In a move signaling shifting tides in the media landscape, ESPN is reportedly considering opting out of its Major League Baseball contract much earlier than anticipated.
John Ourand, a respected sports media journalist, suggests that ESPN may exercise this option as soon as the end of the current season, rather than waiting until the original contract expiration.
ESPN is reportedly "likely" to opt out of their MLB contract to get more value from the league. ⤵️https://t.co/8ZrzZUaFUA
— Awful Announcing (@awfulannouncing) March 30, 2024
The decision comes amidst a broader industry trend where networks are reassessing their financial commitments, particularly in the wake of the transition from linear to digital platforms.
Ourand notes that while ESPN remains interested in baseball content, the network aims to renegotiate for more favorable terms, potentially including local broadcasting rights.
The current MLB deal with ESPN, which extends through the 2028 season, stands at $540 million per year.
This figure represents a decrease from previous payments, with ESPN having relinquished a midweek package of games, effectively reducing its MLB inventory.
Episode 82 is Live!🚨
-ESPN might opt out of contract with MLB 🧢⚾️
-"Curb Your Enthusiasm" is coming to an end 👨🦲👨🦲
"Roadhouse" remake 👊👊
-BRITISH/TEEN CORNER 🛹💂
-More!Spotify–>https://t.co/AD8mlwxuOa
Apple podcasts–>https://t.co/FS8k1DLR8M pic.twitter.com/p8PBuLNdmb— The TV Show (@_thetvshow) April 4, 2024
Speculation about ESPN’s intentions first arose last fall when the New York Post reported that both ESPN and MLB had clauses allowing for early termination of the contract after the 2025 season.
In light of these developments, MLB Commissioner Rob Manfred is faced with a critical juncture as he evaluates the future of the league’s broadcasting partnerships.
MLB has already navigated challenges, including the bankruptcy of Diamond Sports, resulting in the league taking control of local rights for several teams.
I think both the NBA and MLB have a TV contract with Bally Sports that’s different from the NHL but Disney NEEDS to get MLB TV contract. NHL is so accessible now with ESPN+. If you wanna grow the game make it easy to watch
— B$$$$ (@Besticals) March 28, 2024
ESPN’s potential departure from its MLB contract underscores the delicate balance between networks and sports leagues in an era of rapid digital transformation.
As ESPN seeks to maximize its $550 million annual investment, MLB may need to offer concessions to maintain the longstanding relationship, which includes flagship programming such as Sunday Night Baseball.
I honestly love the Sunday night baseball telecast with @karlravechespn. I hope ESPN doesn’t leave MLB. Unless it setups a new contract where they keep SNB and add Wednesday back as an exclusive window. And maybe an ESPN+ produced game to some RSN rights. That would be awesome.
— Patrick (@panderson1988) April 1, 2024
However, the dynamics of the negotiation raise questions about the power dynamic between ESPN and Major League Baseball.
Despite baseball’s historical significance, ESPN has gradually shifted its focus towards other sports, such as the NFL, NBA and college football, potentially diminishing its reliance on MLB content.
For Awful Announcing, I wrote about how much I hate that ESPN's MLB scoreboard graphic now includes win probability – which I see as a gateway to ESPN's true objective: eventually putting the moneyline on all their scoreboards.https://t.co/jBFuWjXwC7
— Velodus (@velodus) March 15, 2024
While the broadcasting deals for the NFL and college football have gone through the roof and show absolutely no signs of tapering down, MLB just simply does not have the same power or leverage.
"I think you definitely are going to see the biggest television deal ever signed in sports" – NBC Sports' Jon Miller on why the NFL's next rights contract will far outstrip any prior broadcast deal in the industry #SPOTT20 #SportsBiz pic.twitter.com/DLW7Ljf3nT
— SportsPro Influencers (@SP_Influencers) December 3, 2020
In the big picture, what are your thoughts on the current state of Major League Baseball?
Is the sport as healthy as it should be? … Are you worried that it’s become too regional?
What does Manfred and company need to do to at least partially close the gap on football in America? … Or is that just no longer possible???