ESPN Ends Nearly 40 Year TV Rights Deal with MLB
It's the bottom of the ninth for baseball on ESPN.
After almost 4 decades of partnership, ESPN and Major League Baseball (MLB) are ending their TV rights deal after the current season.
What’s Happening:
- Variety reports that ESPN has decided to cut an end to its TV rights deal with the MLB.
- ESPN shared in a statement “We are grateful for our long standing relationship with Major League Baseball and proud of how ESPN’s coverage super-serves fans. 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."
- The pair are currently in a seven year deal that began in 2022. However, both sides opted in for an “opt-out" clause in 2025, that allows either side to end the agreement under certain circumstances.
- The clause has become common in the age of streaming, as media companies fight for sports rights for streaming services.
- Sports is one of the last remaining formats that draws in a large number of viewers simultaneously. Advertisers are generally more enticed to place ads during sports because of this.
- According to the news source, ESPN notified MLB at 9:45AM this morning, Thursday, February 20th.
- As it stands, ESPN pays around $550 million a year for MLB rights.
- MLB has made smaller deals with Apple and Roku to exclusive stream specific games, which led to strain in the corporate relationship.
- On the other hand, MLB has been frustrated with ESPN’s lack of coverage of their platforms.
- Disney has been spending big money on sports rights over the past few years, specifically with the NFL and NBA.
- Based on performance, ESPN decided it was not worth the exorbitant price to keep America’s “national pastime" on the network.
- Apparently, the MLB has been in conversations with other parties in regards to the rights to MLB content and are expected to have two potential options over the next weeks.
- Allegedly, ESPN offered to MLB a new deal for other tie-ins with their upcoming streaming service, however, MLB shutdown those smaller offers in hopes of finding a better valued deal.
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