1. Welcome to SportsJournalists.com, a friendly forum for discussing all things sports and journalism.

    Your voice is missing! You will need to register for a free account to get access to the following site features:
    • Reply to discussions and create your own threads.
    • Access to private conversations with other members.
    • Fewer ads.

    We hope to see you as a part of our community soon!

Rick Reilly had $3.4 million reasons to leave SI for ESPN

Discussion in 'Journalism topics only' started by DanOregon, Dec 11, 2007.

Page 2 of 4
  1. DanOregon

    DanOregon Well-Known Member

    The article also stated that SI was willing to go to $1.5 mill a year, but I think ESPN has more places to "sell" Reilly and get more use out of that abandoned set they built for Stephen A. Smith's show.
     
    DanOregon, Dec 11, 2007
    #13
  2. Frank_Ridgeway

    Frank_Ridgeway Well-Known Member

    I agree with those who say he's worth as much as he can get. But which do you think would make ESPN more of a pain in the ass -- one Reilly or 34 $100K beat writers spread among the top 10 markets?
     
    Frank_Ridgeway, Dec 11, 2007
    #14
  3. Mizzougrad96

    Mizzougrad96 Active Member

    It was insane when it was reported at $2 million... Reilly would have been worth that 10 years ago when he still cared...
     
    Mizzougrad96, Dec 11, 2007
    #15
  4. Double Down

    Double Down Well-Known Member

    The thing is Frank, I imagine in time, ESPN suspects it will have both. And it might be right.
     
    Double Down, Dec 11, 2007
    #16
  5. DanOregon

    DanOregon Well-Known Member

    Anybody know how ESPN contracts work? Are reporters/talent required to make X number of call-ins to ESPN radio and non-ESPN radio stations per week?
     
    DanOregon, Dec 11, 2007
    #17
  6. Elliotte Friedman

    Elliotte Friedman Moderator Staff Member

    Dan,

    If ESPN is willing to pay Reilly that kind of money, it's likely he had a lot of input into how much "other" stuff he must do.

    Good for him. It's not often a journalist gets that kind of leverage. He should take advantage.
     
    Elliotte Friedman, Dec 11, 2007
    #18
  7. MU_was_not_so_hard

    MU_was_not_so_hard Active Member

    Beat me to it. We must know each other.
    It's got nothing to do with his actual abilities now; rather, it's all related to that colorful page next to his picture. Advertisers know people will turn to his page first.
     
    MU_was_not_so_hard, Dec 11, 2007
    #19
  8. Beach_Bum

    Beach_Bum Member

    I believe each ESPN contract with talent is individual with regards to appearances, etc., but it is typical that a certain number of appearances are required. Additional appearances beyond those contracted or appearances on ESPN platforms not part of the contract typically result in additional pay.

    I suspect ESPN will more than get its money's worth from Reilly, even though IMO he's overrated as a columnist. In fact, won't surprise me if in the long run if ESPN thinks they got a deal.
     
    Beach_Bum, Dec 11, 2007
    #20
  9. DanOregon

    DanOregon Well-Known Member

    Knowing ESPN, they've also negotiated for his web rights, Spanish-language rights and rights to use his takes as ring tones.
    Reilly was extremely well-known within the industry before he got the SI back page, but that location (almost as much as his columns) made him a(I hate to say this) "a brand. "
     
    DanOregon, Dec 11, 2007
    #21
  10. BTExpress

    BTExpress Well-Known Member

    Good question, and if this was a non-profit business dedicated to journalism, the 34 beat writers win in a heartbeat.

    But Reilly will draw people to his page, which means they will click on ads.

    Just like a $20 million superstar athlete may draw more fans in the seats than the 5 solid but unspectacular $4 million players who would probably outperform him in total numbers.

    If there is a big story, ESPN has the reporters to break it.

    Remember, too, that benefits are part of any employment package. 34 beat writers will cost a fortune in benefits. You would have to reduce their salary to about $65,000 for the total compensation to be equal.
     
    BTExpress, Dec 11, 2007
    #22
  11. The Big Ragu

    The Big Ragu Moderator Staff Member

    The open page rate in ESPN the magazine is somewhere between $150K to $200K, and no one pays the open rate--they pay discounted rates that are quite a bit lower. If they are running him next to Cover 3, that page sells for more, but it sells for more regardless of Reilly, because it is a premium spot. Either way, you have to compare what they can get for a page without him running on it relative to a page with his column on it. Let's say that VERY generously, he is worth a $100,000 premium per that ad page... and without knowing the details of their ad sales, I can't imagine him fetching anywhere near that much of a premium, but for the sake of argument let's say he does. They publish 26 issues a year. That would mean he is good for $2.6 million in incremental ad sales for the year. I'd guess the actual number is much lower than that, though. They have to hope that $3.4 million accounts for a combination of things, including increased circulation, which can help command a higher page rate across the magazine, the additional revenue any ads relative to his column brings in, and whatever cross promotion they can get out of him with their other properties. I am sure they can make the $3.4 million pay for itself, but it isn't going to be from million dollar ads running next to his column. He's not a one-man Super Bowl.
     
    The Big Ragu, Dec 11, 2007
    #23
  12. Beach_Bum

    Beach_Bum Member

    gonna take a wild guess that whatever reilly is getting paid isn't tied to the ad rates for the mag, only that ESPN would justify such a salary based on the expectation that his value will increase the value of the product. You are right though that an ad in the Mag isn't going to command anywhere near what the back page of SI would command. I also don't think it much matters whose face is on the back column in SI. That was valuable property before Reilly was there and will be highly valuable real estate even if agate is there in his place.

    I also think ESPN overpaid quite a bit for what they will get in return but they obviously don't see it that way.
     
    Beach_Bum, Dec 11, 2007
    #24
Page 2 of 4
Draft saved Draft deleted

Share This Page