MLB warns ESPN it could walk away from deal if network exercises opt-out

The future of Major League Baseball’s national media rights deal is looking more uncertain.

According to a report by Evan Drellich and Andrew Marchand in The Athletic, the league is threatening to walk away from a new deal with ESPN should the network exercise its opt-out following the 2025 season.

Under the current terms of the agreement, both ESPN and MLB have an option to opt-out of the seven-year deal, ending the current contract that is set to go through 2028 after the 2025 season concludes. Should either side seek to exercise its option, they’d have to do so in March of this year.

Considering MLB’s posturing, it’s unlikely they have any interest in exercising the opt-out. However, it’s long been rumored that ESPN is likely to opt-out and attempt to restructure a more favorable deal with the league. ESPN currently pays the league $550 million per season for its media rights package which includes Sunday Night Baseball and a Wild Card series in the postseason.

For comparison, Fox pays approximately $728 million per year for its package which includes the World Series and an LCS, in addition to early round playoff and regular season games. Warner Bros. Discovery pays $535 million per year for its package which includes an LCS and non-exclusive regular season games.

Last year, John Ourand of Puck reported ESPN was upset in the value it receives from its package compared to other broadcasters. After all, ESPN’s package is not all too different from Apple, which pays a considerably less expensive fee of $85 million per year for exclusive Friday night games.

The Athletic report mentions ESPN’s interest in local MLB rights as the network prepares to launch “Flagship,” its direct-to-consumer streaming service, this fall. However, most clubs are tied into deals beyond next season — especially ones that could be seen as subscription-drivers for ESPN’s future streamer.

Should MLB walk away from a deal with ESPN, the league would be searching for ways to recoup more than half-a-billion dollars per year in lost revenue. That won’t come easy in today’s television landscape.