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ESPN Founder Bill Rasmussen is worth over $600 Million.
It took a lifetime of passion for sports, but just ONE YEAR of work.
This wild story is value packed with business lessons:
It took a lifetime of passion for sports, but just ONE YEAR of work.
This wild story is value packed with business lessons:
In May 1978, Rasmussen was fired from his communications job in pro hockey.
In fact, the whole New England Whalers front office was let go after missing the playoffs.
He was down on his luck, but his curious mind already had a MULTI-BILLION dollar idea brewing.
In fact, the whole New England Whalers front office was let go after missing the playoffs.
He was down on his luck, but his curious mind already had a MULTI-BILLION dollar idea brewing.
As a lifelong passionate sports fan, he craved 24/7 sports coverage, and knew he wasn't alone.
At the time, sports highlights were played for merely 30 min/week and only the big games were aired nationally.
Americans wanted sports ALL the time, not just the big games.
At the time, sports highlights were played for merely 30 min/week and only the big games were aired nationally.
Americans wanted sports ALL the time, not just the big games.
Bill knew there was a market for a 24/7 sports network.
But in the 1970s, broadcasting distribution was highly concentrated.
The Big 3 networks dominated the national TV airwaves:
ABC
NBC
CBS
But in the 1970s, broadcasting distribution was highly concentrated.
The Big 3 networks dominated the national TV airwaves:
ABC
NBC
CBS
Without the scale of the Big 3, creating a national channel required aligning hundreds of regional cable companies.
Lacking TV industry experience or clout, he thought his chances at creating a national channel were slim.
But here's where everything changed...
Lacking TV industry experience or clout, he thought his chances at creating a national channel were slim.
But here's where everything changed...
The President of Connecticut-based United Cable pointed him to RCA's emerging satellite TV technology.
Intrigued, Rasmussen set a meeting...
Intrigued, Rasmussen set a meeting...
The RCA salesman explained he could broadcast throughout North America with a satellite transponder.
The best part?
At $35k/month, it was MUCH cheaper than laying cables nationwide.
He had to use his personal credit card for the $9K down payment.
Now he needed a business!
The best part?
At $35k/month, it was MUCH cheaper than laying cables nationwide.
He had to use his personal credit card for the $9K down payment.
Now he needed a business!
He then incorporated E.S.P Network on (later ESPN) July 14th 1978, less than 2 MONTHS after being fired.
But he only had 90 days until his RCA monthly payments kicked in. He needed:
Talent
Content
Studio
Advertisers
But he only had 90 days until his RCA monthly payments kicked in. He needed:
Talent
Content
Studio
Advertisers
So he pitched several potential investors, including established TV industry execs who declined.
His last scheduled meeting was with Getty Oil's Stuart Evey.
As the head of "non-oil" investments, he was intrigued and eventually committed $10M ($40M 2022) to Rasmussen.
His last scheduled meeting was with Getty Oil's Stuart Evey.
As the head of "non-oil" investments, he was intrigued and eventually committed $10M ($40M 2022) to Rasmussen.
Armed with capital, ESP Network built a HQ/studio in Bristol CT, where it still resides today.
Rasmussen also negotiated deals with NCAA to broadcast non-Final Four March Madness basketball games.
He even closed their first advertising deal for $1.4M with Anheuser-Busch.
Rasmussen also negotiated deals with NCAA to broadcast non-Final Four March Madness basketball games.
He even closed their first advertising deal for $1.4M with Anheuser-Busch.
In 1980, Evey knew they needed experienced execs to scale.
Rasmussen retained ~15% equity in the business, but stepped away from the ops.
ESPN, now owned by Disney, was bought and sold several times throughout the 80s and 90s.
Eventually Rasmussen was bought out.
Rasmussen retained ~15% equity in the business, but stepped away from the ops.
ESPN, now owned by Disney, was bought and sold several times throughout the 80s and 90s.
Eventually Rasmussen was bought out.
Today, at 89 years old, his fortune is worth over $600M and he's still as curious as ever.
I love this story because it embodies the American entrepreneurial spirit and shows BIG things happen when you take action.
Here are my favorite takeaways:
I love this story because it embodies the American entrepreneurial spirit and shows BIG things happen when you take action.
Here are my favorite takeaways:
1. PERMISSION NOT NEEDED
Rasmussen had literally NO qualifications to start a TV Network or raise $10M.
Rather than dwell on what he didn't have, he took action.
Thanks to gritty entrepreneurs like Bill, credentialism is dying a slow death.
That's a good thing.
Rasmussen had literally NO qualifications to start a TV Network or raise $10M.
Rather than dwell on what he didn't have, he took action.
Thanks to gritty entrepreneurs like Bill, credentialism is dying a slow death.
That's a good thing.
2. WATCH EMERGING TECH
New technology creates massive opportunities for wealth creation.
Why?
Incumbents move slow and have little motivation to change (they're already rich).
Pay close attention, you might spot a ground-floor opportunity that soon becomes a "no-brainer."
New technology creates massive opportunities for wealth creation.
Why?
Incumbents move slow and have little motivation to change (they're already rich).
Pay close attention, you might spot a ground-floor opportunity that soon becomes a "no-brainer."
3. GET OUT OF THE WAY
Rasmussen had a shockingly short stint at ESPN (1 year) but the lesson remains true...
Recognize if you're not the right person to get the company to the next level.
You may just make $600M.
But if you are, then take it the distance.
Rasmussen had a shockingly short stint at ESPN (1 year) but the lesson remains true...
Recognize if you're not the right person to get the company to the next level.
You may just make $600M.
But if you are, then take it the distance.
4. BE CURIOUS
I watched a 30-minute interview with Rasmussen and he referenced his curiosity several times.
The child-like instinct to ask "why" destroys false limitations imposed by adults.
Challenge the status quo.
When you're right, the rewards are lucrative.
I watched a 30-minute interview with Rasmussen and he referenced his curiosity several times.
The child-like instinct to ask "why" destroys false limitations imposed by adults.
Challenge the status quo.
When you're right, the rewards are lucrative.
5. CREATE ADVOCATES
ESPN was eventually able to charge cable companies for access to their content, which had never been done.
Customers demanded their packages include ESPN.
They used their quality product to turn customers into advocates for additional revenue.
Genius!
ESPN was eventually able to charge cable companies for access to their content, which had never been done.
Customers demanded their packages include ESPN.
They used their quality product to turn customers into advocates for additional revenue.
Genius!
It's the human tendency to assume greatness is reserved for others.
But this story shows how ordinary massive success can be.
An unqualified Rasmussen decided to take action and he literally changed the world economically and culturally.
It's worth it to start.
But this story shows how ordinary massive success can be.
An unqualified Rasmussen decided to take action and he literally changed the world economically and culturally.
It's worth it to start.
For more information on this epic story...
https://www.forbes.com/sites/danschawbel/2012/09/13/how-bill-rasmussen-started-espn-and-his-entrepreneurship-advice/?sh=6efd73f714e5
And buy Bill's Book: "Sports Junkies Rejoice"
https://www.forbes.com/sites/danschawbel/2012/09/13/how-bill-rasmussen-started-espn-and-his-entrepreneurship-advice/?sh=6efd73f714e5
And buy Bill's Book: "Sports Junkies Rejoice"
If you found this interesting and helpful I'd be grateful for a RT others can see it.
Please follow me @barrettjoneill for tactical business threads that will help you improve.
Please follow me @barrettjoneill for tactical business threads that will help you improve.
It always blows my mind how FAST things can change.
From fired to disruptor in a few months is incredible.
Never give up!
From fired to disruptor in a few months is incredible.
Never give up!
