ESPN is making new layoffs, most of them related to the Disney-owned sports giant’s deal to buy the NFL Network, according to a memo from chairman Jimmy Pitaro.
Pitaro revealed the layoff plans in a memo to staff on Tuesday, a copy of which was obtained by Variety. In February, the NFL acquired a 10% stake in ESPN, the result of a deal between NFL Network and NFL Red Zone to become part of ESPN’s operations.
“Over the past several months, we have made significant progress integrating acquired NFL assets into ESPN,” Pitaro wrote. “Throughout this process, we have taken the time to carefully evaluate our entire team, resources and organizational structure to best position ourselves for the future. As a result, we have had to make some difficult decisions about the impact on our work, which we plan to share today.”
Pitaro’s memo continued: “Although most of the employment impacts are related to the acquisition, we will also notify colleagues in other parts of the company today that their positions have been affected. We are committed to treating our employees with compassion and respect and providing support as they navigate this transition.”
Pitaro did not specify the scope of the job cuts. ESPN declined to comment.
The Athletic first reported that those being fired include longtime ESPN commentator Karl Labec, NFL Network reporter Tom Pelissero and NFL analyst Ryan Clark.
Also removed from ESPN’s roster were former NFL star Cam Newton (first reported by Outkick), “SportsCenter” anchor David Lloyd and injury expert and soccer analyst Stefania Bell (first reported by Front Office Sports).
The fair value of Disney’s NFL contract is estimated at $3 billion, according to Disney’s 10th quarterly report filed with the SEC in February. After July 2034, based on the performance of the NFL assets, Disney may have the right to reacquire the NFL’s interest in ESPN at 70% of the then-current fair market value of the NFL’s interest in ESPN in exchange for a 10-year guarantee. Alternatively, the NFL may have the right to acquire up to an additional 4% equity interest in ESPN with a purchase price equal to 70% of ESPN’s then-current fair market value.
