In a dramatic reversal of fortune, Major League Baseball has unveiled a sweeping new three-year media rights agreement, bringing ESPN back into the fold while welcoming NBC and Netflix as new broadcast partners. The deal, announced on Wednesday, concludes nine months of complex negotiations that began when ESPN opted out of its previous contract in February.
A Tripartite Agreement Reshapes Baseball Broadcasting
The new arrangement sees the league's broadcast rights split three ways, with the combined packages averaging nearly $800 million per year. ESPN will remain a significant player, paying $550 million annually, while NBC commits $200 million and Netflix $50 million each year. This collaborative approach marks a significant shift from the previous model and reflects the evolving landscape of sports consumption.
Commissioner Rob Manfred successfully maximised the value of key properties, including the Home Run Derby and the Wild Card Series. The renegotiated deal grants ESPN a highly valuable asset: the rights to the MLB.tv out-of-market streaming package, which will be integrated into the ESPN app. This move mirrors the platform's 2021 acquisition of the NHL's out-of-market package.
New Homes for Marquee Events and Weekly Slates
The broadcast landscape for fans will change significantly starting next season. NBC and its streaming service Peacock will become the new home for Sunday Night Baseball, taking over the prime weekly slot. The network, which celebrates its centenary next year, has a long history with baseball, having carried games from 1939 to 1989. Its first broadcast will be on 26 March, featuring the defending champion Los Angeles Dodgers hosting the Arizona Diamondbacks.
NBC's package also includes the Wild Card round, a prime-time game on Labour Day, the Major League Futures game, and coverage of the first round of the MLB amateur draft. The return of early-afternoon Sunday games to Peacock will be complemented by a new studio Whip-Around Show leading into the night game.
In a major coup for the streaming giant, Netflix secures the rights to the Home Run Derby and several other high-profile games. This aligns with its strategy of acquiring major sporting events, following its NFL Christmas Day games. Netflix will also broadcast the first game of the season on 25 March, featuring Aaron Judge's New York Yankees at the San Francisco Giants, and the MLB at Field of Dreams game on 13 August.
Strategic Shifts and Future Implications
For ESPN, the new deal represents a strategic pivot. While it loses postseason games and the Home Run Derby, it gains the lucrative MLB.tv and secures in-market streaming rights for six teams whose games are produced by MLB: San Diego, Colorado, Arizona, Cleveland, Minnesota, and Seattle. The network will also broadcast 30 games, primarily on weeknights during the summer.
These new agreements set the stage for Commissioner Manfred's future vision. He has expressed a desire for MLB to adopt a more national approach to its media rights, moving away from the current heavy reliance on regional sports networks. With existing deals with Fox and Turner Sports, which pay an average of $729 million and $470 million per year respectively, set to expire after the 2028 season, this new tripartite deal establishes a powerful precedent for the league's next round of negotiations.
