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Let me start by saying this. I absolutely hate corporate mergers, shareholder meetings and internal politics. If this didn’t directly affect hockey, I would be gleefully ignoring all of it. When I mention “politics…, it is specific to the ESPN situation and its parent company. There was a comment on one of my last articles that there are serious issues being debated and that is absolutely true. For the sake of a hockey blog, I’m sticking just to the “political battle… that is bandied about in the space of this one company. I am going to mention a second issue (not mentioning the company) that also affects sports in general.
Here’s what happened with ESPN. While sitting at the feet (virtually) of a literal genius in these matters, it was briefly mentioned that ESPN is moving more and more to streaming. Many of you aren’t big fans of streaming (at least vocally). This coincides with the layoffs coming soon (Disney just announced another 2500 cuts). On air talent is said to be targeted for June on ESPN. My personal opinion (that’s all this part is) is that “the volume… (made for Star Wars IPs, it looks like a living set) could easily replace most of ESPNs actual sets, camera operators, and other positions. That’s a statement of sadness. Worst case scenario is a full move to streaming. I did not know that cable cancellations were as bad as they are becoming. I knew they were bad.
So, brace for that. We still don’t know Bally’s fate. Here’s the sponsorship news. A major sponsor across nearly all sport platforms is down 110 million in sales YTD and lost 15billion in market share. Some of you already know who, but I’m not going to get into it. A JP Morgan analyst expects a 13% decline year over year for the next couple years. Anyone who’s owned a business knows that advertising is one of the first “cuts…. This would not be a good time to lose a major ad partner.
In finality, just like we saw personalities disappear when NBC and the NHL parted ways, broadcasts could look vastly different. Detroit is in a unique situation. A major “sponsor… for the Red Wings is a company that benefits from hard financial times and a reduction in seated dining. Little Caesars pizza had no contact pickup ready to go, and continue to be able to function in smaller retail space with a lower price tag than many competitors. A “hot and ready… is actually cheaper than some of the frozen pizzas at our grocery store.
Montreal, Toronto, New York (Rangers) and in my opinion Detroit are better poised due to sponsorship stability (Montreal and Toronto), Huge fan bases and brand recognition. I’m bracing for the news after June 1. I will present it as best I can without dragging very combustible issues into the fray. Part of me had hoped that there would be a “level off… with streaming but it looks like a double down. ESPN is making changes as its parent company prepares for a lot of new debt while Hulu is merged into a single entity. Just keep your eyes open and once the path forward is clear we’ll figure out the landscape and find a way to function.