As negotiations for media rights in the NBA and expanded College Football Playoff approach – and with multiple entities reportedly interested – there seems to be a wrinkle that could impact the proceedings. ESPN, in its seven-year deal with Major League Baseball, pays approximately $550 million per season – $100 million of which is allocated for the playoffs. Andrew Marchand of The New York Post reports that the network has an opt-out clause in its contract following the 2025 season, something that the network could choose to enact in order to reallocate its resources amid a changing media marketplace.
The network has the broadcast rights for Sunday Night Baseball, the Home Run Derby, and the Wild Card Series, all properties that traditionally amass sizable viewership. The Derby averaged 6.11 million viewers across platforms this past year, the lowest mark for the event since 2018, while the ratings for the Wild Card Series garnered 2.25 million across the eight games, down 18%. While it was out of ESPN’s control, all series ended in 2-0 sweeps, marking seven of the first eight matchups under this new format to result in this outcome.
In the second year with its revamped broadcast team of Karl Ravech, Eduardo Pérez, David Cone, and Buster Olney, Sunday Night Baseball ratings dropped 2% year-over-year, still hovering around an average of 1.5 million viewers.
MLB is in the midst of uncertainty as it navigates Ch. 11 bankruptcy proceedings for Diamond Sports Group, which currently holds local broadcast rights for 14 of the 30 teams. As ESPN prepares a direct-to-consumer offering, its impending direct-to-consumer product, the network is reportedly looking to add a tier that will allow fans to watch local games for an extra fee.
Last season, the league aired regional broadcasts for the San Diego Padres and Arizona Diamondbacks through its local media department, producing and disseminating these contests after Diamond rejected the existing contracts. Moreover, each team received at least 80% of the money they were owed under the previous deals to ensure competitive balance. The league recently filed a motion to conclude the exclusivity period for the Sinclair subsidiary, demanding answers regarding next season.
The league itself reportedly has an opt-out in its contract with ESPN, although the parameters of such are not known.
