MLB and ESPN are reportedly ending their partnership.
ESPN began broadcasting MLB games in 1990, and they reached a new seven-year deal in 2021. They had until March 1 to opt out of the agreement's final three years.
According to The Athletic's Evan Drellich, the two parties "mutually agreed" to end their TV contract after the 2025 season. In a letter sent to MLB owners on Thursday, Commissioner Rob Manfred said he's "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."
Per Drellich, ESPN wanted MLB to lower the current contract's $550 million rights fee.
"While ESPN has stated they would like to continue to have MLB on their platform, particularly in light of the upcoming launch of their DTC (direct-to-consumer) product, we do not think it's beneficial for us to accept a smaller deal to remain on a shrinking platform," Manfred wrote. “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."
In Manfred's letter, he said ESPN requested a lower price because Apple TV and Roku are annually paying $85 million and $10 million, respectively, for baseball rights. However, Manfred called those arguments "inapt" because ESPN has a more comprehensive package that includes Sunday Night Baseball and MLB playoff games.
Apple TV+ streams select games on Friday nights, and Roku began streaming one weekly game early Sunday morning last season.
The commissioner also noted that ESPN was available in 53.6 million homes as of December, down from 69 million when they reached the current agreement in 2021.
Manfred said MLB has talked to "several interested parties" and is considering "at least two potential options." He didn't specify any platforms, and no new deal would take effect until the 2026 season.
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