ESPN chairman says network still interested in MLB deal despite opt-out
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ESPN remains interested in a potential Major League Baseball distribution package, especially one that includes streaming local games, despite recently opting out of its national package with the league three years early, chairman Jimmy Pitaro said Tuesday.
Why it matters: MLB commissioner Rob Manfred has been clear that he believes the regional sports network model that baseball relied on for decades to distribute local games can't be fixed.
- He instead wants to nationalize the league's local rights under one streaming entity when the majority expire in three years.
Catch up quick: ESPN and MLB "mutually agreed" to end their 35-year national TV rights deal after this season, the league announced in February.
- MLB has called ESPN's demand to reduce rights fees "simply unacceptable" while ESPN reportedly believes it's overpaying the league by more than $300 million.
The latest: Speaking to reporters at a press event in New York City, Pitaro said ESPN is "ready to listen when the league is ready to have a conversation" about a new distribution deal that could include local rights.
- "We are not in conversations with them," he said.
- "I'm assuming — I don't know for sure — they are out there testing the market, which is their right to do," Pitaro added.
- "But we love the game of baseball, and we would like to figure something out with them, ultimately ... And yes, that includes local in-market games."
The big picture: MLB sees its ESPN breakup and the chaotic bankruptcy of RSN group Diamond Sports (now known as Main Street Sports Group) as a broader opportunity to overhaul its entire distribution strategy.
- Its national media rights expire this year and its local broadcast rights expire in 2028.
State of play: MLB is currently in talks with several networks — including NBC Sports, Amazon and Netflix — about new deals to air its national TV rights package through 2028, per Puck.
- Those talks, which appear preliminary, could also set the MLB up for a larger discussion about simplifying its local rights with one streamer when its national rights expire.
- In November, Amazon struck a deal for MLB games produced by local RSNs, making them available to Prime Video subscribers as an add-on. The agreement was part of a broader deal to help Diamond emerge from bankruptcy.
- NBC's parent company Comcast owns some RSNs that carry MLB games. Netflix currently has no baseball rights, but is looking to invest in sports as it beefs up its live content portfolio.
Of note: Fox, one of MLB's national TV partners, has a deal with MLB that runs through 2028.
- Warner Bros. Discovery's TBS is the MLB's other national TV partner. WBD CEO David Zaslav has indicated that the company doesn't plan to invest much more in sports rights outside its current deals.
In recent months, the league has started to secure more local streaming rights through MLB.TV that could help it build a national package.
- The league is reportedly considering a deal to license its MLB.TV out-of-market game package to networks and/or digital platforms.
- In March, MLB struck a deal to stream local games for the Athletics, Giants and Phillies during the 2025 season. It inked a similar deal with the New York Mets and SportsNet New York the month prior.
Zoom out: MLB's international ambitions could also factor into its streaming partnership conversations, a source told Axios. Streamers with an international presence could present an interesting opportunity for the league as it looks to grow its fanbase abroad.
- This year, MLB said 28% of its Opening Day players represented 18 different countries and territories outside of the U.S.
- In March, MLB's Tokyo Series became the league's biggest standalone international event in its history.
- The league has its eyes on broader expansion opportunities in other parts of Asia, the U.K. and Latin America. Its international audience, a source said, often follows the diversity of the league's players.
What they're saying: "The explosion in popularity in Korea and Japan is going to create an opportunity to fundamentally change the way we sell our media rights," Manfred told The Athletic in March.
- "We've traditionally sold them in (individual) countries, and I think in 2028 they will be sold as part of an international package that will help us drive our media revenue in general."
What to watch: In order to fully nationalize the league's local sports rights deals, Manfred needs buy-in from teams in bigger, more lucrative markets.
- Those clubs, like the Yankees and Los Angeles Dodgers, also own their RSNs and would need to agree to pool their local TV revenue with smaller market teams.
- Other leagues have struggled to get team owner support. New York Knicks and Rangers owner James Dolan, for example, blasted the NBA's new TV deal for eating away at local exclusive games last year.
