ESPN Faces Cost-Cutting Measures

More players are leaving the field at ESPN.

Keyshawn Johnson, Jeff Van Gundy, and Jalen Rose Exit ESPN

Keyshawn Johnson, the morning-show personality, Jeff Van Gundy, the veteran basketball analyst, and Jalen Rose, the NBA-player-turned-commentator, are all exiting the Disney sports-media giant, according to two people familiar with the matter, as executives look for ways to prune costs at the operation as its parent corporation grapples with seismic changes in its business.

Cost Savings and Job Cuts at ESPN

“Given the current environment, ESPN has determined it necessary to identify some additional cost savings in the area of public-facing commentator salaries, and that process has begun,” the company said in a statement. “This exercise will include a small group of job cuts in the short-term and an ongoing focus on managing costs when we negotiate individual contract renewals in the months ahead. This is an extremely challenging process, involving individuals who have had tremendous impact on our company. These difficult decisions, based more on overall efficiency than merit, will help us meet our financial targets and ensure future growth.”

No Comments from ESPN Executives

ESPN declined to make executives available for comment.

Staffers Notified of Departure

Approximately 20 people are being notified Friday that they will no longer appear on ESPN properties, according to one of the people familiar with the matter, even if their contracts will be extant for months. ESPN intends to pay these staffers out the full value of their current agreements though if they find jobs elsewhere, those terms could be renegotiated, this person says. Others may leave ESPN in months to come as the company identifies personnel whose contracts it may not want to renew.

Disney’s Efforts to Cut Costs

Disney has been working to cut its ranks over the last several months as it contends with the migration of linear TV viewers to streaming. Disney is among the biggest spenders on sports rights — one of the reasons for the success of ESPN over the decades — but will face increasing trouble if it does not keep an eye on costs, particularly as customers to might have once automatically subscribed to ESPN via cable or satellite seek other method of getting their sports fix.

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