The importance of the Michigan game.

[J187Money]

Why exactly should ESPN do anything other than create shareholder value?

 

[formerlurker]

Why exactly should ESPN do anything other than create shareholder value?

Obamacare?

 

[whaler11]

Why exactly should ESPN do anything other than create shareholder value?

They should not and ESPN drives Disney's earnings.

In theory one could argue that their thousands of sport fan employees would appreciate having big time sports available locally.

This is the theory by which Aetna owned a professional hockey team. They wanted to make Hartford more attractive to employees. Even at the end Aetna went out of their way to save the team.

ESPN still held NHL rights in the 90's and could have easily kept Hartford in the league. ESPN could easily get UConn invited to a 'Big 5' league.

ESPN has Connecticut by the balls, they take the state subsidies but every employee that isn't from the local area hates Bristol and the state. Connecticut is ESPN's bitch and they go out of their way to keep Connecticut in it's place.

 

[Palatine]

Why exactly should ESPN do anything other than create shareholder value?

Shareholder value is created by good relations with the state government which has already helped the bottom line with millions in tax breaks.

What's not to understand?

 

[J187Money]

Shareholder value is created by good relations with the state government which has already helped the bottom line with millions in tax breaks.

What's not to understand?

Is that a serious comment?

 

[Palatine]

Is that a serious comment?

Now you're strutting your ignorance. You really don't understand this?

 

[J187Money]

Disney shareholders somehow care what the relationship is between. ESPN and the state of CT?

 

[Palatine]

Disney shareholders somehow care what the relationship is between. ESPN and the state of CT?

They should.

If you don't understand the leverage that the State of Connecticut has with ESPN, then you have never conducted business on a serious level. ESPN's recent digital expansion was coordinated with the state of Connecticut which put certain tax breaks in place to facilitate the expansion. The relationship between the two entities is large and complex. It definitely has an affect on ESPN's bottom line.

Both entities have a vested interest in helping each other.

 

[J187Money]

They should.

If you don't understand the leverage that the State of Connecticut has with ESPN, then you have never conducted business on a serious level. ESPN's recent digital expansion was coordinated with the state of Connecticut which put certain tax breaks in place to facilitate the expansion. The relationship between the two entities is large and complex. It definitely has an affect on ESPN's bottom line.

Both entities have a vested interest in helping each other.

Do you know how much the tax breaks are? It total and on a yearly basis? I'm not saying they don't matter, but since the "media networks" side of Disney had an operating profit of $6.6B in 2012, I'm not sure that it matters to the investors. In fact, the only mention of the facilities in the 10-K at all is the two required lines in the disclosure around properties, which also show that the ESPN facilities are amongst the smallest of the Disney properties in the US.

http://www.sec.gov/Archives/edgar/data/1001039/000119312512479027/d405160d10k.htm

Given the fact that they didn't need to disclose any of the "breaks" given them by the state of connecticut means they weren't material. And if the shareholder cannot see them because they aren't material, they can't care about them either.

(and yes, I've conducted business on a serious level - serious enough to know when numbers like 10 or 20M (or whatever the numbers are) aren't material no matter how big they seem to your average taxpayer)

 

[J187Money]

Explain to me given the numbers above how this isn't more than a rounding error to Disney?

In support of ESPN’s capital investment and the commitment to retain and create full-time jobs in Connecticut, the state will provide:

• A 10-year, $17.5 million loan from the Department of Economic and Community Development (DECD) for the construction of the facility and the creation of at least 200 jobs.
• Up to $1.2 million to fund a job training grant program ranging from $300,000 for 200 jobs created to $150,000 for each additional 100 jobs created up to 800 jobs. Job training will be developed based on ESPN’s needs.
• The Connecticut Development Authority may also assist with up to $6 million in sales use tax exemptions on capital equipment and construction materials.

http://www.governor.ct.gov/malloy/cwp/view.asp?Q=484086&A=4010

 

[TouchdownHusky]

Has the date been confirmed yet? Hope it's the Thursday night before labor day weekend or only on ESPN3

Or the Friday night of Labor Day weekend. Great start to a holiday weekend. Something to jump start the weekend. And kids will be able to go (won't need to go to sleep early or do homework during the first couple of days of a new school year.

 

[Palatine]

Explain to me given the numbers above how this isn't more than a rounding error to Disney?

In support of ESPN’s capital investment and the commitment to retain and create full-time jobs in Connecticut, the state will provide:

• A 10-year, $17.5 million loan from the Department of Economic and Community Development (DECD) for the construction of the facility and the creation of at least 200 jobs.
• Up to $1.2 million to fund a job training grant program ranging from $300,000 for 200 jobs created to $150,000 for each additional 100 jobs created up to 800 jobs. Job training will be developed based on ESPN’s needs.
• The Connecticut Development Authority may also assist with up to $6 million in sales use tax exemptions on capital equipment and construction materials.

http://www.governor.ct.gov/malloy/cwp/view.asp?Q=484086&A=4010

That's just the Malloy first six (or whatever it is called). There are millions and millions that helped ESPN long before Malloy showed up.

It's more than a rounding error. Please.

 

[J187Money]

That's just the Malloy first six (or whatever it is called). There are millions and millions that helped ESPN long before Malloy showed up.

It's more than a rounding error. Please.

If it doesn't add up to 100M it ultimately will be a rounding error. And that's in a single year of couple of years.

Doesn't mean it doesn't matter to the line managers and whoever gets bonuses on segment P&L but Disney shareholders won't buy or sell the stock on it. Doesn't move the needle.

 

[ruskin]

UConn could turn the Rent into the second coming of (pick your favorite 80,000-plus-seat stadium) and have servants and a free tab for every Michigan fan and Big 10 visitor. None of that means jack. The people who run UConn see no problem taking us into this season and this game with a coach and offensive coordinator who are 0-2 against WESTERN Michigan. God bless the players and I hope for a miracle but this team's chances of winning aren't much better than UConn's were in 2001 when they played at No. 1 Miami. It sucks to say that, but unless GDL is completely gone, I'll take Michigan giving up 24.