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ESPN Opts Not To Renew Olbermann's Contract Amid Cost-Cutting Efforts

ESPN last night officially stated that it would not bring back Keith Olbermann and his self-titled ESPN2 show after his contract expires at the end of the month. The net in a statement said, “Keith is a tremendous talent who has consistently done timely, entertaining and thought-provoking work since returning to ESPN. While the show’s content was distinctive and extremely high quality, we ultimately made a business decision to move in another direction” (THE DAILY). VARIETY's Brian Steinberg cited a source as saying that ESPN execs "were pleased with the quality of Olbermann's program," but felt the show "was not attracting a level of viewership required to keep it on the air." The source added that Olbermann and ESPN "had been discussing a new contract" (VARIETY.com, 7/8). AD AGE's Anthony Crupi cited sources as saying that while the "mercurial host generally behaved himself over the course of his short return stint," Olbermann's outspoken criticism of NFL Commissioner Roger Goodell "had ESPN higher-ups wishing that he'd tone down the attacks." Olbermann additionally this spring was "briefly suspended for a wholly unrelated incident" in which he sent several "insensitive tweets directed at Penn State students." Still, his two years with the net "were generally unblemished by the rages and clashes with senior management that colored his earlier stint at ESPN" in the '90s (ADAGE.com, 7/8).

FINANCIAL REASONS PLAYED A ROLE? The HOLLYWOOD REPORTER's Marisa Guthrie noted Olbermann's departure comes after ESPN reportedly "floated an ultimately unworkable caveat: that Olbermann cease engaging in commentary." ESPN also had the idea of "having Olbermann take his show to the network's headquarters in Bristol or to the Los Angeles facility rather than the ABC News Times Square studio" that ESPN leases. That would have saved the net $40M at a time when it is "feeling a financial pinch from its Disney corporate parents" (HOLLYWOODREPORTER.com, 7/8). SI.com's Richard Deitsch wrote the backdrop for Olbermann's release is "clear cost-cutting in Bristol." The days of "big money talent renewals at ESPN, at least in the short term, appear over." The Olbermann camp "would offer, among other things, that it was promised certain assignments from ESPN management -- including hosting 'SportsCenter' -- which were never fulfilled." Money also "was undoubtedly an issue." Author James Andrew Miller said, "ESPN thought about it, but then decided they weren’t going to open up 'SportsCenter' to Olbermann, nor any of their other major vehicles. Once they realized they weren’t actually going to use him in significant roles and at significant times, keeping him no longer made sense." He added, "Olbermann was far from being a high-priced ticket by today’s Bristol standards, but a new contract wouldn’t have been insignificant. Roles and dollars were the driving forces here, not behavior" (SI.com, 7/8).

LATEST BIG-NAME DEPARTURE
: In N.Y., Richard Sandomir notes the decision to part ways with Olbermann comes on the heels of the net's decision "not to renew the contract of another high-profile personality, Bill Simmons." ESPN President John Skipper was "closely associated with the rise of Simmons and the return of Olbermann" (N.Y. TIMES, 7/9). In N.Y., Bob Raissman notes ESPN’s hiring of Olbermann "coincided with Fox launching Fox Sports One." At the time, "much was made of a 'new' Olbermann, a man at peace who was tired of burning bridges, returning 'home' for the long term" (N.Y. DAILY NEWS, 7/9).

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