ESPN

I warned of the massive layoffs that ESPN would be experiencing over a month ago. Over 100 employees were let go yesterday.

Don't think that this is the end. ESPN is losing subscribers as more and more people cut their ties to cable television. You can't be a profit center AND spend that much money for sports. Something had to give.

TV sports contracts rights will begin to shrink. The pot will start getting smaller from now on. A few superstars will still be paid the big bucks. But there will be less of them. The ripple effect won't happen right away. But the biggest ripple just hit.

ESPN, FOX Sports, The Turner Stations, and others cannot exist the way they are with a dwindling supply of revenue. Cable television is changing in America. And the result is that major league sports will start to feel the pinch as well. Money is no longer unlimited.