ESPN is making a fresh round of layoffs, most of which are related to the Disney-owned sports giant’s deal to take over the NFL Network, according to a memo from chairman Jimmy Pitaro.
Pitaro revealed the planned job cuts in a memo to staffers Tuesday, a copy of which was obtained by Variety. In February, the NFL took a 10% stake in ESPN, the result of a deal that made NFL Network and NFL RedZone part of ESPN’s operations.
“Over the past several months, we’ve made significant progress integrating the NFL assets that we acquired into ESPN,” Pitaro wrote. “Throughout this process, we have taken the time to carefully evaluate our collective teams, resources and organizational structure to best position us for the future. As a result, we had to make some difficult decisions about job impacts that we will be communicating today.”
Pitaro’s memo continued, “While most of the job impacts are tied to the acquisition, we will also notify colleagues in other parts of the company today that their positions have been impacted. We are committed to treating employees with compassion and respect and to providing support as they navigate this transition.”
Among those who are being let go are longtime ESPN commentator Karl Ravetch, NFL Network reporter Tom Pelissero and NFL analyst Ryan Clark, the Athletic reported, citing anonymous sources.
ESPN declined to comment on specific staff layoffs.
Disney’s NFL deal has an estimated fair value of $3 billion, according to the media company’s quarterly 10-Q filing with the SEC in February. After July 2034, based on the performance of the NFL assets, Disney may have the right to reacquire the NFL’s interest in ESPN in exchange for a 10-year security at 70% of the then-fair market value of the NFL’s interest in ESPN. Alternatively, the NFL may have the right to acquire up to a 4% additional equity interest in ESPN at a purchase price equal to 70% of the then-fair market value of ESPN.
Leave a Reply