In September, Disney laid off 28,000 employees, mostly at two theme parks in the US. It posted a loss of $ 4.72 billion in its most recent quarter, including April to June. Income in the company’s cable division, which is made up largely of ESPN but also includes property like the Disney Channel, was down 10%.
Before layoffs, ESPN has taken steps to reduce costs for its employees. Some employees have had salaries cut, and executives and well-paid employees have been asked to cut wages in recent months.
While ESPN’s highest-profile employees won̵7;t be directly affected by these cuts, some direct talent will most likely not get a contract renewal once they expire and others. may be less profitable to renew.
According to some talented employees, who have insisted on anonymity so as not to damage their relationship with ESPN, the company is playing hard in the negotiations. In recent months, a number of online employees have signed renewals with a base salary of less than $ 50,000 and a bonus per appearance on air, as they previously had larger contracts securing some. appearances on certain waves.
During the pandemic, ESPN broadcast more games from afar, with a limited number of personnel on site and most of the functionality being performed from one of the company’s broadcast centers in Bristol, I n; Los Angeles; New York; or Charlotte, NC This saves travel and employee costs, and at least some of the enhanced telemetry is expected to continue even after ESPN believes commuting completely safe.
As the firm cuts costs, it is aiming to be able to increase its already large commitment to royalty fees. The NFL’s contract with television networks will expire in 2021 and 2022, and ESPN is expected to not only bid to retain the “Monday Night Football” package but also bid for a bundle of Sunday games. and join the Super Bowl rotation. ESPN’s broadcast contract with Major League Baseball is about to expire, and they may consider bidding for rights to NHL games next year.
ESPN is just the latest sports media facility fired. Fox Sports laid off between 50 and 100 employees over the summer, NBC Sports laid off about 75 employees at regional sports networks and The Athletic laid off 46 people.