MLB threatening ESPN amid contract negotiations?

ESPN has been broadcasting Major League Baseball games for nearly 40 years, but it may take a tense negotiation to keep the partnership alive beyond next season.

MLB and ESPN have a mutual opt-out clause in their current media rights deal that can be exercised by either side in March. If neither side opts out, their current seven-year agreement would continue through 2028. An opt out without a new deal would mean the two sides part ways following the 2025 season. ESPN is more likely to opt out in an attempt to secure more money, but that would be a risky decision.

According to a report from Evan Drellich and Andrew Marchand of The Athletic, MLB has warned ESPN that it could look to sell its TV rights elsewhere if the network opts out by next month, which is the deadline to exercise the opt-out clause.

MLB commissioner Rob Manfred said at the league’s owners meetings on Thursday that discussions remain ongoing with ESPN.

“We talk to ESPN all the time,” Manfred said. “They’re one of our big partners. … We both have an out in March of this year. Obviously, ‘25 is set. Yeah, we’ll continue to talk to them. And each side will make a decision whether they want to do anything with that.”

ESPN has broadcast “Sunday Night Baseball” since 1990. The network pays an average of $550 million per year for its MLB rights. The expectation is that ESPN will opt out of the current deal, The Athletic reports.

ESPN chairman Jimmy Pitaro said over the summer that the network is exploring team-specific MLB deals but would prefer a larger agreement with a group of teams. That is likely Pitaro’s way of trying to maintain leverage in the event that ESPN opts out.

Ratings for “Sunday Night Baseball” were their highest this season since 2019. Both sides should be motivated to keep the partnership going, but the opt-out clause exists for a reason.