Unpacking Stephen A. Smith’s $100 Million Megadeal: Is He Really Worth the Investment?

Richard Deitsch and Andrew Marchand write for The Athletic, sharing insights on sports media. In their latest chat, they dive into a hot topic: Stephen A. Smith’s new five-year, $100 million contract with ESPN, which allows him to continue his role on “First Take” and focus more on politics.

Deitsch: A well-known talent agent once told me about working with ESPN, saying, “You have to outsmart ESPN before they outsmart you because they will.” This came to mind when I saw your report on Stephen A.’s huge deal. Many readers might be shocked by the numbers, so can you explain why this contract is so significant and how ESPN views its investment?

Marchand: Some might argue no one should earn $20 million a year in sports media — but if anyone should, it’s Stephen A. Smith. Regardless of personal opinions about him, “First Take” thrives because of his charisma and leadership. His role drives tens of millions in revenue for the show. If he left, finding a replacement wouldn’t be easy or cheap. Shannon Sharpe is a name that comes up, and even he would demand a much higher salary if he took over full-time.

Also, Stephen A.’s recent political commentary might complicate things, but his dedication to ESPN cannot be ignored. Interestingly, during politically charged times under Trump, he largely stayed out of the conversation, sticking to the network’s expectations.

Deitsch: I believe everyone in sports media should maximize their opportunities, especially with how uncertain the industry is. I’m not so sure “First Take” would see a significant drop in revenue if different talent stepped in. The show could still thrive, perhaps with Sharpe and another host alongside him.

Jimmy Pitaro and Burke Magnus at ESPN have made it clear who the focal stars are, and Stephen A. is at the top. This raises questions about how this affects the internal atmosphere at ESPN. After speaking to various ESPN staff over the years, it’s clear that big salaries can spark feelings of jealousy. What do you think about how this news might be received within ESPN and the sports media landscape overall?

Marchand: Jealousy is definitely a factor, especially when Stephen A. often talks about himself. For those fighting for small raises, it can be frustrating. Yet, his role as a personality sets him apart from typical on-air talent. He’s in the business of attracting attention, which is where big money usually lands. Meanwhile, Pitaro and Magnus need to make choices that benefit the company as a whole. These enormous salaries can be questioned, but if someone wants to earn like Stephen A., they need to put in the work to gain that same level of attention.

Deitsch: Looking ahead, contracts in sports media will keep evolving, which is why many outlets have talent departments working on this. I don’t think Stephen A.’s deal will significantly alter the pay structure for others at ESPN. While top talent like him and Tom Brady will command large salaries, the industry is likely to continue downscaling, especially for non-front-facing roles. How do you see the future shaping up?

Marchand: In this increasingly digital sports media landscape, unique content will shine through. But if I were in ESPN’s shoes, I’d focus on maintaining a strong mid-level talent pool. Balancing star power with quality talent at every level is key to long-term success. ESPN needs to clearly define its brand. Yes, it’s about Stephen A., but a successful team needs more than one standout player.

(Photo: Paras Griffin / Getty Images)

Source link

Sports Business