ESPN Layoffs Are Imminent — And Almost Everyone Is Vulnerable

Andrew Marchand

sports and entertainment

By Andrew Marchand

March 20, 2023 | 2:36 p.m

ESPN’s latest round of layoffs will have “no sacred cows,” meaning everyone from top on-air folks to big executives will come under scrutiny, with cuts expected over the next four to six weeks will be completed, The Post has learned.

The moves are part of layoffs announced by Disney CEO Bob Iger that would affect all units of the company. Last month, Iger said 7,000 jobs would be cut across the board.

At the direction of ESPN chairman Jimmy Pitaro, department heads were instructed to review their departments to make them as efficient as possible. According to sources, there is currently no target figure for how many millions ESPN needs to save or how many employees will be laid off.

ESPN declined to comment.

In recent years, ESPN has spent big bucks on top commentators like Troy Aikman ($18 million a year), Joe Buck ($15 million a year), and Stephen A. Smith ($12 million a year), and they always are still in add mode as they are entering the Pat McAfee Sweepstakes according to sources.

Last week, The Post reported McAfee was considering a move to a network that could see him retiring from FanDuel amid a four-year, $120 million deal. But any McAfee-ESPN deal would have to make financial sense for the network. ESPN is an option for McAfee, but probably not a favorite right now.

Meanwhile, ESPN’s belt-tightening is already being felt in negotiations with college football national championship crier Chris Fowler. Fowler, who reportedly makes around $3 million a year, and ESPN were far apart in negotiations, sources say.

ESPN is following Pat McAfee despite a major round of layoffs looming. Getty Images

ESPN wants to keep Fowler, maybe with a slight raise since he’s his premier college football and Grand Slam tennis voice, but he won’t get a big raise to get him anywhere near buck money.

According to sources, the most at-risk on-air folks are those earning near or above seven figures and are not considered needle-movers. Smith, nightly SportsCenter host Scott Van Pelt and the Monday Night Football booth are considered the kind of “talent” who are untouchable.

Despite cable cuts that have seen subscribers drop cables, ESPN is still a cash cow for Disney, which it’s likely to show when it releases its separate earnings report in November. Previously, ESPN’s numbers were merged into Disney’s and not broken out, but under the new structure Iger recently revealed, ESPN will show its data to the public.

ESPN’s belt buckles can be felt in negotiations with Chris Fowler. Icon Sportswire via Getty Images

ESPN currently has a presence in around 74 million households, with each household paying in the $10-per-month range, meaning it still makes three-quarters of a billion dollars a month before it sells an ad. ESPN+, a relatively new direct-to-consumer add-on service, has 24.9 million subscribers. It costs $9.99 per month but can be bundled with Hulu and Disney+ for a cheaper price.

Iger recently said it’s “inevitable” that all of ESPN will go direct to the consumer. According to sources, there is no exact date, but it will happen in the next few years, if not sooner. ESPN would continue to be offered via cable and satellite, but its full programming would be available to cable cutters. ESPN recently reported that its ratings have increased 8 percent year over year overall and 14 percent in prime time.

Although ESPN has maintained its place at the forefront of sports media and continues to churn out profits – not as much as it used to – layoffs have become a regular part of the Bristol experience.

In 2015, ESPN — which had been immune for decades to cuts that had become a part of the media — was hit by 300 behind-the-scenes staff layoffs. Another 250 people were fired in 2017, including stars like Ron Jaworski, Marc Stein and Trent Dilfer.

At the direction of ESPN chairman Jimmy Pitaro, department heads were instructed to review their departments to make them as efficient as possible. Getty Images

Some of the people were on multi-year contracts and were paid off but fired for accounting reasons. According to sources, employees with contracts will also be under scrutiny this time.

In 2020, at the height of the pandemic, ESPN laid off 300 employees and chose not to fill 200 positions.

During that time, ESPN has spent heavily on sports rights, most notably in 2021 for the NFL, which was looking to pay the league nearly $2.7 billion per season. His agreement spans two Super Bowls and runs through the 2033 season. Beginning this year, flexible scheduling for Monday Night Football is also included. Spending $33 million a year for Buck and Aikman followed.

Now, however, there’s an order from Disney’s top executive to cut. It should probably be at the end of April or beginning of May.

Carton and Roberts hit Kay again

ESPN New York’s Michael Kay has just landed a huge new seven-figure contract, but his show continues to be thrashed by WFAN’s “Carton & Roberts.” For the second month of the three-part winter book, Craig Carton and Evan Roberts ranked third (7.2 shares) behind 17th (2.1) shares of “The Michael Kay Show” among 25-54 year old men, according to Nielsen Audio . In the morning, WFAN’s “Boomer & Gio” was #1 in the market (13.1 shares), while ESPN’s “DiPietro & Rothenberg” was 11th (3.3). At midday, FAN’s “Tiki & Tierney” was fourth (5.4), while ESPN’s host combo was 14th (2.2).

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