From the quote it sounds like this award was being designated to the show runners. There were other emmys for hosting/etc. that the hosts could have won.
I think it's fair for the emmys to designate who is eligible for the award, but I understand why ESPN would also want to recognize the hosts. Personally I think all these awards are mostly made up anyways, but I would say ESPN is more in the wrong as the emmys were specifically saying the hosts weren't doing anything worthy of an Emmy.