High-profile names among ESPN layoffs
espn was wrapped
in Teflon for many years, but big payouts for rights fees plus significant losses in their subscriber base were like punches to the gut and head, and now the company is trying to make sure they are strong enough to fight in the future, said James Andrew Miller, who wrote a book on ESPN and has contributed to The New York Times. Theyve decided one way to do this is to change their approach to content and rely more heavily on digital; this has enabled them to let go of a big chunk of their talent base.In October 2015, ESPN laid off about 300 people, most of whom were not on camera. The network has been periodically culling its staff as it searches for ways to cut costs and adapts to changing consumer habits, with fans increasingly watching video clips on their smartphones at the expense of traditional highlight shows like SportsCenter. With ESPN locked into long-term contracts for programming rights with various sports leagues, savings must primarily come from a reduced staff.
In a letter to employees on Wednesday, ESPNs president, John Skipper, acknowledged the difficult decisions ahead and suggested what the network was looking for as it reshapes itself.
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, Mr. Skipper said in the statement.
In the most recent quarter, Disneys cable networks division reported $864 million in operating income, an 11 percent drop from the same period a year ago, with ESPN the reason for the entire decline, Disney said at the time. The company blamed higher N.B.A. and N.F.L. programming costs and lower ad sales for the weak results.
Earlier this month, Amazon paid $50 million for streaming rights to 10 of the N.F.L.s Thursday night games for the 2017 season or five times more than what Twitter paid a season ago, according to SportsBusiness Journal, which also reported that Facebook and YouTube bid on the package.
The ESPN layoffs come as Disney accelerates efforts to introduce an ESPN-branded subscription streaming service. The offering, expected this year and made possible by Disneys $1 billion purchase in 2016 of part of BamTech, Major League Baseballs streaming division, will include coverage of sports like hockey, tennis, cricket and college sports mostly rights that are owned by ESPN, but not televised.
You have to be willing to either create or experience some distribution as we migrate from what has been a more traditionally distributed world to a more nontraditional distribution world, Robert A. Iger, Disneys chief executive, told analysts on a conference call in February. And some of that were going to end up doing to ourselves, meaning that we understand there is disruption, but we believe we have to be a disrupter, too.
Photo A 2015 photo of the ESPN headquarters in Bristol, Conn. Credit Jessica Hill/Associated PressDisney has long relied on ESPNs steadily climbing cable subscriber fees as a profit engine. But cable networks across the board have been losing viewers to online media, which has slowed growth, and Wall Street has responded unfavorably.
Despite assurances by Mr. Iger that ESPN remains strong, investors and analysts have remained concerned about upheaval in the television business. Viewership via satellite and cable services is declining as streaming options proliferate, and ESPN, the naysayers contend, is particularly exposed to a slowdown because Disney has locked itself into lavish, long-term payments for sports rights.
In a sign that Disney had done a good job preparing investors for the layoffs, shares climbed slightly in Wednesday morning trading.
Here are some of the ESPN employees who have made statements on social media so far (we will update this list):
Jay Crawford, SportsCenter anchor
Ed Werder, N.F.L. reporter
Jayson Stark, baseball writer
Trent Dilfer, N.F.L. analyst
Len Elmore, college basketball analyst
Dana ONeil, college basketball reporter
Eamonn Brennan, college basketball reporter
Danny Kanell, Russillo and Kanell radio host
Justin Verrier, N.B.A. reporter
Robin Lundberg, radio host
Calvin Watkins, N.B.A. reporter
Melissa Isaacson, columnist
Ted Miller, Pac-12 reporter
Jane McManus, writer
Ashley Fox, N.F.L. reporter
Ethan Strauss, N.B.A. reporter
Jeremy Crabtree, college football reporter
Brian Bennett, Big Ten reporter
Doug Padilla, baseball writer
Max Olson, college football reporter
C. L. Brown, college basketball reporter
Mike Goodman, soccer writer
Johnette Howard, columnist
Austin Ward, Big Ten football reporter
Joe McDonald, hockey writer
Pierre LeBrun, hockey writer
Scott Burnside, N.H.L. columnist
Jesse Temple, Big Ten football reporter
Jim Bowden, baseball analyst
Mark Saxon, baseball reporter
Brett McMurphy, college football reporter
Paul Kuharsky, Tennessee Titans writer
Derek Tyson, SEC recruiting analyst
Jean-Jacques Taylor, ESPNDallas
Brendan Fitzgerald, ESPNU host
Correction: April 26, 2017An earlier version of this article misstated the length of ESPNs broadcasting deal with the N.F.L. It is for eight years, not 10.
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