MLB, ESPN have agreement for network to sell all out-of-market and some in-market games: Sources

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Major League Baseball and ESPN have a framework agreement that would give the network the exclusive rights to sell all out-of-market regular-season games digitally and in-market games for five clubs over the next three years, sources briefed on the discussions told The Athletic.

ESPN would continue to broadcast around 30 regular-season games, but “Sunday Night Baseball” would move to a different night during the week. The games on the network would remain exclusive, meaning viewers would only be able to watch these matchups through ESPN. The agreement would begin next season.

The deal is not yet signed, and its full completion is not expected until September. The exact amount that ESPN will pay is not known, but it is substantial.

MLB and ESPN declined to comment.

The expected agreement arrives after ESPN opted out of the final three seasons of its deal with MLB, in which the network paid an average of $550 million per year for “Sunday Night Baseball,” eight-to-12 first-round playoff games and the Home Run Derby.

Following ESPN’s opt-out in February, MLB commissioner Rob Manfred described the network as a “shrinking platform” as part of an explanation to owners.

It appears that Manfred and ESPN chairman Jimmy Pitaro have moved past their differences. Pitaro has stated on numerous occasions that he would like ESPN to help solve the local sports issues that have developed as many regional sports networks struggle, as fewer viewers subscribe to cable and other distributors.

With cable diminishing, ESPN debuted its direct-to-consumer product Thursday that costs $29.99 per month and does not require a cable, satellite or YouTube TV-type subscription. The added features of its new app are available to most, but not all, customers who subscribe traditionally.

Netflix remains the heavy favorite to pick up the Home Run Derby for the next three years, while NBC and Apple are considered the top landing spots for “Sunday Night Baseball” and the first round playoff games.

Under the framework of an agreement between MLB and ESPN, ESPN would have MLB.TV as part of its direct-to-consumer offering. It is not fully clear yet if out-of-market subscribers who pay for the package through cable or other linear subscription would still be able to receive MLB.TV that way.

For digital consumers, fans are likely to need an ESPN direct-to-consumer subscription to go along with MLB.TV. The overall new pricing for MLB.TV is not yet decided, but is expected to be similar or slightly cheaper than the current $29.99 per month rate.

If the deal is signed, ESPN will have the full rights to in- and out-of-market games for five teams. The Cleveland Guardians, San Diego Padres, Minnesota Twins, Arizona Diamondbacks and Colorado Rockies are the clubs under MLB control. Fans would likely need to subscribe to ESPN either directly or through an operator, and then, for an added price, they would be able to receive their local teams’ games.

The ESPN-MLB deal could eventually include MLB Network, but that is not set yet. MLB Network may be part of an add-on combo offering where it could be included in an ESPN bundle.

ESPN has been the long-time home of “Sunday Night Baseball,” which features top teams with no other games played at the same time. NBC/Peacock and Apple have been the top contenders to succeed ESPN.

Apple already has Friday night exclusive doubleheaders. MLB’s leaders are still trying to find the right price and distribution models for this package and its playoff rights. What Netflix is expected to pay for Home Run Derby is not yet known, but sources briefed on the expected terms said it has met what MLB is looking to be paid for the event.

All of the deals that MLB is making are expected to be three years, as the league wants to line up its entire national and international rights, plus the World Series and playoffs, to auction off at once and begin in 2029.

The move for MLB.TV continues the $80 billion-plus spending spree that Pitaro and ESPN have been on since he began as the network’s chairman a little more than seven years ago.

ESPN made four separate deals with the NFL. One of the agreements gave the NFL a 10 percent stake in the network, which is valued at an estimated $2.5 billion. In the deals, ESPN added three more NFL games per year, access to Red Zone and ownership of NFL Network. The Department of Justice has to sign off on portions of the agreements, such as NFL Network, meaning they won’t go into effect until next year, at the earliest, and possibly not until 2027.

ESPN also acquired rights to WWE’s top event each month, including WrestleMania. The two sides announced this week that it would begin next month.

(Photo: Troy Taormina / USA Today via Images Images)

This news was originally published on this post .

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