Tucker blasts sports network for
not sticking to sports and entertainment and now becoming more known for
political controversies, like the latest involving a commentator's
Twitter rant where he calls Pres. Trump a white supremacist
John Skipper was furious.
One of his star anchors, Jemele Hill, had sent a tweet calling President Donald Trump a “white supremacist.” Mr. Trump’s supporters called for her to be fired. Prominent black athletes defended the anchor, who is African-American.
Sitting in his office last September, Mr. Skipper, then
ESPN’s president, lit into Ms. Hill, according to people familiar with
the meeting. If I punish you, he told her, I’d open us up to protests
and come off as racist. If I do nothing, that will fuel a narrative
among conservatives — and a faction within ESPN — that the network had
become too liberal.
Mr. Skipper chose to spare Ms. Hill. Mr. Trump weighed in on
Twitter : “ESPN is paying a really big price for its politics (and bad programming). People are dumping it in RECORD numbers.”
The president’s tweet was hyperbolic, but it tapped
into real anxiety at ESPN. What was the way forward for a company shaken
to its foundations by the cord-cutting revolution?
Executives at the sports-media giant wanted to seek out
new audiences by spicing up shows with opinionated analysis and debate,
including on SportsCenter, its struggling news and highlights
franchise.
But the amount and intensity of political expression
generated sharp internal disagreements over whether ESPN was
appropriately taking part in the broader national conversation, or
whether top executives were encouraging a divisive company culture and
giving too much leeway to hosts to promote left-leaning views, both on
air and on social media.
The amount and intensity of political expression
generated sharp internal disagreements over whether ESPN was
appropriately taking part in the broader national conversation, or ...
giving too much leeway to hosts to promote left-leaning views.
Well before Ms. Hill’s tweet controversy, network icon
Bob Ley had approached Mr. Skipper to say “there was a problem with
balance internally,” people familiar with the matter said. Reached for
comment, Mr. Ley said Mr. Skipper “was always extremely receptive.”
Linda Cohn, one of ESPN’s most prominent female
anchors, in April 2017 gave a radio interview opining that ESPN’s
politics were pushing away viewers and the network had overpaid for NBA
rights. Mr. Skipper called to berate her on both counts, people familiar
with the call said.
Why ESPN found itself torn up by the nation’s partisan
politics traces back to its fundamental business challenge. Its status
as cable TV’s most expensive channel had become a liability. As
consumers grew fed up with their monthly cable prices, big cable
distributors began offering discounted packages that didn’t include the
network. Many consumers opted for those offers, while others cut the
cord entirely, leading ESPN to shed 16 million subscribers over seven
years.
At the same time, costs have ballooned, especially for
vital live sports rights. Average annual payments tied to ESPN’s four
biggest, long-term rights deals have more than doubled since 2013 to
$4.7 billion. After years of growth, ESPN’s profit declined in the
fiscal year that ended in September 2017, people familiar with its
finances said. Declines have continued for the two ensuing quarters.
ESPN has laid off some 600 employees over the past several years,
including well-known hosts, though it has hired in areas such as
technology and data.
ESPN has laid off some 600 employees over the past several years, including well-known hosts.
ESPN’s relationship with majority-owner Walt Disney Co. DIS -0.76% grew
tense as the once reliable profit engine turned into a public headache,
people close to the situation said. A recent management shake-up gave
Disney a chance to exert more control. Mr. Skipper departed suddenly in
December, citing a substance-abuse issue. He later said someone from whom he bought cocaine had tried to extort him.
Disney Chief Executive Bob Iger installed as his replacement James Pitaro, Disney’s
former consumer products and digital chief. Mr. Pitaro has promised to
expand ESPN’s audience by targeting younger and casual fans, including
with a new streaming service launched last month.
He believes ESPN leaned too much into politics and that has influenced
how the company was perceived, a person close to ESPN said. He has
encouraged its programs to return to news and highlights and move away
from opinionated commentary.
Mr. Pitaro has said that despite the political debates
roiling the network last year, total day ratings were up 1% in 2017 from
the previous year, in a largely bleak cable-TV landscape.
ESPN has struck new deals with some cable companies
ensuring it gets a share of the monthly bills paid by at least 85% of
their subscribers, regardless of how many sign up for packages that
include ESPN, people familiar with the terms said. And it has added back
2.4 million subscribers thanks to growth in the past few years from new
streaming cable TV services such as Hulu and Sling TV.
An ESPN spokesperson said the company’s momentum is strong.
Several network employees said the company has turned a
corner. “When you know that there are dark days coming, it wears on
folks collectively,” said ESPN’s late-night SportsCenter anchor Scott
Van Pelt, about morale in the past during rounds of layoffs. But more
recently, under Mr. Pitaro, “there is a sense that those days are in the
rearview,” he said.
Others are jaded after budget cuts and job losses,
according to interviews with current and former staffers. “I think the
morale there is probably as bad as I’ve seen it in my 22-year tenure,”
said Jeannine Edwards, a longtime on-air reporter who retired in
December.
“I think the morale there is probably as bad as I’ve seen it in my 22-year tenure.”
Other workplace culture issues have surfaced. Some
female staffers were aghast when the network launched a show last fall
with Barstool Sports, even after some prominent hosts privately
expressed concerns to executives that the outlet’s content was sexist
and offensive, according to people familiar with the conversations. ESPN
canceled the program after the outcry became public.
More recently, a producer filed a human resources
complaint that ESPN wasn’t doing enough to promote women and minorities
in production, and the network has interviewed several people who work
on SportsCenter, according to people familiar with the situation. ESPN
declined to comment on the investigation.
'Flat-earthers'
Turmoil in the sports powerhouse’s business traces back
to a spring day in 2014. Disney had invited about 100 analysts and
investors to ESPN’s headquarters in Bristol, Conn., to hobnob with
talent including tennis legend John McEnroe and show off ESPN’s new,
$150-million-plus production facility.
In an unusual move, Disney gave long-term financial
guidance for its cable networks division, largely powered by ESPN. It
was rosy. ESPN’s research department presented data arguing cord-cutting
was unlikely to become widespread, according to attendees.
“They were flat-earthers,” said one former ESPN executive.
At the same time, ESPN was spending aggressively. The
company agreed to triple the fees it would pay the NBA, which it
believes is growing in popularity. On the talent side, Mr. Skipper
closely managed negotiations, desiring to beat back rivals like Fox
Sports 1 and NBC Sports. Agents, former ESPN executives and hosts said
that led him to overpay for several on-air personalities.
By 2015, it became clear the research staff was off
base, as ESPN’s subscriber losses accelerated beyond internal
projections. That August, Mr. Iger lowered the company’s earlier
financial guidance, causing a stock selloff that lopped more than $20 billion off Disney’s market value that week.
Mr. Iger expressed reservations to Mr. Skipper about
ESPN’s programming. SportsCenter was flooding the airwaves with many
editions and he said it wasn’t distinguishing itself, a person familiar
with the conversation said.
Former Disney boss Bob Iger expressed concern about ESPN's programming.
ESPN and Disney’s finance teams began to quarrel over
budgets as the network was told to find cuts, people familiar with the
matter said.
ESPN shaved spending, including by producing games
remotely without announcers on site, but changing the culture was
challenging. In 2015 the network spent lavishly to beef up its
“SportsCenter on the Road” segments, including by pouring over $2
million into programming surrounding the Floyd Mayweather-Manny Pacquiao
boxing match, well above initial projections internally, people
familiar with the situation said.
For some staffers that became a symbol of excess. Rob
King, the executive in charge of SportsCenter at the time, appointed a
senior producer to monitor budgets closely after the episode, the people
said. A person close to ESPN disputed that spending on the fight
overshot internal projections.
Some current and former employees said bloated
contracts for talent weighed the company down and led to layoffs. ESPN
is still paying many hosts, including former NFL reporter Ed Werder, who
were on multiyear contracts when they were laid off more than a year
ago.
A new morning talk show that launched last month, “Get
Up,” costs far more than its predecessor, a SportsCenter morning
edition, and is underperforming it in ratings. Payments to the show’s
talent total some $15 million a year, with co-host Mike Greenberg making
$6.5 million, people familiar with the costs said. Midlevel
SportsCenter hosts tend to earn less than $500,000, one agent said, with
better-known ones making up to $1 million and stars landing
multimillion-dollar deals.
Mr. Pitaro told reporters in May that ESPN is
monitoring the show daily, “trying to identify what’s working and what’s
not.” He said the show’s ratings are up since its launch.
#BoycottESPN
There is broad agreement within ESPN that covering
sports news means sometimes tackling hot topics like politics and race.
The internal debate centered on the tonnage of such coverage, conduct on
social media and whether ESPN as a company should take political
stances.
Mr. Skipper sought to promote progressive social
values, but often his moves came off as overtly political, staffers
said. Under Mr. Skipper, ESPN awarded a prestigious “ESPY” award for
courage to Michael Sam, the first openly gay athlete drafted into the
NFL, and another to Caitlyn Jenner for coming out as a transgender
woman.
An ESPY award for Caitlyn Jenner came across to some as being overtly political.
When Mr. Trump disparaged Mexican immigrants during his
candidacy, ESPN shifted a charity golf tournament from Trump National
Golf Club to a different venue, a move ESPN’s public editor at the time
said seemed “political.”
Conservative ESPN staffers grew frustrated by increased
political commentary, including from ESPN executives during the
presidential election, and worried about #BoycottESPN hashtags cropping
up on Twitter. “Our viewers turned to us for sports,” said Jay Crawford,
a longtime SportsCenter host who was laid off a year ago. “Realizing
there’s never been a time in my lifetime where our country has been more
divided, I saw no value in adding to that division.”
Conservative ESPN staffers grew frustrated by increased
political commentary, including from ESPN executives during the
presidential election, and worried about #BoycottESPN hashtags cropping
up on Twitter.
Mark Shapiro, who helped pioneer debate shows at ESPN
and is now co-president of media conglomerate WME-IMG, said, “there was
too much emphasis on talking heads and fiery opinions and less on
breaking news and analysis.”
Tensions boiled over with the controversy over Ms. Hill
in September. At their meeting, Mr. Skipper asked pointedly if Ms. Hill
thought it fair to paint colleagues who voted for Donald Trump with a
broad brush as white supremacists.
“No, but I do think that they have the benefit of privilege,” Ms. Hill responded.
Several ESPN employees later told Mr. Skipper that Ms.
Hill should have been suspended for her Trump tweet because she violated
the company’s social-media policy.
Several ESPN employees later told Mr. Skipper that Ms.
Hill should have been suspended for her Trump tweet because she violated
the company’s social-media policy.
“To me it was clear-cut that these are areas to stay
away from regarding racial topics, religion, sex orientation, politics,”
said Tim Legler, an ESPN basketball analyst and 17-year company
veteran.
Weeks later, Mr. Skipper suspended Ms. Hill when
she used Twitter to urge a boycott of Dallas Cowboys advertisers after
the team’s owner had suggested benching NFL players who staged
social-justice protests during the national anthem. ESPN determined that
was detrimental to the company, as ESPN shared some sponsors with the
Cowboys, people familiar with the situation said. In February, Ms. Hill
left SportsCenter to write for ESPN’s “The Undefeated” website.
Ms. Hill’s supporters said critics often conflated
“politics” with hearing diverse viewpoints from women and people of
color that Mr. Skipper promoted on air. “More minorities at ESPN with
strong voices” has “evidently made some people bothered,” said on-air
host Dan Le Batard on his show a year ago.
On Wednesday, the NFL said it would require players to stand during the national anthem and
would fine teams if they don’t comply. The decision was debated on ESPN
shows like “First Take” and “SportsCenter,” including with references
to President Trump’s distaste for such protests. Ms. Hill tweeted, “Me, trying to find any NFL owners with common sense.”