Mark Shapiro: ‘Stephen A. Smith Draws Eyeballs’

Stephen A. Smith recently agreed to a five-year extension with ESPN that is reportedly worth at least $100 million, a contract that will keep him on the airwaves as a member of First Take and have him appear on network programming throughout the year. Smith expressed his gratitude for his colleagues at ESPN on the program earlier Friday and his excitement about remaining with the network for years to come. Mark Shapiro, the president of Endeavor Group Holdings, was involved in the negotiations as one of Smith’s representatives and spoke about the deal during an appearance at the MIT Sloan Sports Analytics Conference on Friday.

Shapiro explained that Smith is a synonymous presence with the network and that it is in his DNA. On top of him remaining on First Take, Shapiro shared that Smith will also be appearing on ESPN programming specifically around the NBA and hopefully more surrounding the NFL as well. Moreover, he explained that the deal also grants him the chance to continue spreading his wings in politics and news coverage as well. Contessa Brewer, a CNBC correspondent who was moderating the panel, remarked that media has become an ad-pressured environment with costs being scrutinized and was curious to know how ESPN would receive a return on investment in this deal.

“It’s really synonymous, or I should say analogous to doing a deal with the NFL,” Shapiro said. “When you are determining what rights you’re going to go after as a programmer, as a network, as a platform, you’re looking to those properties that bring you reach and engagement, that are good for your brand but also good for your business, and Stephen A. Smith draws eyeballs. He’s unique in that sense. There aren’t a lot of talent left these days on air that are of the unicorn ilk that he is.”

Shapiro explained that people watch to see Smith in the manner that they may tune in to view the NFL since they are a fan of the league. In fact, Shapiro remarked that Smith is polarizing, energetic, hard working and cuts through a variety of sports, going beyond a mere sampling.

“That audience at the end of the day is what is the foundation and fuels these businesses, and if a property is losing engagement or losing audience, losing viewership, losing attendance, maybe you’re selling,” Shapiro said. “But if you’re on the way up the way Stephen A. Smith is, the way the NFL is, the way I like to think the UFC and WWE are, then you’re buying.”

Earlier in the panel, Shapiro spoke about the evolution of sports television and how properties are moving towards streaming after growing on linear television. Despite recognizing that streaming is the future and a dwindling number of homes that receive pay television service, he defined the current state as straddling between the two. Shapiro feels that the ecosystem will be operating in this manner for a while and that companies have a proverbial “winning formula” if they have content that can be distributed on both platforms.

For example, WWE distributes its programming on both linear and streaming platforms through deals with Netflix and NBCUniversal for its Raw and Smackdown properties, respectively. Shapiro serves as the president and chief executive officer of TKO Group Holdings, which is the parent company of WWE and UFC, the latter of which is reportedly targeting remuneration of more than $1 billion per annum in its next media rights deal.

“Having the networks to get the big reach, the big audience, really capture the casual fans,” Shapiro said. “You see it across the board – NBA alike, your ratings are higher, your viewership is higher when you’re allowed to exercise broadcast, but you still need streaming to capture that younger audience and where the business is growing.”

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