I took my kids to see Ant-Man & The Wasp: Quantumania on Friday. It is the latest blockbuster from Marvel, one of the crown jewels of Disney at the moment. The movie is…yikes! It’s not good.
The magic is clearly gone when it comes to the MCU, but that doesn’t mean Disney is done with superheroes. In fact, in light of the company’s restructuring earlier this month, I would guess Mickey Mouse and Bob Iger see superheroes as a more integral part of their future than live sports.
While I do not buy the theory that the company is actively trying to unload ESPN, the possibility it will happen at some point cannot be ruled out. Turning the network and its related businesses into its own division of the Walt Disney Company certainly makes such a move easier to complete if that ever becomes the plan.
So many of the theories and proposals I have read do not make sense to me. Trading all of ESPN for 33% of Hulu? Who would do that? Streaming video doesn’t make money. Live sports does. There is so much chatter though that it is worth thinking about the ramifications of an ESPN spinoff.
There is one question I keep coming back to. If ESPN is sold, what happens to ESPN Radio? What kind of buyer is a national radio network attractive to? Conversely, what kind of buyer would want ESPN but not want the headaches of courting and servicing affiliate stations?
The way I see it, there are three realistic possibilities for the future of ESPN Radio if Disney were to spin off the entire division. A new owner could hold onto everything else and divest the radio network, continue to operate the network, or the broadcast side could go dark while a new owner chooses to focus its audio offerings exclusively on podcasts.
Comcast has been mentioned as a potential destination for ESPN if Disney were to sell. It makes sense in terms of the television network. ESPN doesn’t just fill the hole left by the shuttering of NBCSN a few years ago. It kicks Comcast’s sports presence into a new stratosphere.
Remember that there was an NBC Sports Radio network at one point. NBC ran it themselves while Westwood One handled the distribution. It didn’t even last eight years before going dark. There is a SiriusXM channel that carries audio of Peacock’s sports shows, but I find it hard to believe that Comcast is looking to take on the challenge of running a full radio network again.
If ESPN Radio were to be spun off after an initial sale, it seems like there are two obvious options. The first is to sell directly to a large syndicator and license the ESPN name. Would Westwood One be interested? It could theoretically divest its interest in CBS Sports Radio to Audacy if it had to.
What if acquiring ESPN Radio were a growth play for a network that already knows what it is doing? MRN or PRN could make some sense. Maybe it is a move into the sports world. Would Salem be interested in a move like that? How about Dave Ramsey?
Another option could be to sell the radio network to a national radio group that already has a great relationship with the ESPN brand. Disney has worked with Good Karma Brands for years. Would Craig Karmazin want to add network operations to his portfolio? He has already taken over Disney’s O&O stations in New York, LA and Chicago. His company has also been selling inventory for ESPN Radio for years. Clearly, he is someone that believes in the product.
How about Bonneville or Townsquare? They could be options too if a new owner wanted ESPN but not ESPN Radio.
There is a third, less obvious option for an ESPN Radio spinoff after an initial sale. It may seem far-fetched at first but stay with me.
What about Jeff Smulyan? The man started the sports radio format and is now mostly out of it. It should be pointed out that on an episode of The Jason Barrett Podcast, Jeff noted that he still is the owner of the 98.7 FM signal in New York. If a company that purchased ESPN wanted to spin off ESPN Radio, wouldn’t it make sense to approach the owner of the network’s most important affiliate first?
Traug Keller is running media operations for Catholic-focused American Media. Tim McCarthy is leading the BFOA. Rick Cummings and Smulyan are thick as thieves. Sure, these guys are older, but they all have a history with the network, the format, and all have relationships with each other. If Smulyan were interested, there’s a strong circle right there of qualified minds capable to help him steer the ship.
Who would be a company that would not only want ESPN, but also would not want to give up ESPN Radio? I can only think of one obvious answer: Liberty Media.
The company has a pretty healthy sports portfolio. It owns the Atlanta Braves and Formula One. It also owns SiriusXM and Live Nation, which are not sports-related businesses themselves, but they do have some sports interests. ESPN would be a very logical addition.
Last year, Liberty sold off its interest in iHeartMedia. One could argue that is a sign that the company is not interested in the radio business, but ESPN Radio isn’t a gigantic collection of local stations. A network model fits what Liberty does well in sports media.
The final possibility to consider is the least pleasant of all, but it cannot be dismissed. If Disney sells ESPN, the new owner may have designs on staying in the audio business, just not the radio business. ESPN Radio could go dark as a broadcast network while several shows remain as podcasts and ESPN+ exclusives.
That would create some flexibility with the lineup. A guy like Mike Greenberg, who is already stretched pretty thin, wouldn’t have a hole that he needed to fill. Meanwhile, there is still a way to use someone like Chris Carlin or Amber Wilson and give multiple platforms to rising stars like Chris Canty and Harry Douglas.
An unfortunate reality is that if ESPN Radio loses the “radio” part and becomes a digital-only audio network, we’re likely going to see some staff reductions. Again, this is not the most pleasant outcome to think about, but it cannot be ruled out.
ESPN was, at one point, the most valuable property in the Disney portfolio. But that was back in the days when cable bundles ruled the entertainment world. Between cord-cutters and new economic models presented by a world of endless streaming options, the value of even the most-watched cable networks are not what they once were.
Live sports still matter more than anything else on television, so ESPN will always have value, but live sports will also always be expensive. Do you know what else is expensive? Theme parks, The Mandalorian, and animated movies. Disney is as much a part of the American zeitgeist as it is a part of the New York Stock Exchange and those things are the reasons why, not sports and certainly not sports radio.
Spinning off ESPN is not a certainty, but it is not far-fetched. If it happens, a new owner is going to take a long hard look at everything with the network’s name on it to determine what adds how much value. You can bet that ESPN Radio will be one of the first things under the microscope.
Demetri Ravanos is a columnist and features writer for Barrett Media. He is also the creator of The Sports Podcast Festival, and a previous host on the Chewing Clock and Media Noise podcasts. He occasionally fills in on stations across the Carolinas in addition to hosting Panthers and College Football podcasts. His radio resume includes stops at WAVH and WZEW in Mobile, AL, WBPT in Birmingham, AL and WBBB, WPTK and WDNC in Raleigh, NC.
You can find him on Twitter @DemetriRavanos or reach him by email at DemetriTheGreek@gmail.com.
