ESPN and MLB Reach Framework Agreement
Major League Baseball (MLB) and ESPN have established a framework agreement that grants ESPN exclusive rights to digitally sell all out-of-market regular-season games, as well as in-market games for five specific teams over the next three years, according to sources familiar with the discussions.
Broadcast Changes
While ESPN will continue to air approximately 30 regular-season games, it will no longer feature “Sunday Night Baseball.” Instead, the network plans to reschedule broadcasts to a different night during the week. These games will remain exclusive to ESPN, meaning they can only be viewed on their platform. The new agreement is set to commence next season.
Deal Status
The agreement is not finalized, with full completion expected by September. While the specific financial terms are unclear, sources indicate that the compensation ESPN will provide is considerable.
Background Context
This anticipated agreement follows ESPN’s decision to exit the final three years of its existing contract with MLB, where the network paid an average of $550 million annually for broadcasts including “Sunday Night Baseball,” playoff games, and the Home Run Derby. MLB commissioner Rob Manfred had previously critiqued ESPN as a “shrinking platform” during discussions with team owners.
Future Collaborations
Despite past differences, it seems that Manfred and ESPN chairman Jimmy Pitaro have reached a collaborative understanding. Pitaro has expressed interest in having ESPN address local sports challenges arising from the decline of regional sports networks amid decreasing cable subscriptions.
Direct-to-Consumer Offerings
Amid the decline of cable, ESPN launched its direct-to-consumer service at a monthly rate of $29.99, eliminating the need for traditional cable or satellite subscriptions. Current subscribers using traditional methods may not have access to all features of the new app.
Potential Distributions
As for the Home Run Derby, Netflix is reportedly the frontrunner for the next three years, while NBC and Apple are likely contenders for “Sunday Night Baseball” and initial playoff games. If the deal finalizes, ESPN will likely gain full rights to in- and out-of-market games for the Cleveland Guardians, San Diego Padres, Minnesota Twins, Arizona Diamondbacks, and Colorado Rockies. Fans may need to subscribe to ESPN for local game access, possibly incur additional costs for local team games.
