In the end, Rob Manfred got exactly what he wanted. He took what ESPN was paying for and spread the content to new parties while making more money on it. Genius, some would say, while others feel nauseous at the concept of giving MLB’s commissioner the credit. He took all the elements ESPN once called their own to make half of what was lost on the deal. Then he turned around and got the reported same amount of money from ESPN for a different package of baseball content.
Does MLB make more money in the short term? Yes. Will it cost more for fans to watch baseball? Yes. Did MLB have to give up assets it probably preferred not to? Of course, but did they?
Did Rob Manfred do the right thing? Yes. Tick tock, can you hear that? The clock is now beginning to tick for his tenure at Major League Baseball.
When the original news was announced that MLB and ESPN would be opting out of their contract, it was puzzling. How could a network that depends on rights agreements be willing to walk away from a major player? Also, how could MLB be okay walking away from the dominant sports network in the country?
There were a lot of words and postures by both sides. In the end, both parties knew they needed each other.
ESPN wasn’t happy paying $550 million a season for what they had. Sunday Night Baseball, the Wild Card Round, and Home Run Derby, along with ESPN Radio as the destination for all of it—including the postseason—wasn’t enough. That’s ESPN’s call.
Manfred even said he believed ESPN was a “shrinking network” and that it was in MLB’s best interest to accept a smaller deal from ESPN.
Here we are. ESPN still pays $550 million with a different package that MLB arranged. MLB sticks with ESPN under the baseball umbrella.
ESPN as an RSN?
Some would say ESPN is getting a win here with the new exclusive rights to MLB.tv and exclusive, local in-market rights to six MLB clubs. It’s more content for the network and more content that they can add to their app. Every dollar that fans in those markets spend to watch baseball now comes to ESPN. Every subscriber to the service can watch their product through the ESPN app. More money, more eyeballs, more downloads.
Who needs Sunday Night Baseball or postseason games? Forget about the Home Run Derby. Wait! What will Chris Berman do this summer?
This was a play for ESPN to become what it has never been: a regional sports network for MLB clubs. It’s a three-year experiment that could have lasting impacts for the network and the future of what drives subscribers to the ESPN app for generations.
They’ve always been an evolving company. This is just the latest step.
Manfred’s Playing Chess
From Manfred’s perspective, he got exactly the situation he wanted. All MLB media rights deals with ESPN, FOX Sports, TNT Sports, Netflix, and NBC Sports expire following the 2028 season. The goal: place MLB in a position to leap the NBA in media rights revenue with the next round of agreements.
The NBA just began its 11-year, $77 billion national media rights deals this year. ESPN/Disney, Amazon Prime Video, and NBCUniversal have swallowed up how fans across the country consume NBA television. MLB’s goal is to set up something similar while increasing the dollar amount as more players enter the running for media rights.
That’s why Manfred’s move announced on Wednesday was genius. Instead of keeping MLB on Apple and Roku, he elevated the playing field to NBC Sports and Netflix—all while keeping ESPN under the umbrella.
It’s a limited-time window for Manfred, but the chess pieces are lined up perfectly. To achieve the goal, you need to be talking to the best players in the game. Netflix will never run out of money and has made deals with the WWE, NFL, and several other sports franchises. They also acquired the rights to broadcast the World Baseball Classic in Japan, with all 47 games available live or on-demand.
Smells like a World Series might be headed there soon.
Manfred also got into the pie with NBCUniversal, which owns the property for the most-watched television show every fall: Sunday Night Football. The company also just re-launched NBA coverage on the network and has agreements with many other signature sports events each year. NBC Sports is a major player for the Sunday night audience, and placing Sunday Night Baseball on the map during the summer makes sense.
As much as I would hate it, could we see NBC broadcast a Super Bowl and World Series in the same year down the road?
The Business of Baseball
This is the business of baseball. The owners don’t care about the cost and hassle for fans to watch baseball from home. Neither does Manfred. He represents the ownership group of baseball, and with time, everything becomes more expensive.
Just like media rights in professional sports. If baseball isn’t making ten billion per season from whatever collection of networks buys the rights for 2029 and beyond, it’s a swing and a miss. Honestly, he should step down if that happens.
The next three years will define Manfred’s legacy as commissioner of baseball. If he’s able to secure a deal where baseball leapfrogs the NBA in media rights value, put him in the hall.
For today, give a tip of the cap to Manfred. The business of baseball is booming under his leadership, and these short-term media rights deals are the latest example. It’s a modern-day big business grand slam.
Now, Manfred’s fate is on the clock to do it again.
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John Mamola is Barrett Media’s sports editor and daily sports columnist. He brings over two decades of experience (Chicago, Tampa/St Petersburg) in the broadcast industry with expertise in brand management, sales, promotions, producing, imaging, hosting, talent coaching, talent development, web development, social media strategy and design, video production, creative writing, partnership building, communication/networking with a long track record of growth and success. He is a five-time recognized top 20 program director in a major market via Barrett Medi’s Top 20 series and has been honored internally multiple times as station/brand of the year (Tampa, FL) and employee of the month (Tampa, FL) by iHeartMedia. Connect with John by email at John@BarrettMedia.com.
