MLB makes shock decision to split from ESPN

MLB and ESPN are set to part ways having “mutually agreed” to end their 35-year broadcasting partnership at the end of the 2024 season.

The shock news was broken by The Athletic on Thursday, sending shockwaves through the sport. In a letter written to MLB clubs by commissioner Rob Manfred, the league chief explained that he had “not been pleased with the minimal coverage that MLB has received on ESPN’s platforms over the past several years outside of the actual live game coverage.”

There was a deal in place for the MLB-ESPN agreement to remain in place from 2026-28 but there was an opt-out for both sides, which has been triggered. The regular MLB coverage will continue through the 2025 season, the last year of the current deal.

Manfred explained the decision: “In order to best position MLB to optimize our rights going in to our next deal cycle, we believe it is not prudent to devalue our rights with an existing partner but rather to have our marquee regular season games, Home Run Derby and Wild Card playoff round on a new broadcast and/or streaming platform.”

How much does ESPN pay for MLB rights?

As is often the case, money was the driving factor in this split. ESPN was pushing for the MLB to take a lower rights fee than the previous deal, signed in 2021.

ESPN currently pays an average of $550 million per year for television broadcast rights to games. This is less than the primary rights holders pay for NBA and NFL games, but significantly more than other alternative platforms are paying for baseball rights. Apple’s deal is worth around $85 million a year, while Roku pays just $10 million per season for limited rights.

While there is some truth in the suggestion that ESPN are currently overpaying, the MLB have stressed that they have a much more attractive package with exclusive regular season windows and the exclusive rights to an entire round of postseason action.

Manfred’s letter explained: “Publicly and privately ESPN has pointed to lower rights fees paid by Apple and Roku in their deals with MLB. We believe arguments based on the Apple and Roku deals are inapt and we have rejected ESPN’s aggressive effort to reduce rights fees for several reasons."

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