OT-ESPN layoffs out of the blue.

[noeynox]

Spending too much on the ACC it seems. Too bad.
http://deadspin.com/source-espn-laying-off-hundreds-509043249

 

[Jimdish255]

Everybody should be getting a raise based on the conference tag sale they just re-sold themselves. I hope Disney got the stock bump they were aiming for and the executives get to keep their bonuses. Buy assets, cut jobs, get raises.

 

[CL82]

This article details the CT tax breaks they receive. It's much more than the $17M that gets bandied about here. COURANT

Take aways.
- Even though they are laying off 100 they still met their obligation to create 200 so they get the tax break. So did they create 300 and layoff 100 for a net 200 or did they create 200, and layoff 100 for a net 100??

- the network has received more than $100 million in Connecticut state tax breaks in the last dozen years.

- In August, 2011, ESPN reached a deal with the state for a $17.5 million, partly forgivable loan as it adds those jobs.

- ESPN also receives a permanent, $15 million-a-year tax break with the state under an expansion agreement reached in 2000.

- In addition, the network had received $50.3 million for digital infrastructure development through the state’s film and digital tax credit program as of last fall.

Wow, that's a lot to keep Connecticut taxpayer money to keep track of. It's amazing they had time to gut the Big East and seriously jeopardize Connecticut Athletics.

 

[minidarren]

Holy crap its crazy. Just a sign of the times I guess. Until someone steps up and does something its just going to continue to snow ball out of control. I have no idea what the solution is.

 

[CL82]

Holy crap its crazy. Just a sign of the times I guess. Until someone steps up and does something its just going to continue to snow ball out of control. I have no idea what the solution is.

Make it a campaign issue. Write letters to the editor - no more tax breaks for the company that nearly killed UConn Athletics. Call your state legislators.

 

[upstater]

This article details the CT tax breaks they receive. It's much more than the $17M that gets bandied about here. COURANT

Take aways.
- Even though they are laying off 100 they still met their obligation to create 200 so they get the tax break. So did they create 300 and layoff 100 for a net 200 or did they create 200, and layoff 100 for a net 100??

- the network has received more than $100 million in Connecticut state tax breaks in the last dozen years.

- In August, 2011, ESPN reached a deal with the state for a $17.5 million, partly forgivable loan as it adds those jobs.

- ESPN also receives a permanent, $15 million-a-year tax break with the state under an expansion agreement reached in 2000.

- In addition, the network had received $50.3 million for digital infrastructure development through the state’s film and digital tax credit program as of last fall.

Wow, that's a lot to keep Connecticut taxpayer money to keep track of. It's amazing they had time to gut the Big East and seriously jeopardize Connecticut Athletics.

Deadspin has a lot more on his in terms of inside scoops. Apparently, they just built an incredible set ($150 million) for Sportscenter. I bet that's what the digital development stuff is about. ESPN is still shelling out hundreds of millions for more space and new buildings.

Also, they've entirely shut down some of the satellites they were building. Apparently, the Denver subsidiary was totally shut. Everyone was fired.

 

[huskymedic]

Deadspin has a lot more on his in terms of inside scoops. Apparently, they just built an incredible set ($150 million) for Sportscenter. I bet that's what the digital development stuff is about. ESPN is still shelling out hundreds of millions for more space and new buildings.

Also, they've entirely shut down some of the satellites they were building. Apparently, the Denver subsidiary was totally shut. Everyone was fired.

It's also a shift to other locales... Finnebaum's new show will be out of Charlotte - not Bristol.

 

[upstater]

It's also a shift to other locales... Finnebaum's new show will be out of Charlotte - not Bristol.

But Charlotte is supposed to house the production teams for college sports down south. So that makes sense. (Although I don't know what Feinstein's specialty is--college bball?).

It seems a natural that they would have production down there for the SEC, and when the ACC comes on board in 10 years, all their college sports production will be run out of Charlotte. There is hardly anyone left up north anyway.

 

[huskymedic]

DRUNKHULK 3:56pm via Web
ESPN LAY OFF HUNDREDS OF PEOPLE! YOU FIGURE AT LEAST ONE PERSON AT TELEPATHY NETWORK WOULD SEE THIS COMING!

 

[upstater]

Holy crap its crazy. Just a sign of the times I guess. Until someone steps up and does something its just going to continue to snow ball out of control. I have no idea what the solution is.

Are you talking about people being replaced by technology? It's going to get worse, no? That's how it's all trending.

 

[uconn_jack]

Well, with the way this liberal, tax happy, regulatory sinkhole of a state has driven away businesses and manufacturing, they have to do something to keep the few that are left (e.g., ESPN) in CT, like tax breaks. I don't like what has happened with CR any more than anyone else, but putting too much pressure on ESPN is not worth the risk of them potentially packing their bags and leaving (and they WILL call our bluff if we do).

 

[huskypantz]

Wow, my cousin's husband just took an IT contract position with ESPN a few weeks ago. That stinks.

OTOH, I work for a fairly large healthcare company - and for us, layoffs are a bimonthly occurrence. And with more obamacare cuts coming in June, we expect more trimming of fat off an already skinny corpse.

 

[CL82]

Well, with the way this liberal, tax happy, regulatory sinkhole of a state has driven away businesses and manufacturing, they have to do something to keep the few that are left (e.g., ESPN) in CT, like tax breaks. I don't like what has happened with CR any more than anyone else, but putting too much pressure on ESPN is not worth the risk of them potentially packing their bags and leaving (and they WILL call our bluff if we do).

Like a lot of things. it is about math. Huge CT investment = huge disincentive to move. They aren't going anywhere, unless someone can given them tax incentives that outweighs scrapping all that. Any move is unlikely.

 

[uconn_jack]

Like a lot of things. it is about math. Huge CT investment = huge disincentive to move. They aren't going anywhere, unless someone can given them tax incentives that outweighs scrapping all that. Any move is unlikely.

Which I am sure some (probably southern) state would do if CT started pressuring ESPN/Disney and pulling their incentives and started them shopping.

 

[upstater]

Which I am sure some (probably southern) state would do if CT started pressuring ESPN/Disney and pulling their incentives and started them shopping.

It's been mentioned a million times on this board, but the plant in Bristol is worth billions on many acres. The new Sportscenter digital studio building itself that just went up cost $125 million. They have plan for much more. And the further away from NYC they move, the more difficult it becomes for them with the media eye.

 

[IMind]

They aren't going anywhere... they've got billions in existing infrastructure and they're within spitting distance of NYC and Boston... and have easy direct flights to most major pro markets from the huge number of very close airports. If they were moving they would have moved south as soon as Disney bought them.

 

[CL82]

Which I am sure some (probably southern) state would do if CT started pressuring ESPN/Disney and pulling their incentives and started them shopping.

I think you are sure about that because you don't have a handle on the math. It would need to be an enormous number. It wouldn't make sense. Not only does ESPN need to get a decent ROI for abandoning their campus, but the state would have to get one for making the investment. There are plenty of other reasons why they won't do it but this tiny slice is enough to kill any move. It won't happen in the near term.

 

[noeynox]

Saw a tweet today that the layoffs are in part to the cost of their recent investment in the SEC. I guess these outlandish contracts being given to college programs have a human price somewhat.

 

[uconnell]

Where is ZLS?

 

[Vowelguy]

Take aways.
- Even though they are laying off 100 they still met their obligation to create 200 so they get the tax break. So did they create 300 and layoff 100 for a net 200 or did they create 200, and layoff 100 for a net 100??

While I don't know the details here, these deals are usually structured so that the company needs to maintain the net increase in employment for a certain period of time to get the $.

 

[Vowelguy]

Saw a tweet today that the layoffs are in part to the cost of their recent investment in the SEC.

A silly statement. Money is fungible; you can't point to any specific item being responsible for cuts. You could just as easily say it was because of their deal to broadcast the tennis US Open.

 

[huskymedic]

ESPN feels the heat from Connecticut politicians following layoff reports:

Story: http://www.nhregister.com/articles/...519ba09ae20a1179257441.txt?viewmode=fullstory

Editorial:
http://www.nhregister.com/articles/...519c00c3367c3594702454.txt?viewmode=fullstory

 

[CL82]

So much for ESPN pulling up stakes:

The so-called “claw-back” measures would be triggered if the company fails to meet its job creation requirements or relocates out of state within 10 years, Doba said. But neither Doba nor Watson would say what specific penalties would be invoked against the company if it violated either of those provisions.

My hat is off to this commenter:

Well, it won't be too much longer before it's quite clear that the idiot Governor's First Five and economic incentive programs were a complete and total waste of several hundred million dollars of the taxpayers' money. Instead of trying to buy a few jobs for absurd amounts (all while other jobs were fleeing the state), the idiot Governor might have cut state spending, reduced tax rates, eliminated senseless and counter-productive regulation and actually attracted business to Connecticut. Unfortunately, the idiot Governor does not understand the first thing about business - and why would he? He's spent his entire adult life taxing-and-spending; he's never worked a minute in any business with profit and loss responsibility. He's never managed anything, he's never had to make a payroll and he's never produced a product or provided a service of any kind. He lives in the liberal world of unicorns and fairy dust, where equality, justice and prosperity for all is just one tax increase away. We're doomed, folks.

 

[upstater]

So much for ESPN pulling up stakes:


My hat is off to this commenter:

Same schtick we've heard for 5 years. Lack of regulations sucked a big hole in the economy with robbers on Wall Street absconding with pensions, and it's suddenly regulations that are hurting us. Not scams and stealing at the highest level.

 

[huskyjawz]

ESPN Layoffs Are A Sign The Channel's Worst Nightmare Is Finally Coming True


http://finance.yahoo.com/news/espn-layoffs-sign-channels-worst-184154714.html