ESPN and MLB can’t agree on a deal
The sports broadcasting world was stunned Thursday after ESPN and Major League Baseball (MLB) announced they will no longer be partners following the 2025 season. MLB and ESPN agreed to opt out of their contract’s last three years.
MLB commissioner Rob Manfred sent a memo to clubs that was obtained by The Athletic, in which he confirmed ESPN had asked the league to “reduce the amount (ESPN) pay for MLB content over the remainder of the term.” Their current deal was for seven years worth $550 million annually, and featured Sunday Night Baseball, the Home Run Derby and wild-card games. But Apple and Roku have since negotiated slimmer packages of games for less cash.
MLB not happy with ESPN lack of coverage
According to the Manfred Missive “Furthermore, we have not been pleased with the minimal coverage that MLB has received on ESPN’s platforms over the past several years outside of the actual live game coverage,” the commissioner wrote in part.
“While ESPN has stated they would like to continue to have MLB on their platform, particularly in light of the upcoming launch of their DTC product, we do not think it’s beneficial for us to accept a smaller deal to remain on a shrinking platform. In order to best position MLB to optimize our rights going in to our next deal cycle, we believe it is not prudent to devalue our rights with an existing partner but rather to have our marquee regular season games, Home Run Derby and Wild Card playoff round on a new broadcast and/or streaming platform.”
ESPN has carried MLB games since 1990, but the network cut back its coverage in the current contract to 30 regular-season games — mostly on Sunday night — and the Wild Card postseason series. ESPN also had the Home Run Derby and 10 spring training games.
The previous eight-year deal, which ran from 2014 through 2021, saw ESPN broadcast up to 90 regular-season games. It also stopped airing the daily “Baseball Tonight” highlights and news show in 2017.
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ESPN issued their side of the story
“We are grateful for our longstanding relationship with Major League Baseball and proud of how ESPN’s coverage super-serves fans,” the statement said. “In making this decision, we applied the same discipline and fiscal responsibility that has built ESPN’s industry-leading live events portfolio as we continue to grow our audience across linear, digital and social platforms. As we have been throughout the process, we remain open to exploring new ways to serve MLB fans across our platforms beyond 2025.”
No shortage of potential partners
It was a surprise that ESPN would not want MLB content as part of their soon-be-launched direct-to-consumer streaming channel. Presently, Friday Night Baseball is on Apple TV while Roku Sunday Morning Baseball will continue.
Manfred eyes a larger streaming package for 2028 with no shortage of potential partners. We can start with Apple TV and Roku who already have deals, Amazon Prime Video has regional deals with MLB and they will be in the mix. You can’t count out either Netflix or YouTube as paters, or CBS/Paramount+ and NBC/Peacock.
It remains to be seen if ESPN made a good choice to get out of the deal.