ESPN's challenge comes down to this. In the soon becoming bygone era "everybody" had "cable" (please don't knitpick, not literally "everybody" and here "cable" can mean dishes as well). A cable bill is really just a pass through to the channels (of course, yes, the cable company makes a profit just like any business). Everybody got, and paid for, ESPN.
And ESPN, likewise, is really just a pass through to the leagues, and thus the players and coaches.
Now, or very soon, people will be able to receive TV elsewise. And simply put, there are a lot of people who simply do not like sports, either at all or not that much. So these people are not willing to pay. And to maintain the current levels, the amount that the people who do like sports would need to pay is not realistic ($40 or $50/month).
So ESPN is stuck with all of these long term deals with leagues, which are becoming toxic to Disney as a corporation. The most toxic being not the NFL one, but its recent MASSIVE over-bid for the NBA. And ESPN is also stuck with all of these daytime talking heads who are paid just WAY too much money. And with 5 layers of empty suit executives as well.
Spinning off a division with toxic assets as a stand alone company is an old Wall Street trick. Will it happen? Maybe. But what will happen is that the amount of dollars passing through cable to ESPN (et al) and on to billionaire athletes is about to get much smaller.
If you listen very closely, you will hear the world's smallest violin playing. My heart just breaks for these people.