Menu
Media

Questions Surround Whether Or Not Politics Could Be Affecting ESPN's Bottom Line

As ESPN responds to a new era of millennial media habits to "shore up its bottom line, it must also wrestle with the relative appetite of its viewers for political debate in a space that often has been considered ... as a refuge from the contentious questions that dominate the political realm," according to Ben Strauss of POLITICO. One of the explanations floated as to why ESPN is seeing subscribers leave in recent years is that it leans too far left, and if the net "embraces a more explicitly political style of programming, then it must contend with the same issues of balance and objectivity as an explicitly news-oriented media outlet." ESPN has made "no secret of its attempts to evolve by promoting debate shows and opinion on its airwaves," and in a politically charged time, it "makes sense that the network has become more political, as hosts and talking heads are expected to provide hours and hours of hot takes." As athletes have increased their political activism, politics has "become even more of a focal point." However, the question "persists: Are the on-air hosts pushing an agenda or covering a beat where the subjects themselves are using their celebrity to advance liberal causes?" Poynter Institute VP Kelly McBride, who served as ESPN Ombudsman from '11-12, said that the net has "always had a progressive view" on race relations. However, she "scoffed at the idea that ESPN could be uniformly liberal." Strauss noted some of ESPN’s recent programming "could be viewed as appealing more to conservatives." That includes "exhaustive coverage of Tim Tebow, an evangelical Christian, and then hiring him as an analyst." Additionally, Will Cain, a conservative pundit, "was also hired" (POLITICO, 5/2 issue).

STICK TO SPORTS? ESPN last week laid off around 100 reporters and on-air personalities, and BTIG media analyst Rich Greenfield said the net's main challenge is that "subscribers are falling, eyeballs watching are falling, and they have way, way overspent on sports rights." He said, "They are scrambling to reduce costs. There is no other way to read it." Conservative talk show host Steve Deace concurred, saying, "This is the evolution of how media has evolved." However, he added politics "certainly has played a role in how deep the cuts had to be." Deace: "It has hastened their demise. When your business model is collapsing, the last thing you do is narrow your potential base." BUZZFEED's Steven Perlberg wondered how ESPN became "such a flashpoint conservative meme." Deace and Republican strategist Matt Mackowiak claim that they "trace the beginning conservatives’ criticism" of the net to its coverage of Michael Sam, who publicly came out as gay prior to the '14 NFL Draft. Deace said, "They drove this into the ground" (BUZZFEED.com, 5/2). YOUGOV's Paul Hiebert cited data from the market research company that a quarter of all current ESPN customers are "considering cancelling their cable subscription at some point in the future." However, there also is "some truth to the idea that conservatives have grown cold" to the net. YouGov's numbers "show that ESPN impression scores among Republicans have dropped" by half in the last four years. Democrats have "kept a relatively stable view of the network during the same period." This comes as Caitlyn Jenner in '15 was given the Arthur Ashe Award for Courage at the ESPY's, while ESPN fired MLB analyst Curt Schilling in part for "posting controversial content" on social media. In both cases, Republican sentiment toward ESPN "declined" (YOUGOV.com, 5/3). In Chicago, Mike North writes the net hiring Ray Lewis in '13 was the "beginning of ESPN's negative ratings." The company will continue to lose subscribers "unless they start to give the flyover states some representation" (Chicago DAILY HERALD, 5/5).

RUB SOME DIRT IN IT: In N.Y., S.E. Cupp wrote taking politics and opinion out of ESPN "would make it a relic," as sports fans "have dozens of places online to go for scores and highlights." It should be "comfortable being the MSNBC of sports" and let another network "offer sports without the politics, if they want to try that, or sports with another slant." Some outlets are "already angling to fill that void." Barstool Sports, while not a political project, is "without question providing compelling sports fare in a far more entertaining, relatable and not at all pretentious way." Conservatives may be "gloating over ESPN’s recent woes," but instead of "arguing over how to change it, they should be arguing over how to answer it" (N.Y. DAILY NEWS, 5/3).

POLITICS NOT A FACTOR: THE ATLANTIC's Derek Thompson wrote over the past decade, ESPN "built perhaps the most profitable business in media, and the future of its business will likely exist somewhere beneath that superlative." But as long as Americans enjoy sports -- and as long as "individual sports leagues see a financial benefit in selling access to an entertainment company rather than selling straight to consumers -- there is every reason to expect ESPN will continue to be an extremely valuable network." Thompson wrote it is "mostly silly to blame politics for ESPN’s financial decline." The net makes "most of its money from subscription fees, not advertising, and it’s pretty absurd to imagine that a Trump voter would hear a pro-multiculturalism comment on SportsCenter and respond by cancelling his entire cable subscription (which would mean no more Fox News)" (THEATLANTIC.com, 5/1). MEDIUM's Alexander Goot wrote the problems ESPN faces "are the problems of cable television more broadly." Goot: "Some nebulous notion that ESPN’s business is declining because they employ some whip-smart liberal commentators, discuss the real-world political implications of sports stories, and have the audacity to treat Michael Sam, Caitlyn Jenner, and Colin Kaepernick as human beings worthy of respect? That dog don't hunt" (MEDIUM.com, 5/3).

PROBLEMS WITH BUSINESS MODEL: THE ECONOMIST notes there is "little cause for worry" about ESPN's relevance in the short term, as its "profits should start growing again from 2018" due to its affiliate fees. The net "should continue to be Disney's cash cow" for at least the "next five years." However, after that, the "rights' costs will ratchet up again after deals expire," and the "high affiliate fees look ever more precarious" (THE ECONOMIST, 5/6 issue). In Norfolk, Harry Minium wrote for "too long" it felt like ESPN was "immune to market forces." Minium: "Arrogance led ESPN to overpay for rights fees and to care less whether it angered viewers in middle America." That does not "mean ESPN is going bankrupt." It is "still profitable, its brand unrivaled in sports media, and will continue to be an industry giant for decades." But the fact that people are "tuning out ESPN in growing numbers will have major consequences for athletes, pro sports leagues and college sports." Future TV contracts "won’t be as lucrative" (Norfolk VIRGINIAN-PILOT, 5/3). SALON's Amanda Lotz wrote the "crisis at ESPN developed because of the lack of competition." ESPN’s monthly fee "grew so high because cable providers had no choice but to pay it; there was no alternative channel that also provided these games." Subscribing to cable "required receiving ESPN and the substantial monthly cost it added." This has "been the case for some time, but the disruption introduced by streaming services has created competition and at last triggered an adjustment." There is "no way for ESPN to go back to its previous position of demanding high subscriber fees and forcing all cable subscribers to subsidize its programming" (SALON.com, 5/3).

COMMITMENT TO JOURNALISM INTACT: In DC, Rick Maese reports ESPN execs claim “journalistic ambitions have not changed” after last month's cuts, pointing out "some initiatives they feel will bolster ESPN’s commitment to investigative journalism and storytelling.” Jeremy Schaap will host a new version of "E:60” beginning May 14, while "OTL" will re-launch the next day "with a new look and feel.” ESPN VP & Dir of News Craig Bengston said, “We have an unique opportunity here because our strength of resources, depth of reporters and diversity of voices allows us to tell a broad range of stories that no one else can. And if we’re not doing it, I’m not sure it’s getting done. It’s certainly not getting done at the level of quality and quantity that we can provide.” Robert Lipsyte, who served as ESPN Ombudsman in ’13-14, said that while it is “too early to gauge the exact impact the recent cuts might have on the company’s journalism, many of the people who were laid off were ‘transactional’ journalists, those who cover the granular machinations of teams and leagues but not necessarily the ones who regularly tackle complex issues that transcend sports.” Schaap: “I know everybody at  ESPN understands how delivering the news -- breaking news, telling stories, human interest, social justice human rights issues, all that stuff -- is essential to what we do. It’s not ancillary. It’s not a sideshow. It is the show to a large degree. It always has been. I don’t see that changing” (WASHINGTONPOST.com, 5/5).

SBJ Morning Buzzcast: March 25, 2024

NFL meeting preview; MLB's opening week ad effort and remembering Peter Angelos.

Big Get Jay Wright, March Madness is upon us and ESPN locks up CFP

On this week’s pod, our Big Get is CBS Sports college basketball analyst Jay Wright. The NCAA Championship-winning coach shares his insight with SBJ’s Austin Karp on key hoops issues and why being well dressed is an important part of his success. Also on the show, Poynter Institute senior writer Tom Jones shares who he has up and who is down in sports media. Later, SBJ’s Ben Portnoy talks the latest on ESPN’s CFP extension and who CBS, TNT Sports and ESPN need to make deep runs in the men’s and women's NCAA basketball tournaments.

SBJ I Factor: Nana-Yaw Asamoah

SBJ I Factor features an interview with AMB Sports and Entertainment Chief Commercial Office Nana-Yaw Asamoah. Asamoah, who moved over to AMBSE last year after 14 years at the NFL, talks with SBJ’s Ben Fischer about how his role model parents and older sisters pushed him to shrive, how the power of lifelong learning fuels successful people, and why AMBSE was an opportunity he could not pass up. Asamoah is 2021 SBJ Forty Under 40 honoree. SBJ I Factor is a monthly podcast offering interviews with sports executives who have been recipients of one of the magazine’s awards.

Shareable URL copied to clipboard!

https://www.sportsbusinessjournal.com/Daily/Issues/2017/05/05/Media/ESPN.aspx

Sorry, something went wrong with the copy but here is the link for you.

https://www.sportsbusinessjournal.com/Daily/Issues/2017/05/05/Media/ESPN.aspx

CLOSE