NFL can get from online streaming in a few years.

Agree with you that they should probably downsize in many major ways.

As much press as this story is getting, the end result really is just that the Ryan Clark's, Danny Kanell's, Stephen A Smiths, Michael Wilbon's, etc just won't make as much $ for saying nothing. Execs in LA/NY will make less.

Maybe some of that trickles down to the NBA and Kent Bazemore's of the world can't make 17M per anymore. Tough to say.

But this is hardly the subprime mortage bust as far as corrections go. Sports teams are regional monopolies and unless a massive recession hits, they're sitting in a pretty good spot.


edit: Could it contract in 5-7 years? Possibly but I think that is harder to predict than you do. Like I said, you got overseas revenue and online streaming. Hell, once they take a huge cut they probably just legalize sports betting.

 

[PatsFan1283]

Also, I've ragged on the Chauncey Billups types a bit much in this thread. I'm sure he is smarter than he appears on TV but they probably don't allow you to go too in depth because they know that they are marketing their sport to mostly casual fans and they don't wanna hear you talk about X's and O's.

Dominick Cruz does UFC commentary for FS1 and he really breaks it down. But I think that is cause they know MMA is a niche sport and the fan base is more devoted, they understand what he is saying. He's a really smart guy but if someone were analyzing football or basketball or baseball like that then you probably just aren't going to capture the largest potential audience. Dramatic storylines is what does that.

 

[CHOPTALK]

I agree with you it is a big # but look at the big picture. You sell the MNF for 2/3rds of that 1.9 (this seems like a worst case scenario type deal), that is still 1.3B which in grand scheme is what, a 4% cut in total NFL revenue? NFL took in 13B total last year in revenue. And that is a pretty big contraction for an example.

And your making some big assumptions that newer options won't come avail by 2021 (Amazon, Netflix, Google) to bid for these rights. I think you're trying to predict something that is a little far into the future. Who knows what the NFL can get from online streaming in a few years.

Agree with you that they should probably downsize in many major ways.

As much press as this story is getting, the end result really is just that the Ryan Clark's, Danny Kanell's, Stephen A Smiths, Michael Wilbon's, etc just won't make as much $ for saying nothing. Execs in LA/NY will make less.

Maybe some of that trickles down to the NBA and Kent Bazemore's of the world can't make 17M per anymore. Tough to say.

But this is hardly the subprime mortage bust as far as corrections go. Sports teams are regional monopolies and unless a massive recession hits, they're sitting in a pretty good spot.


edit: Could it contract in 5-7 years? Possibly but I think that is harder to predict than you do. Like I said, you got overseas revenue and online streaming. Hell, once they take a huge cut they probably just legalize sports betting.

Good points about future revenue streams .
based on what twitter and amazon have shown they are willing to fork over for streaming content that is not even exclusive to their customer base make a pretty bullish case that loss of network revenue can possibility be made up in other areas.

I did not want to come off as doom and gloom as I sounded on the future of the NFL and the NBA .

Bottom line is I hate to see people lose jobs but none of the layoffs will reduce my viewership of ESPN by even 1%.

It will be interesting to see what the future holds for broadcasting rights.

Another thing to consider is the fact that cutting out talking heads for fluff programming does not automatically mean live broadcast rights will be reduced.

Who knows maybe they will increase .

Live sports programming is at a premium right now like never before .

Its the least affected type of programming still in existence today.
You can't really fast forward the commercials .

You can't binge watch it.

Its one of the few things out there that you still have to actually plan to watch.

 

[EveryGamblersDream]

ESPN is too busy with programming leaning towards a leftist liberal agenda & that has never equaled ratings on TV or radio. Look at the networks that lean that way in both formats & see how the leaders are the ones that are the opposite of that. Liberals don't equal ratings as they are too busy on social media whining & being triggered by any little thing.

 

[gtc08]

Politics has nothing to do with it. The sport TV Contracts and the declining number of cable subscribers is what's killing there bottom line.

 

[Enfuego]

Has nothing to do with politics .
I don't understand why some people have such a hard time realizing that.

Rush Limbaugh and Glenn Beck could be the main sports center host and it would have been the same situation as today.


What people are not talking about right now and it's about to be huge news is what this is about to do to the NFL and NBA.

There is going to be some major salary cap retractions in those sports .

The NFL and NBA is gonna hurt folks.

You gonna see pay in both sports take a major hair cut.

MLB is not going to be affected near as much as the NFL and NBA.

Baseball does not depend on national tv rights near as much as the other 2 sports.

Baseball gets its money from regional television rights and the attendance gates are a much bigger part of the revenue pie in baseball then the other sports.


Thats the real story that's about to be told.

This is just the first domino .

There is no way the NFL and NBA will be able to demand the money money they've been getting

This just isn't correct.

ESPN is losing viewers at an astronomical rate. This year alone, ESPN's ratings are down 7% while ESPN 2's ratings are down 34%. People just aren't tuning in anymore. Why aren't they tuning in? Awhile back, ESPN execs saw declining ratings and decided to make a change. They decided to get into politics and they were wrong. It was a terrible decision.

In addition, they pay too much for broadcasting rights and less people are watching satellite. They are losing subscribers at an astronomical rate. All of these things factor in.

How do you explain their declining ratings and how can you say their political innuendo has nothing to do with those declining ratings?

 

[Enfuego]

I'm sorry, ratings are down 16% this year not 7%.

 

[Enfuego]

Politics has nothing to do with it. The sport TV Contracts and the declining number of cable subscribers is what's killing there bottom line.

In a March poll of sports media consumers, 60% of respondents responded they felt ESPN leaned too far left.

 

[beefdiesel]

Most sports fans don't want to hear liberal politics spewed, I only watch live sports on espn and that's it

 

[beefdiesel]

ESPN is too busy with programming leaning towards a leftist liberal agenda & that has never equaled ratings on TV or radio. Look at the networks that lean that way in both formats & see how the leaders are the ones that are the opposite of that. Liberals don't equal ratings as they are too busy on social media whining & being triggered by any little thing.

Spowflakes are too busy playing video games and Netflix to watch sports. All the millennials have cut the cord too, I'm a 41 year old satellite, Directv for Sunday ticket guy so I watch espn, only for live sports now because their left leaning

 

[rolltide]

Politics has nothing to do with it. The sport TV Contracts and the declining number of cable subscribers is what's killing there bottom line.

if that was true, which it's not, most or all other cable channels would be losing money and subscribers at the same pace. ESPN's bigger issue is the astronomical rights fees they have paid for a whole lot of shitty games. Try watching Doris Burke call a Big10 football game or attempt to watch any of the 200 girls college softball or hoops games that are on each week. go ahead, i dare ya ....

poor business decisions are the biggest reasons for their demise but most of "fly over America" isn't interested in tuning into a channel giving a gay football player or a tranny the Arthur Ashe Courage Award that was reserved for people like Mandela, Ali, Cosell, and Pat Tillman. You want courage? Steve Gleason is courage not Bruce Jenner

politics plays a big role in why their viewer ratings are suffering far worse than other cable channels...

 

[StevieRay]

Has nothing to do with politics .
I don't understand why some people have such a hard time realizing that.

Rush Limbaugh and Glenn Beck could be the main sports center host and it would have been the same situation as today.


What people are not talking about right now and it's about to be huge news is what this is about to do to the NFL and NBA.

There is going to be some major salary cap retractions in those sports .

The NFL and NBA is gonna hurt folks.

You gonna see pay in both sports take a major hair cut.

MLB is not going to be affected near as much as the NFL and NBA.

Baseball does not depend on national tv rights near as much as the other 2 sports.

Baseball gets its money from regional television rights and the attendance gates are a much bigger part of the revenue pie in baseball then the other sports.


Thats the real story that's about to be told.

This is just the first domino .

There is no way the NFL and NBA will be able to demand the money money they've been getting

all sports is overpaid , I love how someone can bat 223 and make 12 million

 

[gtc08]

Again, politics have nothing to do with this. Look at TheBlaze, they are millions in debt and on the brink of dissappearing. That is a conservative site ran by Glenn Beck that pretends to be neutral. The reason why they are on the brink isn't politics, it's because they've blown millions on a failed radio and tv network.

ESPN spent way too much on sports contracts and fewer and fewer people are subscribing to cable. That's why they are losing money.

Look at the people who got cut. Half are beat team bloggers and on air reporters. None of them are bringing up politics when doing there jobs.

 

[PatsFan1283]

If there is a way for a national sports network to go in a different direction than ESPN then why doesn't FS1 just do it? They have the same bad shows with the same bad discussion. This is a network that employs Skip Bayless and Colin Cowherd.

They don't focus on NASCAR (which supposedly is more popular than bball and baseball combined?)

Why don't they just smash ESPN by having shows about following an agent around, NASCAR, golf and leave all politics and other terrible stuff out of it?

Unless they are doing this and I am unaware. The reason is simple, because it just isn't some great strategy that is going to yield results. None-live sports programming just isn't going to bring home the bacon in a climate where everything is now niche.

 

[Acebb]

No, ESPN won’t be changing their business model. The Public Editor wrote a few weeks ago “ESPN, in fact, just removed any question about the sports-politics-culture intersection when it released new political guidelines that loosen the restraints on commentary about politics and culture” and ends with “ESPN has made it clear: It’s not sticking to sports.”

Yesterday’s move, tripled down on them going full SJW by firing actual writers and analysts and keeping the clown show political commentators.

ESPN is also boxed in as the decision to give the NBA billions was horrendous and their entire business is built on a model that is a walking zombie.

By 2021, they will have to be a different company. What that is, I’m not sure. What I do know is that if I were a Disney executive, I certainly wouldn’t allow Skipper to continue. How he keeps his job is baffling.

 

[Acebb]

It is comical people are saying "politics has nothing to do with this"

ESPN has said several times they acknowledge they are losing people due to politics. Their response is that they do not care.

 

[PatsFan1283]

So in 5 or 7 years, far less people will have cable and more will have ESPN through YouTube, Hulu, Sling, purchasing channels a la carte, direct streaming and whatever else there is.

Then the company is leaner, what is the legitimate fallout to all of this? Some execs and talent who have been overpaid for years now make less, some athletes make less perhaps (or rate of salary growth slows) The 7th man on the Wizards makes 4m instead of 6.

It is an interesting little disruption but a sector getting frothy and having to pull back is hardly unheard of.

 

[festeringZit]

[ People got tired real fast with ESPN pushing liberal politics in their face ]

[h=1]ESPN Flagship on Fire: 100 Employees Thrown Overboard. Middle America Knows Why[/h]

---

BY KYLE BECKER
20 HOURS AGO


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Taylor Hill/Getty Images for ESPN

ESPN's “SportsCenter” used to be sports-loving America's television home.
It was a part of the national routine: watching Dan Patrick and Keith Olbermann engage in witty banter about a crazy Major League Baseball play, hearing Stuart Scott rant in an inimitable style that changed our sports lexicon, or seeing Dick Vitale go into animated hysterics with his trademark colorful banter about college hoops — those days seem like a distant memory now.
[FONT=&quot]VIDEO:

Disney Earnings Down on ESPN Income Drop​

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What made ESPN great was it was all about sports, in much the same way MTV used to be all about music. ESPN calls itself the Entertainment and Sports Programming Network, but it's become more about Entertaining Social-activists and Political Nonsense than providing America with comfortable background banter and the friendly water-cooler talk that unites us.
It's become divisive and desperate. And ever increasingly, liberal. It's become the 5-year-old kid in the room who keeps pulling the same predictable antics and gets ever louder, only to find itself getting more ignored.

Spencer Platt/Getty Images

Sports is an escape for hard-working Americans. Most of us have all the consciousness-raising we can take and then some. If you want to talk about the activism of Caitlyn Jenner or Colin Kaepernick, that's fine. But sports is why people watch ESPN. If people wanted to hear lectures about social justice, they'd hang out at a college faculty lounge. Sports is purportedly the reason the network exists.
That's why the blood-letting at ESPN on Wednesday — 100 employees suddenly without a job, more than expected — nonetheless doesn't come as a surprise to middle America. The forgotten man has changed the channel long ago.
Fox News reported of the development:

The sports broadcasting network sent a memo to employees early Wednesday, informing them that a series of previously announced layoffs would take place today. [...] The total number of employees cut will be around 100, Fox News has learned.
The memo, from ESPN President John Skipper, noted that the network's new talent lineup will be announced soon.
​

“Dynamic change demands an increased focus on versatility and value, and as a result, we have been engaged in the challenging process of determining the talent — anchors, analysts, reporters, writers and those who handle play-by-play — necessary to meet those demands,” the memo noted.
"We will implement changes in our talent lineup this week. A limited number of other positions will also be affected and a handful of new jobs will be posted to fill various needs.
“These decisions impact talented people who have done great work for our company. I would like to thank all of them for their efforts and their many contributions to ESPN,” the aptly named Skipper concluded, as if a Captain going down with the flagship.
In 2015, the network, owned by Walt Disney Corp., announced it could cut as many as 350 employees. In other words, ESPN saw the writing on its sports ticker.
There are a number of reasons for the 24/7 sports network's diminishing returns in the market; one of them is that ESPN pioneered sports television for over a generation. Competitors used to marvel at the network's sports coverage, then they sought a cut of the action.
ESPN subscribers are down below 2007 levels at fewer than 92 million. Its first quarter 2017 revenue is down 11 percent year-on-year. It has unfavorable contracts with nearly every sports league. It shells out $1.9 billion a year for NFL rights, more than double any other network, despite unfavorable scheduling like only one playoff game and no Super Bowl.

Frederick M. Brown/Getty Images for ESPY

SportsBusiness Daily points out a slew of increasing rights payments that “forced ESPN's cuts.” Its Major League Soccer rights payments are illustrative; they increased a whopping 838 percent to $75 million in the 2015 contract. College Football Playoff payments increased 391 percent to $608.3 million in 2014. The NBA contract? It's been a bust, rising to $1.4 billion a year in 2016.
Also take into account that cable customers are dropping their television contracts and opting increasingly for a la carte or Wi-Fi-driven applications like Roku.
Beyond the cable-cutting and the overpaying on contracts, the disconnect with ESPN is not so much technical as it is cultural. Many believe that ESPN has tilted further left than Blair Walsh's missed field goal in 2016 that would have advanced the Minnesota Vikings in the playoffs.
As news broke of ESPN's layoffs, a number of sports enthusiasts unleashed their thoughts on what went awry at the network.

Kevin Winter/Getty Image

Clay Travis of the popular sports blog Outkick the Coverage relates:

Middle America wants to pop a beer and listen to sports talk, they don't want to be lectured about why Caitlyn Jenner is a hero, Michael Sam is the new Jackie Robinson of sports, and Colin Kaepernick is the Rosa Parks of football. ESPN made the mistake of trying to make liberal social media losers happy and as a result lost millions of viewers.
​

Twitter was no kinder.
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<a class="u-linkBlend u-url permalink customisable-highlight" data-scribe="element:mini_timestamp" href="https://twitter.com/neontaster/status/857244621533052928" style="background-color: transparent; text-decoration: inherit; outline: 0px; font-weight: inherit;"><time class="dt-updated" datetime="2017-04-26T14:46:59+0000" pubdate="" title="Time posted: 26 Apr 2017, 14:46:59 (UTC)" aria-label="Posted 23 hours ago">23<abbr title="hours" style="border-bottom: 0px;">h</abbr></time>
neontaster @neontaster

I don't know the whole story regarding ESPN but I do know that in the past 6-8 months, my viewership has dropped to zero.

​

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neontaster @neontaster

You know what story really made ESPN punditry insufferable to me? Kaepernick. Only because they talked about it nonstop every day.
10:01 AM - 26 Apr 2017

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J @jackbauer5575

ESPN had a day long eulogy to Fidel Castro when he died. Disgusting network. Sorry for those who lost job but #espn can tank #ESPNLayoffs
10:04 AM - 26 Apr 2017

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rBill @Rbill8837User

ESPN's demise began when they began to lecture their viewers about politics. That's when it started and the rot continues to this day.
10:34 AM - 26 Apr 2017

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Ty Singletary @ty___2

Is ESPN going to make a 30 for 30 about its own demise?
10:33 AM - 26 Apr 2017

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|| @SavageRodgers12

ESPN fired the NHL staff in the middle of the playoffs. They should just convert SportsCenter to CurryLebronCenter. It's all they talk about
10:23 AM - 26 Apr 2017

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Mike Campos @SinBinSPHL

Live look-in at the ESPN hockey desk.
10:29 AM - 26 Apr 2017 · Lafayette, LA

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Bodega Baron @Kief3

Espn has a daily line up full of debate shows where each show debates the same exact topics & wonder why they struggling
10:22 AM - 26 Apr 2017

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Cuffy @CuffyMeh

If only there'd been a shrieking canary in ESPN's coal mine...
10:17 AM - 26 Apr 2017

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All politics is local in much the same way all sports is local. ESPN has turned something as distinctly American as our national sports into a divisive and fractured spectacle. It's a sad commentary on the state of the nation, just as much as it is an unfortunate turn for a once-beloved sports network.
Sports is something Americans watch to bond around our national community. It can bring fathers and sons, mothers and daughters, and friends and kin alike closer together. It can ease our minds, provide inspiration, or fire up our competitive spirits.
The hard left, like with so many other aspects of our public forum, sees sports as nothing more than a venue for social activism. In the process, the social activism is sucking the fun out of our national pastimes.
There's nothing wrong with middle America being happy and being left alone. This message is being sent out in the form of a silent memo: we're no longer watching or listening.
[/FONT][/COLOR]

 

[festeringZit]

"Middle America wants to pop a beer and listen to sports talk, they don't want to be lectured about why Caitlyn Jenner is a hero, Michael Sam is the new Jackie Robinson of sports, and Colin Kaepernick is the Rosa Parks of football. ESPN made the mistake of trying to make liberal social media losers happy and as a result lost millions of viewers."

 

[Willie99]

I learned today Andy Katz drives an Infinity. Sitting in the service waiting room with him.