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| Pat McAfee and Stepehen A Smith |
Hundreds of employees across Walt Disney Co. divisions, including on-air talent at ESPN and ABC, have been laid off in the latest round of cost-cutting, with prominent commentators Stephen A. Smith and Pat McAfee facing sharp internal and public blame for their massive contracts at a time of widespread austerity.
Smith, who recently signed a five-year, $100 million deal, and McAfee, who is reportedly nearing a contract worth more than $60 million annually, are accused of consuming a disproportionate share of resources at ESPN and ABC. Insiders say the deals have left little room for other talent as the company tightens its belt.
“It’s crazy what’s going on at ESPN,” a knowledgeable ABC source told reporters. “[ESPN chair] Jimmy [Pitaro] put all of his eggs in two baskets, and now every cut seems to be related to these salaries.”
The cuts have sparked widespread frustration inside the Burbank-headquartered company, where some have likened Smith and McAfee to “Ursula-like villains” draining resources from the Mouse House.
McAfee directly addressed the controversy during his show on Tuesday after former NFL star JJ Watt highlighted the optics. “Besides the fact that you’re getting $100 million, they’re taking everybody off the network. Did they keep anybody? Or is everybody fired to pay you?” Watt quipped, though many viewed the comment as voicing a broader sentiment.
McAfee acknowledged the narrative, saying he was “taking it on the shins.” He added: “The boys and I are very proud of the work that we have done. We hate any time this happens. Obviously, this is terrible. We don’t like that. But we are very honored that we are still partnered with ESPN and Disney for the good of sport and the future. I hate this.”
Smith drew additional scrutiny when he posted on Instagram lamenting Clark’s departure, raising eyebrows among company executives already sensitive to the backlash.
A Disney source pushed back on the criticism, noting that McAfee’s reported $60 million figure reflects ESPN licensing his fully produced show, which includes its own robust staff. The source compared the investments in Smith and McAfee to the network’s spending on major sports rights packages, such as NFL or MLB broadcasts, emphasizing their proven track records and value.
Despite the defenses, the layoffs have already strained other ABC programming. One unit particularly affected by the austerity measures is the long-running morning talk show “The View,” which has faced its own round of disruptions and budget pressures.
The situation underscores broader challenges at Disney and ESPN as the media giant navigates declining linear TV revenue, rising content costs, and shifting viewer habits in an increasingly competitive streaming landscape.