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After a cooling-off period of more than four months, there could be a major reunion in the works between MLB and ESPN.
The two entities have resumed talks about a rights deal, marking a significant turn after their high-profile divorce announced in February. ESPN and MLB plan to end their existing agreement after the 2025 season, three years ahead of expiration, but a new pact could extend a relationship that’s been in place since 1990. It’s not yet certain whether the early-stage discussions will yield a deal, but talks, in part, involve a potential inclusion of local rights as MLB commissioner Rob Manfred looks to rework baseball’s media landscape.
The Athletic first reported the revived talks. An ESPN-MLB reunion had been rumored earlier this spring, and while downplayed by the league then, it appears to have since gathered some steam.
ESPN currently pays MLB $550 million per year for the rights, and sought to lower that fee. The league, conversely, has had several objections of its own as it called ESPN’s demands “unacceptable,” including what it calls “the minimal coverage” MLB receives on ESPN outside of live games.
New Dynamics
Several factors, however, are combining to help bring the parties back together, at least to talk. ESPN chairman Jimmy Pitaro has been steadfast in his desire to keep baseball in a reworked deal, if at all possible, repeating that sentiment recently as the Disney-owned outlet prepares to debut its direct-to-consumer service. Pitaro has also expressed interest in ESPN being part of a solution to the collapse of the traditional cable business that has impaired leagues such as MLB.
The league, meanwhile, has been talking with a variety of entities, including NBCUniversal, Fox, and Apple about the rights being forfeited by ESPN, with a good likelihood of those rights being split into parts. None of those networks, however, have the type of relationship with MLB that the league has had with ESPN, nor the constant sports presence.
Some type of conclusion could be soon forthcoming as MLB intends to have the rights issue settled before the July 15 All-Star Game in Atlanta.
“We liked the deal we had,” Manfred said earlier this month about ESPN. “Looking backwards, do I wish I wasn’t in a position to sell three years so we can line our rights up in 2028? The answer to that is yes.”
To that end, the MLB-ESPN tie has always been fraught with discomfort, said former league EVP and CFO Jonathan Mariner.
“There was always this tension between ESPN and MLB in the sense that they needed each other, but—and this is just my view—ESPN, we were second fiddle to the NFL,” Mariner told Front Office Sports in a new episode of Portfolio Players. “And I think the other sports leagues may feel the same way. ESPN loves the NFL. And I think that was always a factor. … I’d like to see them get back together. ESPN has been a great partner for a long time and who knows?”
