ESPN

While many don't realize it, ESPN is in financial trouble. As a result, player contracts and collective bargaining agreements could be in trouble as well.

Why? That's a great question that requires a longer than normal answer. The basics? When it comes to cable television, people are cutting the cord. ESPN's huge contracts with the NBA and NFL were all based on their projected income from what they then charge the cable companies for their programming. But for many viewers, especially those that do not care about sports at all, the raise in their cable bills, to support something they don't even care about, was no longer an option.

Netflix became a major powerhouse and option, while cable became a luxury they could no longer afford.

And ESPN isn't the only problem. TNT and FOX sports (FS1) are on nearly every cable system as well. THEY signed huge contracts with  major sports so that people would want to have them as well. As much as $10-$12 a month are going to these three channels so they can pay their license agreement fees with professional sports.

I don't even watch TNT or FS1 and I'm paying $8 a month to have them.

Networks weren't surprised that some people decided to cut their ties to cable. They were surprised how many decided to cut their ties. Best estimates seem to show that over 20% of regular cable customers have left cable over the last 7 years. That number is expected to DOUBLE over the next five. Some observers are predicting that this is only the tip of the iceberg.

If you lose 40% of your predicted revenue in a little over 10 years, what are your alternatives? For ESPN, they've started cutting staff, both on-air and behind the scenes talent. They are expected to start firing more people over the next 6 months. AND they are talking about raising their rates.

The handwriting is on the wall, the big money deals with major league sports will soon be ending. Cable television has gotten too big and too expensive for the average household, as the average  cable viewer is now seeing their part in the huge money deals athletes are now receiving, and they don't want to put up with it any more.

I'm one of those leaning toward making the cut. In five years, my guess is we will not even recognize cable television and those that have it will be paying much more for it.

Much more.

Cable is now seen as a luxury item for most. Netflix, Hulu, and Amazon are seen as true alternatives. True, less expensive, alternatives.

Sports will suffer because of it. Athletes are worth what people are willing to pay for them. People are willing to pay them less than they used to.

It's that simple.