ESPN, MLB Talking About New Deal

Major League Baseball (MLB) and ESPN are reportedly in early-stage negotiations to revive their broadcast partnership after mutually opting out of their previous television deal in February 2025, which was set to run through 2028. 

The original seven-year agreement, signed in 2021 and valued at $550 million per season, included exclusive rights to 30 regular-season games (primarily Sunday Night Baseball), the Home Run Derby, and the Wild Card postseason series. 

The split occurred due to ESPN's push to reduce rights fees and MLB's dissatisfaction with ESPN's limited coverage beyond live games, with Commissioner Rob Manfred calling ESPN a "shrinking platform" due to declining cable subscribers.

According to a Monday report by The Athletic, the renewed talks are focusing on a potential new deal that could involve local broadcasting rights, aligning with ESPN's interest in bolstering its upcoming direct-to-consumer streaming service, "Flagship," set to launch in fall 2025. ESPN Chairman Jimmy Pitaro has expressed openness to re-engaging with MLB, emphasizing a desire to serve baseball fans across their platforms. 

These discussions mark a shift from the contentious breakup earlier in the year, with both sides exploring a national package that may include local rights for certain teams, a priority for ESPN's streaming strategy.

MLB is also in talks with other broadcasters, such as NBC, Google, YouTube, and Fox, to replace the rights ESPN held, with Manfred aiming to finalize a deal for the 2026-28 seasons by the All-Star Game in mid-July 2025. 

However, any new deal with ESPN or other partners is expected to yield less than the $550 million annually ESPN previously paid, reflecting MLB's challenge to maintain high rights fees in a fragmented media landscape. The league is prioritizing broader reach over maximum revenue, especially with streaming platforms like Apple ($85 million/year for Friday Night Baseball) and Roku ($10 million/year for Sunday morning games) already in its portfolio.

While no deal has been finalized, the renewed negotiations suggest a cooling-off period has allowed both MLB and ESPN to reconsider their partnership, potentially integrating local and national rights to adapt to evolving viewer habits and the decline of traditional cable.