MLB Set To Suffer $550 Million Blow from ESPN to Expand “Baseball’s Reach Beyond the Sinking Ship”   

Can ESPN really opt out of its media rights deal with MLB? It seems so. The media giant pays around $550 million each year to broadcast MLB games and rumour is that the company thinks it’s time to re-negotiate. Just a week ago, MLB seemed to have warned ESPN that if the media giant tried to renegotiate the said deal, they would walk away.

However, at the time, it did not seem like a real threat because ESPN has been broadcasting major league games since 1990. That’s more than three decades of relationship we are talking about. But there is also the fact that if the league does decide to walk away, they will not have a problem with finding a replacement. Becuase there’s always Comcast (NBC), Paramount (CBS), Amazon, and Netflix.

According to Awful Announcing, LightShed Partners found that MLB might be open to a slightly smaller deal given they reach an audience who have ditched traditional television. “While it would be hard for all four entities to justify the current ESPN price of $550 million/year, we suspect MLB is willing to take a lower price and/or include additional rights to accomplish the larger strategic goals of expanding baseball’s reach beyond the sinking ship of cable television.”

The truth is, ESPN’s deal with MLB is a tough pill to swallow. For $178 million less than Fox, ESPN gets just 30 regular-season games, the Home Run Derby, and a single Wild Card series. Meanwhile, Fox gets the World Series, an LCS, an LDS, the All-Star Game, and more regular-season action.  

When you break it down, ESPN’s package doesn’t seem like much. It’s a head-scratcher, especially considering what Fox is getting for a similar price. Seems like ESPN’s paying big for a small piece of the pie. And that is exactly why the media giant has decided it is time to renegotiate the deal with the league. 

What other option does MLB have if not ESPN? 

Per the LightShed report, MLB could be a good fit for two other big media players: NBCUniversal and Paramount. With NBC adding NBA rights next year, they could use MLB as the perfect filler between basketball and football seasons. It would help complete their sports calendar. Meanwhile, Paramount, soon to be under new ownership, might want to pour more money into sports.  

That could mean more exposure for MLB, but some games might end up on Peacock or Paramount+, behind a paywall. As for Amazon and Netflix, LightShed believes Amazon is the more likely contender. Amazon’s already jumping into the NBA next season, so adding MLB could be a natural fit. It would help fill out their summer sports lineup, keeping Prime Video fresh.

That’s a smart move for any streaming platform. Netflix? Not so much. While they’ve shown interest in live sports, LightShed thinks MLB just isn’t a top priority for them right now. Sports are still a bit of a wild card for Netflix, and they might not be ready to take the plunge just yet.