Is Stephen A. Smith Worth $100 Million To ESPN?
Stephen A. is close to signing a $100 million deal at ESPN. So today we'll look at what goes into these contracts, including promotional appearances, sports betting fees, travel expenses, and more.
Stephen A. Smith is on the verge of signing a record-breaking contract extension at ESPN. After months of back and forth between his agents at WME and top executives in Bristol, ESPN’s most popular personality is close to finalizing a deal that will keep him at ESPN for at least five more years and pay him more than $100 million.
According to Andrew Marchand of The Athletic, who broke the initial story, Stephen A. Smith’s negotiation has centered around both five and six-year terms. So, the final contract would be worth $100 million or $120 million when it’s all said and done.
This is an astronomical number that many people could have never imagined. Smith is (obviously) incredibly popular and talented. However, a $20 million annual deal would make him the highest-paid talent in ESPN’s 45-year history, ahead of guys like Troy Aikman ($18M annually), Pat McAfee ($17M annually), and Joe Buck ($15M annually).
The idea of paying a sports TV host that kind of money would have seemed ridiculous even five years ago. Aikman and Buck represent ESPN’s $30 billion investment in Monday Night Football, and McAfee’s contract is a licensing deal, meaning he still pays all his production costs, including employee salaries and seven-figure guest fees.
On the other hand, Stephen A. Smith is essentially the opposite. “First Take” is the most-watched sports show on TV, but ESPN still makes most of its money off cable affiliate fees, and we all know people keep cable for live sports rights, not “First Take.”
But with that said, the devil is in the details, and some of the intricacies of Stephen A. Smith’s new contract could make this a no-brainer for the worldwide leader in sports.