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MLB Ends 35-Year ESPN Partnership Over $350M Rights Fee Cut

ESPN's decision to slash MLB's annual rights fee from $550 million to $200 million led to the league seeking new broadcast partners.

Oct 23, 2024; Inglewood, California, USA; Stephen A. Smith (Stephen Smith) on the ESPN NBA Countdown live set at Intuit Dome. Mandatory Credit: Kirby Lee-Imagn Images

Overview

  • ESPN opted out of its MLB contract after proposing a drastic reduction in annual rights fees from $550 million to $200 million.
  • The network's focus shifted to more lucrative deals, such as a $2.6 billion annual commitment to the NBA, leaving MLB undervalued in comparison.
  • MLB is now exploring partnerships with platforms like Amazon, Netflix, and NBC but faces challenges in matching ESPN's previous financial terms.
  • ESPN's declining reach, with viewership dropping from 100 million homes in 2011 to 53.6 million in 2024, played a role in its decision to de-prioritize MLB.
  • The fallout raises questions about MLB's ability to maintain its national presence and whether streaming platforms can adequately replace ESPN's influence.