Contract negotiations for ABC's "Jimmy Kimmel Live!" have encountered difficulties due to Disney's push for substantial budget reductions, according to a report from Puck's Matthew Belloni. This development follows earlier speculation about the show's cancellation.
ABC had previously refuted a Tuesday report that suggested Kimmel's current season would be his last, calling it "purely speculative" and "inaccurate." However, Belloni reported Friday that Disney Chairman Debra OConnell has issued a directive to cut the show's budget, with sources estimating a 20% reduction.
OConnell, who oversees all ABC programming, is reportedly seeking these cuts as Kimmel's current contract approaches its expiration in May. The host previously agreed to a one-year contract, a departure from his usual three-year deals.
"Jimmy Kimmel Live!" is estimated to cost approximately $100 million annually to produce. This figure is comparable to the cost of "The Late Show With Stephen Colbert," which was canceled by CBS in May, citing financial reasons.
Belloni characterized OConnell's request as a significant demand for a show of "Jimmy Kimmel Live!"'s nature. The program is currently in its 24th season.
Sources close to the situation suggest that Kimmel, 58, intends to continue hosting the show, aiming to remain on air at least until after the 2028 presidential election. This desire stems, in part, from his stated goal of continuing to serve as a political commentator.
Kimmel has previously expressed concerns about potential censorship, particularly regarding his interactions with political figures. He accused FCC Chairman Brendan Carr of issuing threats against him, his show, and ABC based on editorial decisions, including guest bookings. Kimmel cited an instance where an interview with Texas Democrat James Talarico was moved from broadcast to YouTube, alleging it was an act of censorship against his political commentary.
The Federal Communications Commission (FCC) is currently reviewing ABC's broadcast licenses and potential violations of the equal time rule, a regulation designed to ensure political fairness. While these arrangements have historically allowed some late-night shows and programs like "The View" exemptions, Carr's review has placed them under new scrutiny.
Carr has denied that the probe is linked to Kimmel's past on-air remarks. Previously, an incident involving a comment Kimmel made about Melania Trump led to local ABC affiliates refusing to air the show, prompting Disney to suspend it for four days. The FCC has not revoked a broadcast license in over four decades, with the last instance occurring in 1969.
Kimmel returned to the airwaves on Tuesday following a three-month summer hiatus. The FCC operates as an independent entity, separate from the current presidential administration.