Firings, Hirings, and Assets…

Over the past few months, ESPN has fired several on-air personalities and brought on some new ones.

Casual observers think it’s simply that the fired people are no good, and the hirings are people who are simply better at talking on TV. This could not be further from the truth.

Let me tell you what’s really going on, and give you a business lesson that can benefit you right now.

The people fired from ESPN were on-air talent. These are people who come to the studio, talk to the camera, share their opinions and insights, and go home when the cameras turn off.

Their value was based on being connected to ESPN.

ESPN provided the audience and the attention, and they benefited from it.

The longer they were there, the more money they commanded. Disney (who owns ESPN) was looking to save money.

When this happens in the corporate world, who gets fired first?

The employees earning the most money.

They get replaced with younger and cheaper talent.

The people recently brought in are those who have already built audiences outside of ESPN. ESPN brought them in to access not only the personalities, insights and opinions, but the audiences that they bring with them.

If you’re not catching on, let me make it simpler and say it slower.