ESPN is opting out of MLB broadcasting deal
ESPN announced last Thursday that the company would be opting out of its broadcasting contract with Major League Baseball. Shortly after, MLB followed up the announcement with a statement from commissioner Rob Manfred.
The two were mid way through a seven-year-agreement signed in 2021 that would have ESPN carry the MLB through 2028, but both sides appear to have grown upset with the terms of the deal.
“[The league has] 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,” wrote Rob Manfred in the press release. “We have been in conversations with several interested parties around these rights over the past several months and expect to have at least two potential options for consideration over the next few weeks,” via Evan Drellich and Andrew Marchand of The Athletic.
Moreover, the league plans to release a direct-to-consumer product for MLB coverage that is estimated to have a monthly subscription of $25-$30 per month.
ESPN’s gripe with their deal was because of money. If the contract were to have continued through 2028, ESPN would have owed the league $550 million, over the remaining three-years — roughly $183 million per year. ESPN contends that price is significantly over market value, pointing to Apple and Roku’s deals ($85 million and $10 million respectively).
Both sides left open the possibility of working a new deal, but it would likely be at a significantly discounted price. Furthermore, with the launch of their new product the MLB could be less inclined to remain with ESPN especially if it is at a lesser value.
Luke Graham is a digital sports content co-op for 98.5 the Sports Hub. He is currently a sophomore communications student at Northeastern University. Follow him on X @LukeGraham05.
