ESPN Confirms That No Deal Is Close with a Sportsbook Operator

By Matt Speakman,
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Matt Speakman Betting Expert at online-gambling.com

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Last updated: December 10, 2022

In early October, ESPN reportedly looked close to partnering with DraftKings. However, nearly two months later, the sports broadcasting company confirms that it is nowhere close to striking a deal with the sportsbook. The deal is no longer imminent due to a change in leadership at the Walt Disney Company.

ESPN and Sports Content Chairman, Jimmy Pitaro, recently mentioned that no deal is imminent with a sportsbook operator. He mentioned this while speaking at a Manhattan conference. Pitaro’s comments were delivered before he headed for a Disney board meeting. The board meeting is the first for ESPN’s parent company, Walt Disney, since the return of Bob Iger to the CEO role. Bob Iger’s return as CEO coincided with the departure of Bob Chapek, the former CEO.

In the panel appearance that lasted for about 30 minutes, Jimmy Pitaro made it known that the company has had discussions with many major sportsbooks. However, he did not name any of them. Also, he didn’t answer how close ESPN was to striking a deal with DraftKings. Returning CEO, Bog Iger, will likely play a vital role in determining whether or not ESPN will progress with a comprehensive expansion plan on sports betting.

Conversations Between Bob Iger and Jimmy Pitaro Goes Beyond Business Matters

Being Disney CEO after Michael Isner in 2005, Bob Iger held the position till December 2021, after which he resigned and was replaced by Bob Chapek. However, Iger returned in late November after Chapek stepped down.

In 2018, Jimmy Pitaro was named ESPN president; in 2020, he was named chairman. The relationship Pitaro has with Iger is a longstanding one that dates back to when Iger was first named Disney’s CEO. Pitaro noted that he had a phone conversation with Iger a day before the meeting, but he did not mention if they spoke about the implications of a possible sports betting partnership.

The conversation between Iger and Pitaro often goes beyond business matters. Jimmy Pitaro noted that the two often talk sports, as they are both passionate sports fans. For instance, they both discussed about the University of Southern California (USC) ascent to the fourth rank in the College Football Playoff.

Disney’s Intersection with Streaming

Jimmy Pitaro’s conversation with Bob Iger took place on the same day that Disney mentioned in a regulatory filing that its CEO, Bob Iger, would initiate operational and organizational changes throughout the company. The business platforms in the company could see a new distribution approach as a result of this move.

As disclosed in an annual report with the United States Securities and Exchange Commission (SEC), ESPN+ had about 24.3 million paid subscribers as of October 1. This is a 42% increase compared to the previous year. During the fiscal year 2022, the average monthly income generated per paid subscriber increased to $4.80. In the previous year, it was $4.57.

Disney is anticipated to pay special attention to shifts in consumer behaviour from a DTC (direct-to-consumer) perspective since its streaming platforms struggle to make a profit. In 2021, Disney’s streaming services and online platforms lost about $4.01 billion, and ESPN+ incurred production and programming costs of more than $1.5 billion.