$400 Million In ESPN Ad Revenue At Risk As Bowl Games Risk COVID Cancellations
As one headline after another breaks that the new Omicron Covid variant looks more and more like the common cold, businesses still have very serious amounts of money at risk thanks to overbearing “Covid protocols” being forced down everyone’s throat (and up their noses).
The latest example is Disney’s ESPN, which has as much as $400 million in college football playoff advertising at risk hanging in the balance of a series of Covid tests, which will ultimately determine which College Football Bowl Games will be played and which will be cancelled.
The Hawaii, Military and Fenway bowls have all been cancelled already, Bloomberg reported this week, as a result of surging Covid cases. Playoff organizers are also taking steps to determine whether or not the national championship game can be played this year.
ESPN told Bloomberg: “We are working closely with the College Football Playoff and other bowl organizers and are confident in the health and safety plans they have in place for the games to be played as scheduled.”
Post-season college football brings in between $350 million and $400 million in ad revenue annually, the report says. Revenue was up about 8% from 2013 to 2018.
The threat to ad revenue comes at the same time traditional broadcasting names and cable providers are dealing with the threat of streaming services. Last year’s national championship game had 27% less viewers than the year before.
ESPN is responsible for about $12 billion in annual revenue and $4.3 billion in EBITDA for Disney.
Wed, 12/29/2021 – 13:31