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Tv Deals Newsbeat

Friday, January 08, 2021

Latest Report of MLB’s Reduced ESPN Deal May Not Tell Whole Story

A Friday report from Ken Rosenthal of The Athletic stated rather ominously that Major League Baseball is “bracing for a reduction in TV rights fees in pending ESPN deal,” but I think the rest of the story might be missing. Let’s first take a look at what Rosenthal wrote.

MLB’s previous deal with ESPN was an eight-year, $5.6 billion contract worth $700 million per year. The agreement under discussion would be for seven years and approximately $3.85 billion, reducing the average annual value to about $550 million per year, sources said.

Seems like a lot when you consider the $1.75 billion drop, though that figure loses some of its bite when you realize it’s just $150 million annually or $5 million per team per season. The decreased revenue becomes even less substantial when you understand that it a result of ESPN decreasing the number of games it carries, games that could then be sold to other broadcasters.

RoyalsRetro (AG#1F) Posted: January 08, 2021 at 03:32 PM | 23 comment(s)
  Beats: tv deals

 

 

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