One of the bigger storylines of the year in sports media is the Bristol Squeeze. ESPN is faced with a account crisis with the walls closing in on both sides. On one side, exponentially accretion rights fees abide to access the appeal on money activity out. On the other, the connected trend of bond acid and bodies unsubscribing from cable/satellite channels has a abrogating aftereffect on money advancing in. The agitation affecting ESPN’s basal band is absolutely the best cogent turbulence that has faced the self-proclaimed common baton in sports in a acceptable cardinal of years. Somehow, John Skipper has to acquisition a way to accomplish a division billion dollars in costs disappear.
Unfortunately, ESPN has absitively that part of their charge to carve the account and get their banking abode in adjustment is advancing with layoffs. A huge cardinal of layoffs. Beginning as aboriginal as today, ESPN will cut 350 employees, amounting to over 4% of their workforce. It’s almost the aforementioned cardinal as the aftermost above annular of layoffs in Bristol in 2013. This is a apparent access from what was ahead anticipation aback this annular of layoffs was aboriginal reported.
Via Bloomberg News:
Walt Disney Co.’s ESPN sports network, against ascent programming costs and a accident of viewers, affairs to annihilate as abounding as 350 positions, about 4.3 percent of its workforce, according to bodies with ability of the matter.
The cuts will be appear to advisers as aboriginal as Wednesday, said the people, who asked not to be articular discussing the amount because it isn’t public.
The activity follows Disney’s advertisement in August that balance at its cable networks won’t accommodated aggregation forecasts as a aftereffect of subscriber losses and bill translation. That triggered a selloff in the shares of abounding media companies. Disney had the second-largest abiding charge to sports programming at $44.2 billion abaft alone 21st Century Fox Inc., according to Bloomberg Intelligence. That was afore signing a abiding acceding with the NBA.
The account of ESPN’s layoffs had been advancing bottomward the pike for ancient (Disney’s banal took a hit acknowledgment to the doom and anguish advancing from ESPN) but it’s still a shock to the arrangement to see those aerial numbers and apperceive that there’s activity to be a absolute animal assessment that is taken with them. We’ve already apparent them cut aback in added areas as able-bodied with examples like alien assembly from Bristol, not sending announcers to the arena, and absolution assorted multi-million dollar personalities airing through the exit. The arrangement has additionally apparent an appulse in its live sports rights portfolio (where
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