If rumors are anything to go by, ESPN seems to have relented to Stephen A Smith’s demand for a more lucrative contract extension deal. The analyst could possibly receive a five-year $120 million contract, which would be significantly higher than both Pat McAfee and Troy Aikman’s deals with the company. But how does his deal compare with Tom Brady’s 10-year, $375 million with Fox?
Advertisement
Joe Pompliano, while acknowledging that TB12’s number is significantly higher, stated that Tom’s deal gives Fox a right to refuse all new TB12 projects, appearance fees, and social media commitments. He then explained the nuances in both the contracts.
To start with both have similar added benefits and clauses to make them more lucrative for both the parties.
ESPN, and its parent company Disney, would use Smith’s presence to boost their revenues from commercials. Fox will also use Brady to attract advertisers to compensate for the billions they spent to procure the NFL streaming rights. But unlike TB12, Stephen A would be helping ESPN transition from TV to streaming platforms.
Owing to his popularity and massive presence online, Smith’s reach goes beyond that of the network. The Stephen A Smith Show is already a rage among fans on the internet. The analyst also delves into topics beyond sports. Having him would benefit ESPN far more than viewership numbers, claimed Pompliano.
Smith has been able to attract talents like Shannon Sharpe and Cam Newton, allowing the network to cut bait with some big names who were on bloated salaries.
“He’s proven his influence goes far beyond the reach of ESPN. Not to mention the fact that Smith is now involved in topics outside of sports. Smith isn’t growing just his own podcast either as he has helped bring in new voices to ESPN as well, adding guys like Shannon Sharpe and more recently Cam Newton,” added Pompliano.
So, it does not come as a surprise that he’s touted to get a bigger and better deal than some of the other stars of ESPN.
Smith could get a bigger deal than McAfee and Aikman
Stephen A’s rumored deal of $120 million for five or six years would be significantly higher than what McAfee earns with his five-year $85 million deal ($17 million a year). Aikman makes $18.5 million per year as part of his own five-year contract.
On the surface, Smith’s potential deal doesn’t seem too extravagant. However, there’s more to the story.
Aikman’s salary, alongside that of his broadcasting partner Joe Buck, pales in comparison to ESPN’s massive investment in Monday Night Football. And, McAfee’s deal operates as a licensing agreement and he has to cover employee salaries and guest fees from that money.
Smith, on the other hand, is neither a former athlete nor someone who had an established show when he joined the network. Instead, he rose to prominence as the host of First Take, one of their most popular sports TV shows. ESPN continues to generate revenue for it through traditional avenues, making Smith a great asset for the network.
The other advantages that Smith brings — from facilitating the transition from TV to streaming, to attracting a massive audience beyond the network and his ability to recruit new talent — gave him a huge bargaining power than former athletes like Aikman and McAfee.
Stephen A may be controversial, but it’s hard to deny that he has a pull and has emerged as the face of the network. ESPN has realized this, and though they are just rumors as of now, the network is likely to ensure Smith happily stays on board.
