Welcome back to The Varsity, my private email on the heroes and villains who run the sports media trade. Happy Derby Weekend to all who celebrate.

Before getting started, I want to highlight this fascinating Ben Strauss story about Stephen A. Smith, whose ESPN contract is expiring next year. ESPN’s management of this negotiation will certainly become a leitmotif—look it up, jocks—of the fall and winter. As Strauss notes, Stephen A. has been fixated on Pat McAfee’s deal, which pays the host $15 million to produce and star in his daily show, and make special appearances elsewhere.

Of course, it’s not an apples-to-apples comparison since McAfee launched to stardom outside of Bristol and was lured in to support its new streaming dreams. Stephen A., on the other hand, is a homegrown product—a New Yorker turned Philadelphia Inquirer journalist who came to stardom on the old Sports Reporters set that minted so many signature talents (Wilbon & Kornheiser, Albom, Lupica, Bob Ryan, etcetera) on the shoulders of Dick Schaap. Nevertheless, Stephen A. has ascended to ESPN’s Berman-Olbermann pantheon, and he’s not one to negotiate quietly. “I know what all the stars in media make,” Stephen A. said. “I stand to benefit from that.”

This jam-packed issue features lots of news surrounding my two current obsessions: the oscillating NBA media rights negotiations and Diamond Sports’ slow march out of bankruptcy. For full access to my reporting, and the rest of my all-star colleagues’ private emails, sign up here. If you are one of the scoundrels still forwarding this email to your colleagues, we’ll have no choice but to sign you up for Marchand’s Jazzercise class!

Let’s get to it…