ESPN and Stephen A. Smith are reportedly close on a new contract extension.
While Smith resisted that notion in a text with Andrew Marchand, The Athletic’s sports media insider reported that negotiations on a deal are in the six-year, $120 million neighborhood, meaning Smith would be making $20 million annually.
According to Marchand, should a deal be reached, ESPN will pay the vast majority of the contract, but Disney Entertainment and presumably ESPN BET will cover smaller parts. The report also confirmed that the deal includes a “first-look” development clause that would essentially allow Disney to have the right of first refusal for Smith-backed projects.
In his twice-weekly private email, ‘The Varsity,’ Puck’s John Ourand confirmed as much, writing that the Worldwide Leader will not be on the hook for Smith’s entire salary, even if he’ll be the network’s highest-paid star. According to Ourand, ESPN BET has committed to paying several million of Smith’s $20 million annual salary, and ESPN’s parent company, Disney, will also chip in an undisclosed amount.
While the specifics remain a bit fluid, including some unresolved issues that could delay the deal, according to Ourand, the general framework suggests that Smith will continue his prominent role on First Take while contributing to ESPN’s NFL and NBA coverage.
We already know it won’t be with Inside the NBA, though speculation has swirled about the future of the hit TNT show moving to ESPN.
Additionally, ESPN BET is looking to leverage Smith’s influence to help boost its brand. Smith has promoted PrizePicks on his own personal podcast and social media accounts while also being featured in multiple ESPN Bet commercials. ESPN Bet could conceivably pay Smith to promote Bristol’s betting platform exclusively as part of the deal.
It would be a bold move as ESPN Bet struggles to break through in a marketplace dominated by DraftKings and FanDuel, but it works for the television side of ESPN to offload some of Smith’s hefty salary to their betting outfit.
[Puck]
