(Bloomberg) -- The spike in Covid-19 cases imperils as much as $400 million in college football playoff advertising for Walt Disney Co.'s ESPN sports network because of the growing risk games may be canceled, Bloomberg Intelligence estimated in a note Tuesday.
A handful of games have already been called off, including the Hawaii, Military and Fenway bowls, because of the surging caseloads. In addition, the playoff organizers announced on Dec. 22 a series of steps to protect student athletes and determine a national champion if games can't be played.
Post-season college football brings in $350 million to $400 million annually for ESPN, Bloomberg Intelligence analyst Geetha Ranganathan estimated, citing Kantar Media. Revenue grew about 8% annually from 2013 to 2018.
“We are working closely with the College Football Playoff and other bowl organizers and are confident in the health and safety plans they have in place for the games to be played as scheduled,” ESPN said in an emailed statement.
The TV industry is also grappling with a loss of viewers to streaming services. Last year's NCAA championship game saw audience ratings decline by 27%.
ESPN generates about $12 billion in annual sales for Disney and about $4.3 billion in annual earnings before interest, taxes, depreciation and amortization, Bloomberg Intelligence said.
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