Disney sports betting ambitions in limbo following CEO change
Bob Chapek leaves global media giant as sportsbook expansion opponent Bob Iger returns to top job
The Walt Disney Company has confirmed the reappointment of long-standing executive and former CEO Bob Iger as its new CEO, a move which could severely impact its expected diversification into sports betting.
Iger, who previously spent 15 years as CEO of the global media giant, has agreed to serve as Disney’s CEO for two years, returning to a job he vacated in 2020.
His mandate in returning to Disney will be to set the “strategic direction for renewed growth” at the firm, as well as working with the board to develop his successor when the two-year term expires.
Speaking on his surprise appointment, Iger said he was “extremely optimistic” about the company’s future.
“Disney and its incomparable brands and franchises hold a special place in the hearts of so many people around the globe – most especially in the hearts of our employees, whose dedication to this company and its mission is an inspiration.
“I am deeply honored to be asked to again lead this remarkable team, with a clear mission focused on creative excellence to inspire generations through unrivaled, bold storytelling,” Iger added.
Iger succeeds current CEO Bob Chapek, with unconfirmed media reports suggesting he had been ousted from the top job after losing both the confidence of the board of directors as well as Wall Street executives.
In a statement, Disney outlined its reasons for Chapek’s departure: “The board has concluded that as Disney embarks on an increasingly complex period of industry transformation Bob Iger is uniquely situated to lead the company through this pivotal period.”
The reappointment of Iger casts a dark cloud over Disney’s potential expansion into sports betting through its ESPN subsidiary, rumors of which have swirled around the market throughout 2022.
The new man in charge at Disney has previously outlined his opposition to Disney’s involvement in sports betting, particularly during his tenure as CEO, suggesting in 2019 that the firm would play a peripheral role in the sector, such as providing coverage through ESPN.
“I don’t see The Walt Disney Company, certainly in the near term, getting involved in the business of gambling, in effect, by facilitating gambling in any way,” Iger told investors in May 2019.
In contrast, Chapek, appointed on the departure of Iger in 2020, has pursued an agenda of expansion into this area, as a way of diversifying Disney’s revenue mix beyond its core business.
Chapek’s plan was to license the ESPN brand and broadcasting service to a separate sportsbook operator rather than Disney becoming an operator itself, generating revenue from the US market but maintaining an appreciable distance from the gambling sector.
His plans had drawn the support of ESPN president Jimmy Pitaro, who claimed that sports betting was a “must-have” for the sports broadcaster in June. Last month, Bloomberg reported that DraftKings was in talks with Disney over an exclusive partnership which could be worth in the region of $3bn.
However, with the return of Iger, these plans could potentially be put on hold or even shelved indefinitely.