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ESPN President Jimmy Pitaro
Steve Zak Photography | Movie Magic | Getty Images
Disneys ESPN on Friday She informs about 20 of her on-air characters that they will no longer appear on any of the network’s platforms.
The cuts include former National Basketball Association coach and current game analyst Jeff Van Gundy and former NBA player and studio analyst Jalen Rose, according to a person familiar with the matter.
“Given the current environment, ESPN has determined that it is necessary to identify some additional cost savings in the area of audience-facing commentator salaries, and has begun that process,” ESPN said in a statement. “This exercise will include a small set of short-term job cuts and a continued focus on cost management as we negotiate individual contract renewals in the coming months.”
“This is a very difficult process, involving individuals who have had a tremendous impact on our company,” the network said. “These tough decisions, based more on overall competence than on merit, will help us achieve our financial goals and ensure future growth.”
The cuts are part of ESPN’s efforts to meet its financial goals for 2023 and beyond. Targeting on-air employees with great salaries will allow ESPN to keep more employees across the organization.
Disney, which majority owns ESPN, recently concluded its own rounds of layoffs of up to 7,000 employees. Media giants are chipping away at costs as growth slumps to boost free cash flow. Disney may need the cash if it chooses to acquire Comcast’s minority stake in Hulu — a deal with an option to run at the start of 2024.
More departures to come
ESPN’s cuts are separate from that initiative and tied to its own set of metrics and priorities. Disney reorganized the company earlier this year, giving ESPN president Jimmy Pitaro his own balance sheet responsibilities.
ESPN also plans not to renew the contracts of more on-air employees as their contracts expire in the coming months, said the person, who asked not to be named because the details are private. Another person said that could amount to another 20 or so departures.
One person said that laid-off employees will have the option to work elsewhere but will have to renegotiate their premium connections with ESPN. If employees find jobs with a competitor, ESPN may offer a lower bonus for the remainder of the contract than employees who find work in other areas, the person said.
Van Gundy has been with ESPN for the past 16 years and has gained a wide reputation for his game commentary and sense of humor. He was part of a three-man broadcast team for NBA games along with play-by-play announcer Mike Breen and co-analyst and former NBA player and coach Mark Jackson.
Rose was a part of ESPN and ABC’s NBA pregame show, NBA Countdown, Since 2012. Joined ESPN in 2007. The New York Post first reported ESPN will release Van Gundy and Rose.
ESPN announced last month that it had hired a former NFL punter Pat McAfee, host of The Pat McAfee Show. The New York Post reported ESPN is paying McAfee about $85 million over five years. However, ESPN’s McAfee comes with a ready-made offer that the network believes will be profitable from day one.
Watch: Lunch of 3 Stock: How Disney Plays.
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