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What does ESPY stand for, or mean?

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ESPN stands for Entertainment and Sports Programming Network. The term "ESPY" is a comparison made to awards such as emmy's and grammy's.
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To catch sight of (something distant, partially hidden, or obscure); glimpse.
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Excellence in Sports Performance Yearly

cant wait for tonight to watch them!!!
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It doesn't stand for anything; just the name of ESPN's annual awards event. I think they fashioned their name combining ESPN with "y" to mimic other awards names such as Grammy or Emmy awards. It's a lot easier to say the shortened "espy", than the long and drawn out, "ESPN" awards.
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From the Wikipedia article:

The ESPY Awards is an annual sports awards event created and broadcast by American cable television network ESPN. Begun in 1993, the event confers eponymous awards, fully styled as Excellence in Sports Performance Yearly Awards, for individual and team athletic achievement and other sports-related performance during the calendar year preceding a given ceremony
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