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Thread: Turner Broadcasting planning layoffs in advance of rising NBA rights fees

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    Default Turner Broadcasting planning layoffs in advance of rising NBA rights fees

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    Report: Turner Broadcasting planning layoffs in advance of rising NBA rights fees

    Turner Broadcasting and Disney-owned properties ABC and ESPN exclusively share the national television rights to broadcast NBA basketball, and Turner wants to make sure that they keep their standing in this very lucrative partnership.

    In advance of negotiations with the league on fees that are expected to soar in the next deal, Turner has reportedly planned layoffs in order to have the necessary cash on hand to pay whatever renewing the contract will cost.

    From Darren Heitner of Forbes:

    According to the New York Post, Turner Broadcasting is preparing to let go of roughly 550 employees in order to have enough money on hand to pay for an expected increase in NBA media rights fees. The current media rights agreement with the aforementioned television networks is set to expire in 2016. Rising rights fees, along with costs to broadcast more original programming, are predicted to lead to the layoffs at Turner owned TNT, TBS, CNN and truTV.

    An internal memorandum circulated within Turner and dated August 19 reveals that the job cuts may be completed over the next two months.

    “Information negotiations” concerning the NBA’s next media rights deal began in Summer 2013. At the time, it was projected that a new deal would not be completed until Adam Silver took over the Commissioner position from David Stern. Silver is now firmly established as NBA Commissioner. The fact that Turner is seeking to move rather quickly in laying off a significant number of employees may be a sign that a new NBA media rights deal is forthcoming.

    The current deal is worth more than $900 million per year to the league, but the next one could see those fees doubled.

    Players are also planning for a new TV deal, in the form of signing shorter free agent contracts to wait and see how things play out. LeBron James is perhaps the most high-profile example, but others like restricted free agents Greg Monroe and Eric Bledsoe are considering playing under a one-year qualifying offer, in order to maximize their earning potential as the salary cap continues to rise in the seasons to come — something that is directly influenced by league revenue, which a new rights deal would help to dramatically increase.

    TNT televises games on Thursday nights weekly throughout the season, and also chips in on the league’s bigger days on the schedule, which include the Christmas and Martin Luther King Jr. holidays. The company also shares in broadcasting the playoffs, all the way through to the Conference Finals, before ABC takes over exclusively for the NBA Finals.

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    Default Re: Turner Broadcasting planning layoffs in advance of rising NBA rights fees

    The rich get richer and the poor get poorer. Sounds like business as usual.

    Sad for the folks who will have to scramble to find meaningful employment
    elsewhere.


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    Default Re: Turner Broadcasting planning layoffs in advance of rising NBA rights fees

    It would be nice if the league called Turner and said that the rights fees would not go up so much if it meant people keeping jobs, but of course it will not.

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    Default Re: Turner Broadcasting planning layoffs in advance of rising NBA rights fees

    Quote Originally Posted by SycamoreKen View Post
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    It would be nice if the league called Turner and said that the rights fees would not go up so much if it meant people keeping jobs, but of course it will not.
    Or Turner could just not fire people that otherwise wouldn't have jobs if Turner didn't have an NBA contract. Broadcasts are gonna suffer because of it, same way Gannett keeps "offering" early retirement to anyone over 40 and now the Star has Candace, Tully, and a bunch of kindling.

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    Jimmy did what Jimmy did Bball's Avatar
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    Default Re: Turner Broadcasting planning layoffs in advance of rising NBA rights fees

    The NBA is not worth what it is paid but that doesn't stop the contracts from spiraling out of control because these companies tell themselves there's a halo effect having these contracts so they bid more and more against others who think the same thing. So, ultimately nobody is bidding based on the money the NBA can bring via commercials,etc. but instead for something far less tangible - perceptions.
    And if you were talk to them and ask them to show you on the books as to what this halo effect is actually worth to them on the bottom line they'd probably tell you "It's hard to put it in those terms".

    And so it goes...
    Nuntius was right. I was wrong. Frank Vogel has retained his job.

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    Default Re: Turner Broadcasting planning layoffs in advance of rising NBA rights fees

    Hopefully Reggie is one of the layoffs. I love ya Reg, but this is for your own good.

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    Default Re: Turner Broadcasting planning layoffs in advance of rising NBA rights fees

    Also, we should all hope that NBC can carve out a deal where they at least get to broadcast a few NBA games. Bring back the theme song! John Tesh, Roundball Rock, whereyouatttttt

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    Default Re: Turner Broadcasting planning layoffs in advance of rising NBA rights fees

    Quote Originally Posted by cdash View Post
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    Hopefully Reggie is one of the layoffs. I love ya Reg, but this is for your own good.
    I agree that Reggie is far from a good announcer, but I still can not root against Reggie when it comes to anything. Maybe I am a bit insane in this respect, but he was my absolute idol during my formative years.

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    Default Re: Turner Broadcasting planning layoffs in advance of rising NBA rights fees

    CNN is laying off people to, so I don't think it's entirely related to the NBA. Viewership is more than likely down.

    My wife is worried about her job at CNN Espanol (though I think she's fine), but it seems like they are trying to push people with 10+ years of experience or over the age of 55 out the door. Their compensation package for those willing to leave is pretty impressive. Something like 6-9months of pay and then additional % of your salary for every year you've been with the company.
    Lance + Starting SG = Awesome

    Now really free Lance!

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    Default Re: Turner Broadcasting planning layoffs in advance of rising NBA rights fees

    Maybe I'm just cynical, but if Turner had identified 550 redundant employees then I think they were going lay them off anyway, no matter what happens to the price of NBA media rights. I mean, sackings happen all the time, for no better reason than to improve the bottomline. They easily could have saved money by cutting the bonuses that the senior management and directors receive, but you know and I know that's not going to happen.

    Blaming this on the NBA makes a nice story, but unless the NBA is saying "sack 550 people or you're not getting our business" then I don't see how it's really the NBA's fault.

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    Default Re: Turner Broadcasting planning layoffs in advance of rising NBA rights fees

    Quote Originally Posted by wintermute View Post
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    Maybe I'm just cynical, but if Turner had identified 550 redundant employees then I think they were going lay them off anyway, no matter what happens to the price of NBA media rights. I mean, sackings happen all the time, for no better reason than to improve the bottomline. They easily could have saved money by cutting the bonuses that the senior management and directors receive, but you know and I know that's not going to happen.

    Blaming this on the NBA makes a nice story, but unless the NBA is saying "sack 550 people or you're not getting our business" then I don't see how it's really the NBA's fault.
    Yep. They were going to make these cuts anyway, but this gives them a reason to do so that most people will buy. It's an opportunity that there PR people couldn't pass up.

    And I'm not mad at Turner for this. If they are willing to accept the risks associated with this cutback then that is fine. They should not have to employ people they don't need just because. But if these people actually served an important function there, then Turner will regret this move. Good employees are really hard to find.

    Also if you can't afford your own operations, how about you don't greenlight a show about a navy ship in the ocean. That has to cost more than it's pulling in.
    Last edited by MnvrChvy; 08-29-2014 at 12:54 PM.

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    Default Re: Turner Broadcasting planning layoffs in advance of rising NBA rights fees

    They are also expecting serious revenue increases because of the new contract or the rights fee's would not be going up. Thanks to the DVR live sports are becoming the most valuable programing, add in the younger demo that the NBA attracts and its a gold mine. So they might need to tighten the belt to get the new deal started but it will pay off big time down the road. Every business has to invest in things that cost them up front to make money down the road. If you do not do this your business dies. Its probably the most important lessen for any business owner constantly re invest or it will wither and die.

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    Default Re: Turner Broadcasting planning layoffs in advance of rising NBA rights fees

    Quote Originally Posted by Sparhawk View Post
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    CNN is laying off people to, so I don't think it's entirely related to the NBA. Viewership is more than likely down.

    My wife is worried about her job at CNN Espanol (though I think she's fine), but it seems like they are trying to push people with 10+ years of experience or over the age of 55 out the door. Their compensation package for those willing to leave is pretty impressive. Something like 6-9months of pay and then additional % of your salary for every year you've been with the company.
    No, CNN just has abysmal viewership that does not reflect the rest of the TV stations. Podcasts have higher viewership than CNN's highest rated shows.

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    Default Re: Turner Broadcasting planning layoffs in advance of rising NBA rights fees

    Blaming the NBA for Turner increasing their bid for broadcasting rights? Seriously? And this makes sense why?

    If anything, this is a PR leak by Turner to try and shame the NBA into accepting a lower bid.

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    Default Re: Turner Broadcasting planning layoffs in advance of rising NBA rights fees

    Quote Originally Posted by cdash View Post
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    Hopefully Reggie is one of the layoffs. I love ya Reg, but this is for your own good.
    If only he takes Shaq with him

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    Default Re: Turner Broadcasting planning layoffs in advance of rising NBA rights fees

    Quote Originally Posted by Basketball Fan View Post
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    If only he takes Shaq with him
    What a letdown Shaq has been on TV. I thought he would be great, especially with Barkley.

    I really liked when Webber was in the Shaq spot, and in general really like Webber's contributions to the NBA on TV, but for the love of christ do not let him be an analyst for Wizards games again. He was such a homer that entire series I wanted to punch him in the dick.

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    Default Re: Turner Broadcasting planning layoffs in advance of rising NBA rights fees

    Quote Originally Posted by cdash View Post
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    Also, we should all hope that NBC can carve out a deal where they at least get to broadcast a few NBA games. Bring back the theme song! John Tesh, Roundball Rock, whereyouatttttt
    And because NBCSN has done a great job with everything.

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    Default Re: Turner Broadcasting planning layoffs in advance of rising NBA rights fees

    Quote Originally Posted by PacersHomer View Post
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    And because NBCSN has done a great job with everything.
    Look, I only want that theme song. Let another network use it, I don't care. I just need that back in my life besides when it pops up on shuffle on my iDevices.

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    Default Re: Turner Broadcasting planning layoffs in advance of rising NBA rights fees

    Quote Originally Posted by cdash View Post
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    What a letdown Shaq has been on TV. I thought he would be great, especially with Barkley.

    I really liked when Webber was in the Shaq spot, and in general really like Webber's contributions to the NBA on TV, but for the love of christ do not let him be an analyst for Wizards games again. He was such a homer that entire series I wanted to punch him in the dick.
    yep, he (webber) was seriously, seriously bad during the playoffs. truly irritating. he shouldn't do any wizards games.

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    Default Re: Turner Broadcasting planning layoffs in advance of rising NBA rights fees

    Quote Originally Posted by clownskull View Post
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    yep, he (webber) was seriously, seriously bad during the playoffs. truly irritating. he shouldn't do any wizards games.
    Just to be safe, we probably shouldn't let him do any Kings games, either. Assuming they ever get good again and make it on TV, that is.

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    Default Re: Turner Broadcasting planning layoffs in advance of rising NBA rights fees

    Quote Originally Posted by cdash View Post
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    Just to be safe, we probably shouldn't let him do any Kings games, either. Assuming they ever get good again and make it on TV, that is.
    If there are Kings games going to be covered its going to involve Shaq and C-Webb since Shaq actually owns a stake in the Kings

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    Default Re: Turner Broadcasting planning layoffs in advance of rising NBA rights fees

    I even noticed that he was being negative towards the Pacers in the Atlanta series. Maybe it was not as much about Washington and more about him disliking the Pacers, although I am not sure why. It probably had to do with the collective media taking a dump on us due to our late season swoon and CWebb just piling on.

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    Default Re: Turner Broadcasting planning layoffs in advance of rising NBA rights fees

    Quote Originally Posted by joew8302 View Post
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    I even noticed that he was being negative towards the Pacers in the Atlanta series. Maybe it was not as much about Washington and more about him disliking the Pacers, although I am not sure why. It probably had to do with the collective media taking a dump on us due to our late season swoon and CWebb just piling on.
    To be fair, we kind of earned it. The collapse in the second half of the season, rumors of infighting on the team, and the nearly catastrophic Atlanta series made us a huge, easy target for criticism.

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