ESPN Allegedly Asking Radio Affiliates For $100K
Wednesday, March 11, 2009
ESPN Radio has been poking and prodding its way into a ton of local radio markets over the past few years, and now that they've developed somewhat of a stronghold, it appears it might come at a cost. Sports by Brooks is reporting, that Top 30 markets featuring ESPN's shows might soon have to be upwards of $100K for rights....
A source told me that ESPN is planning to charge some non-ESPN owned and operated sports radio stations fees to carry its radio network programming. For big markets (Top 30), the annual charge to stations is as high as $100,000.Whether or not ESPN actually IS going to ask for that kind of money is really irrelevant. The $100K gives local stations something that their own programming doesn't, and that's the simple business model of "out sourcing". Obviously there are a lot of other factors that go into rights deals like this, but in the end, $100K might be a small price to pay instead of the headache that comes with managing talent and programming on a day-to-day basis. Still though, local hosts make a heck of a lot less than $100K, so for a lot of markets it probably wouldn't make sense.
Even in good economical times, that move is a serious horse pill to ingest for local sports talk radio stations.
My reaction, as a former sports radio program director and on-air personality for 16 years (including on ESPN radio affiliates), is that very, very few (if any) Top 30 markets would pay a six-figure sum to air ESPN network programming.
Most, if not all of those stations make their money on local sports talk shows and play-by-play ad sales. Revenue from ESPN’s national properties is usually negligible - as most of its shows have struggled in the ratings against large market, local shows. (I know, not in every case.) Perhaps local stations could make money on ESPN Radio’s play-by-play properties, but not enough to make up that $100K rights fee in any scenario.
ESPN Radio is definitely not a market standard, but their current business model definitely could make sense on a case-by-case basis.
ESPN Radio Wants $100,000 From Local Affiliates (Sports by Brooks)
Labels: ESPN Programming, ESPN Radio, Sports Business, Sports Radio
4 Comments:
Yeah, seriously. My local affiliate (104.3 the Fan) will drop ESPN like a used wetnap and go with programs like Jim Rome and Dan Patrick who they can get for much less. Plus what do Mike and Mike even contribute to sports - they are likeable, but make no actual points. (I do like Cowherd sometimes though)
www.sundayhop.com
This is how I would respond if I was one of the radio stations:
Dear ESPN,
Go fuck yourself.
No doubt Dan Snyder would pay it to air that terrible crap in the DC market. He owns the station that carries ESPN Radio down here. I really wish he wouldn't pay it, but I know for sure he will.
pleaaaaase do it ESPN! bring back local sports talk!