ESPN announces layoffs as part of Malloy’s “Jive Five” Economic Development Program

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The Urban Dictionary defines “jive” as a “colorful form of speaking” that is “sometimes hard to follow.”

In the real world here is how it works;

On August 2, 2011 Governor Dannel P. Malloy announced that, in return for creating 200 new jobs over the next five years, the taxpayers of Connecticut would give ESPN $17.5 million toward the construction of a new building and at least $300,000 to train the new workers.  Malloy explained, “ESPN’s needs are not going to be ignored.”

That corporate welfare package brought the total Connecticut taxpayer support for ESPN to over $100 million in state tax breaks and grants over the past twelve years.

Then yesterday, May 20, 2013, The Wall Street Journal reported that ESPN, “was in the process of laying off a few hundred workers… a sign that the hugely profitable sports cable-TV powerhouse is responding to the rising fees it pays to air games as well as other changes in the media industry…ESPN said some of the job cuts are coming through attrition, or unfilled open positions, and didn’t disclose the precise number or types of workers who are being let go.”

Associated Press added, “ESPN is cutting its workforce, the latest Disney division to reduce staff…’We are implementing changes across the company to enhance our continued growth while smartly managing costs,’ the sports media giant said in a statement Tuesday. ‘While difficult, we are confident that it will make us more competitive, innovative and productive.’”

The AP explained that the ESPN layoffs follow 300 layoffs that occurred at LucasArts and LucasFilms after Disney acquired the companies for $4.1 billion.

As AP noted, “Still, Disney has been on a roll financially, beating or matching earnings per share estimates for the last eight quarters. After it reported a 32 percent gain in net income for its fiscal second-quarter earnings two weeks ago, more than a dozen Wall Street analysts raised their price targets on Disney stock to an average of nearly $72.”

So in essence, despite being an extraordinarily financially successful subsidiarity of an extraordinarily, financially successful company that is doing extraordinarily financially well in this extraordinarily financially successful Wall Street market, ESPN accepted almost $20 million in scarce taxpayer funds and promised to create 200 jobs but is now intentionally keeping vacancies open and laying off Connecticut residents, so that it can appear even more extraordinarily financially successful.

Despite this development, according to the Hartford Courant, when asked about it, a spokesman for the Malloy administration said that ESPN will not be forced out of the First Five program as a result of its layoff plan because it is still intending to add at least 200 jobs during the period starting in August, 2011 when the Governor gave them the public funds.

Meanwhile, the Connecticut General Assembly continues to consider major cuts to some of the most significant and vital human and healthcare services.

Now if that jive is not a “colorful form of speaking” that is “sometimes hard to follow,” I don’t know what is.

  • buygoldandprosper

    Dan Malloy has violated his fiduciary responsibility with the program that he initiated. It was nothing more than a way of buying votes with public funds. He gave it a fancy name and a noble goal but Dan might as well have been passing out Benjamins outside polling places. Hey! It got him his winning votes in Bridgeport!
    Most studies show that this nonsense Dan has embraced is a shell game with the losers being the taxpayers. Some states, like Texas, play the game but the difference is that they pay with cash on hand, not with long term debt!
    Dan has squandered a great opportunity to turn Connecticut into a state employers would stay in or come to without acting like high-paid hookers. He had a complaint legislature and a central government eager to turn around a stagnant economy.
    Instead, Dan chose a course of action all about Dan.
    Dan Malloy’s Connecticut…how revolting.

  • Striking

    Malloy’s corporate welfare was rather short on vision, unless he’s talking the first five corporations to cut its workers loose.