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ESPN suffers layoffs after combining NFL network operations

ESPN suffers layoffs after combining NFL network operations

ESPN is making a new round of layoffs, most of which are related to the Disney-owned sports giant’s deal to take over NFL Network, according to a memo from president Jimmy Pitaro. Pitaro revealed the planned job cuts in a memo to staff Tuesday, a copy of which was obtained by Variety. In February, the

ESPN is making a new round of layoffs, most of which are related to the Disney-owned sports giant’s deal to take over NFL Network, according to a memo from president Jimmy Pitaro.

Pitaro revealed the planned job cuts in a memo to staff Tuesday, a copy of which was obtained by Variety. In February, the NFL acquired a 10% stake in ESPN, the result of a deal that made NFL Network and NFL RedZone part of ESPN’s operations.

“Over the past several months, we have made significant progress integrating the NFL assets we acquired into ESPN,” Pitaro wrote. “Throughout this process, we have taken the time to carefully evaluate our collective teams, resources and organizational structure to best position ourselves for the future. As a result, we have had to make some difficult decisions about the employment impact that we will communicate today.”

Pitaro’s memo continues: “While the majority of job impacts are related to the acquisition, today we will also notify colleagues in other parts of the company that their positions have been affected. We are committed to treating employees with compassion and respect and providing them with support as they navigate this transition.”

Pitaro did not detail the extent of the job cuts. ESPN declined to comment.

Among those being fired are veteran ESPN commentator Karl Ravetch, NFL Network reporter Tom Pelissero and NFL analyst Ryan Clark, the Athletic reported, citing anonymous sources.

Disney’s deal with the NFL has an estimated fair value of $3 billion, according to the media company’s quarterly 10-Q filing with the SEC in February. After July 2034, depending on the performance of the NFL’s assets, Disney may have the right to reacquire the NFL’s interest in ESPN in exchange for a 10-year guarantee at 70% of the then-fair market value of the NFL’s interest in ESPN. Alternatively, the NFL may have the right to acquire up to an additional 4% equity interest in ESPN at a purchase price equal to 70% of ESPN’s then-current fair market value.

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