ESPN’s layoffs can be explained by one graph

There are a ton of wild theories circulating the internet trying to explain why ESPN just underwent its latest round of layoffs, a reality that has seemingly become an annual summer tradition at this point. Is it Pat McAfee's impending $60 million deal? How about Stephen A. Smith's nine-figure contract?

It's easy to be frustrated. McAfee and Smith aren't everyone's cup of tea, and the ESPN many once knew and loved strays further from its glory days with each passing moment. And, to be fair, there's some truth to the idea that McAfee and Smith are taking up a larger portion of the budget. At a base level, there's one pool of money at ESPN that needs to fund the entire operation. But it's not talent deals that are manufacturing the squeeze. It's that ESPN's pool of money is shrinking, and the cost of doing business is going up.