FOS PM: ESPN Layoffs Imminent?

ESPN could begin announcing a major round of layoffs that would impact hundreds of employees as soon as Nov. 5, fueled partly by the COVID-19 pandemic and a desire to continue calling and producing games remotely.

Behind-the-camera workers — production assistants, researchers and camera operators — are expected to be hit significantly while some mid to senior-level talent will not see their contracts renewed, or will be asked to come back at a reduced salary. ESPN has approximately 4,000 employees based at its Bristol, Conn. headquarters, and around 6,500 worldwide. 

The layoffs come as parent company Walt Disney Co. is reportedly making a $1 billion pitch to acquire the rights to the NFL’s Sunday night matchup. NBC currently owns the NFL’s Sunday night rights — paying $960 million per year — and will likely vie to keep the marquee slot, while ESPN already spends almost $2 billion per year for “Monday Night Football.”

The NFL issued a number of updates to its COVID-19 protocols following multiple positive gameday tests. Two teams that played on Nov. 1 had one player test positive based on gameday specimen collections, a league memo said. 

Among the updates is an expansion of the sideline area at games to allow players off the field more space to distance. The space will now run between 20-yard lines. 

The league is also recommending that all players and team personnel wear a mask or gaiter on the sideline when not actively participating in a game. Additionally, players and staff will be required to wear face coverings in the locker room before, during and after games.

Sinclair Broadcast Group recorded revenues of $1.54 billion in its third quarter of 2020, up 37% compared to last year. That beat analyst expectations by 2.8%, according to Zacks Equity Research.

However, the broadcaster took a $4.23 billion impairment charge related to the value of its regional sports networks. Sinclair paid $9.6 billion in August 2019 for 21 regional sports channels that were once part of Fox.

Sinclair, which owns the largest portfolio of local TV stations in the U.S., was dealt a huge blow when YouTube TV and Hulu dropped its RSNs last month. The two platforms made up about 10% of September’s subscriber revenue for Sinclair’s sports segment.