Disney has made it clear that it’s sticking with ESPN — despite recent entreaties from a prominent investor to spin off the network.

At the company’s D23 Expo, Disney CEO Bob Chapek publicized ESPN’s sports betting efforts, claiming Disney is “working very hard” on developing an ESPN sports betting app. 

Chapek characterized sports betting as important to Disney’s younger sports audience.

• “We believe that ESPN is an asset that is well placed within the Walt Disney company,” Chapek told Reuters.
• Amid spin-off rumors, Chapek said he’s received as many as 100 inquiries from interested parties, which “says something about its potential.”

Last month, when activist investor Daniel Loeb’s Third Point bought a $1 billion stake in Disney, Loeb sent a letter urging Chapek to spin off the sports network.

“ESPN would have greater flexibility to pursue business initiatives that may be more difficult as part of Disney, such as sports betting,” Loeb wrote.

Now, Loeb appears to be walking back his comments, tweeting on Sunday, “We have a better understanding of ESPN’s potential as a standalone business,” and that he looks forward to seeing ESPN chairman Jimmy Pitaro “execute on the growth and innovation plans.”

Loeb’s Loyalty

Loeb — who bought a separate stake in Disney in 2020 but sold it earlier this year — also called for cost cuts, a revamped board of directors, and a faster Hulu takeover timeline in his letter.

Chapek said he has “regular conversations” with Loeb that are “very collaborative, non-antagonistic, and collegial.”

The owner of the most circulated metropolitan daily newspaper in America is reportedly considering a bid to buy the Los Angeles Angels in a deal that could fetch at least $2.5 billion. 

Los Angeles Times owner and biotech entrepreneur Dr. Patrick Soon-Shiong is weighing whether to buy the Angels after a failed 2012 bid to purchase the Los Angeles Dodgers. 

Soon-Shiong, who partnered with hedge-fund billionaire Steven Cohen in the unsuccessful bid, finished second behind Mark Walter and his investment company Guggenheim Baseball Management. 

• Soon-Shiong has a net worth of $7.1 billion, per Forbes. 
• He is a minority investor in the Los Angeles Lakers.
• A potential deal could be a record for an MLB franchise. 

Team owner Arte Moreno hired financial services firm Galatioto Sports Partners in August to explore the sale of the franchise. Moreno — the first Latino team owner in major U.S. sports — purchased the team for $183.5 million in 2003, a year after the club won its only World Series. 

Sale Troubles 

Angel Stadium, the home field of the Angels since 1966, is undergoing a controversial and arduous sale process to a company controlled by Moreno. The $320 million sale was originally agreed to in 2019 but experienced pushback over concerns it violated affordable housing law.

In May, the sale was put on hold after a judge issued a 60-day stay amid a corruption investigation involving Anaheim mayor Harry Sidhu, who spearheaded the deal. Sidhu resigned amid allegations of bribery, obstruction of justice, and witness tampering.

The WNBA announced last month that it delivered the most-watched regular season in 14 years, but that’s not this season’s only milestone.

The league recorded its most-watched playoffs in 20 years with an average of 439,000 viewers through 19 games on ESPN.

• The semifinals, which featured the Seattle Storm against the Las Vegas Aces and the Chicago Sky against the Connecticut Sun, averaged 488,000 viewers — the highest since 2010.
• The most-watched playoff matchup was Game 3 between the Aces and Storm on ABC, which drew an average 905,000 viewers and peaked at 1.4 million.

The regular season brought a 16% year-over-year viewership increase. 

The league’s current broadcasting deal with ESPN ends in 2025 and is worth a reported $25 million annually.

WNBA commissioner Cathy Engelbert said the next media deal is “probably the most important business issue” she’s focused on and is “optimistic we’ll get something favorable.” 

The league is expanding to 40 games next season and could announce expansion teams by the end of the year. The list of possible expansion cities has been narrowed down to 10.

Engelbert wants to add two teams no later than 2025.

WNBA Wallets

Betting is becoming more popular in the league, too.

“We had a 270% jump in WNBA bet counts this year,” Engelbert said. “More women are betting, and our fan base skews [toward] women, younger, more digital-native.”

Last week, the league renewed its deal with FanDuel. Engelbert said she “would love to have more betting partners.”