More bad news for ESPN. According to Breitbart massive layoffs will be taking place within the next month as their subscriber base continues to decline.
The long-reported layoffs at ESPN will reportedly take place over the next month. That, according to sports media reporter Richard Deitsch of Sports Illustrated.
What hadn’t been rumored or reported, until now, is that ESPN will look to actually buy out some talent currently under contract. That represents a sharp departure from past ESPN policy. The Bristol-based sports giant typically refrains from buyouts, because like many companies they don’t see the sense in paying someone to not work. The decision to depart from that way of doing business suggests that ESPN wants to have the layoffs and the massive talent shake-up completed quickly.
The massive cuts, willingness to buyout contracts, and the attempt to have all this completed in time for a couple key dates on Disney’s financial calendar strongly suggest that Disney has exerted significant pressure on ESPN President John Skipper to get his network looking better on the spreadsheet.
Consistent with our reporting, ESPN’s massive subscriber loss, plummeting revenues, and exploding sports rights fees have panicked board members at the Magic Kingdom, in addition to shareholders and potential investors. Perhaps these aggressive cuts show, better than anything else, just how much things have changed for ESPN in the last five years, having gone from playing with seemingly endless amounts of their own money, and Disney’s, to all of a sudden having to play the bottom line, spreadsheet game much, much more strictly than they have at any time in the recent past.