Towards the beginning of spring training, ESPN and Major League Baseball agreed to a mutual opt out of their media rights contract after this season. As a result, the league is in the process of determining its next steps for the package that had previously netted a reported average of $550 million per season. The compilation of events in that deal currently includes Sunday Night Baseball, the Home Run Derby and select postseason games. ESPN chairman Jimmy Pitaro recently expressed in an interview with Austin Karp and Mollie Cahillane of Sports Business Journal that the company feels great towards how it has “shown up for the sport,” but acknowledged that the decision to opt out was made bereft of emotion and based on the internal view of performance.
Over the years, ESPN has showcased innovation within its MLB coverage through studio programming and production ventures, and it has also promoted the sport through several different outlets. MLB commissioner Robert D. Manfred Jr., however, claimed that ESPN had engaged in an “aggressive effort” to reduce its broadcast rights fee and that the league did not feel it would be beneficial to accept a smaller deal to stay on what it called a “shrinking platform.” Pitaro explained in the interview that exercising the opt out is not indicative of the company no longer interested in being in business with the league.
“I don’t know where they are at this point, but as I’ve said repeatedly, if they do reach out and they’re interested in talking, we’re of course going to listen,” Pitaro explained. “I’ve been consistent that we are still interested in national games, we’re interested in other components of our package. We’re interested in postseason, but we also are very, very interested in local – whether that’s in-market or out-of-market, we’re very interested in that space, and if they’re interested in being creative with us and working out some kind of a new construct, we are as well.”
The league has reportedly had discussions about licensing the MLB.TV package of games to networks and/or digital platforms as it aims to nationalize local media rights deals and terminate blackouts for fans in 2028. Pitaro has previously expressed interest in the regional sports rights, articulating last summer that the company could help distribute games utilizing its streaming platforms and provide new reach. While Pitaro did not explicitly state whether or not ESPN had interest in the MLB.TV package, he conveyed that “everything is on the table there.” ESPN remains slated to release its direct-to-consumer functionality and app enhancements in the fall.
“We are very happy with the current app and all the personalization features – that’s the foundation – but we’re building off of that foundation, and we’ll launch with enhancements like more fantasy integration, more betting integration, more commerce integration, stats integration,” Pitaro said. “If you’re a subscriber to ESPN, whether directly or through a cable or satellite affiliate, you will have access to all of that enhanced functionality in addition to a personalized SportsCenter, which we’re really excited about.”
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