America’s most dominant sports network just walked away from baseball after 35 years, and the reason reveals everything wrong with modern sports media economics.
Story Snapshot
- ESPN terminated its MLB broadcasting partnership on February 20, 2025, ending a relationship dating back to 1990
- The network balked at paying $550 million annually while Apple pays just $85 million and Roku pays $10 million for baseball packages
- MLB rejected ESPN’s demand for fee reductions, citing the network’s diminished baseball coverage and prioritization of other sports
- Baseball fans will need multiple streaming subscriptions to watch games starting in 2026 as fragmentation replaces traditional broadcasting
- A new ESPN-MLB agreement for 2026-2028 was eventually reached, suggesting reconciliation after initial tensions
The Morning ESPN Pulled the Plug on Baseball
On February 20, 2025, at 9:45 AM Eastern, ESPN executives delivered the news that would end an era. They informed Major League Baseball they were exercising their opt-out clause from a seven-year, $550 million annual rights agreement signed in 2021. By afternoon, ESPN President Jimmy Pitaro followed up with Commissioner Rob Manfred. Within hours, Manfred sent a memo to all 30 team owners characterizing the decision as mutual before ESPN could make its public announcement. The speed of that characterization raises questions about who actually controlled the narrative.
When the Math Stops Making Sense
ESPN’s decision becomes comprehensible when you examine what other networks pay for baseball. Apple secured Friday Night Baseball for seven years at $85 million annually. Roku grabbed Sunday afternoon games for three years at $10 million per season. ESPN was paying $550 million every year for comparable access. The network was hemorrhaging money on baseball while cable subscriptions collapsed and streaming competitors acquired similar content at a fraction of the cost. Financial discipline dictated the exit, regardless of tradition or sentiment.
The Coverage That Disappeared
MLB’s frustration extended beyond dollars. Commissioner Manfred made clear the league had grown increasingly displeased with ESPN’s treatment of baseball outside actual game broadcasts. The network scaled back its baseball programming, analysis, and promotional efforts while prioritizing basketball and football content. ESPN’s massive NBA contract commitments further signaled where the network’s strategic priorities resided. Baseball became an afterthought on a network that once made Sunday Night Baseball appointment viewing for millions of Americans.
Who Holds the Leverage When Cable Dies
Traditional media rights negotiations assumed cable television’s permanence. That assumption no longer holds. ESPN faces declining viewership and subscriber losses while maintaining enormous financial commitments to multiple sports leagues. MLB possesses exclusive content rights but confronts a fragmented market where no single partner dominates distribution. Streaming services demonstrated willingness to pay for baseball at dramatically lower rates, fundamentally altering the negotiating landscape. The balance of power shifted, and both sides had to acknowledge the new reality.
The Fragmentation Fans Will Navigate
Starting in 2026, baseball fans need access to multiple platforms to watch games. NBCUniversal, Netflix, Apple, Roku, and eventually ESPN again through a new agreement will all broadcast different game packages. This mirrors the broader transformation across sports broadcasting where single-source access has been replaced by platform proliferation. Casual fans may struggle with subscription requirements and navigation complexity. Cord-cutters benefit from streaming options but pay through multiple monthly fees rather than one cable bill. The convenience that defined ESPN’s original value proposition has disappeared entirely.
What Small Markets Lose in the Shuffle
Commissioner Manfred is planning something more radical for 2028 when all national deals expire. He wants to combine every team’s local broadcasting rights into a national package, fundamentally restructuring how regional baseball gets distributed. This threatens small-market teams that historically depended on local cable revenue to remain competitive. Teams in cities like Kansas City, Milwaukee, and Cincinnati built business models around regional cable deals that guaranteed revenue regardless of national appeal. That model is dying, and what replaces it may concentrate even more resources in major markets like New York, Los Angeles, and Boston.
The Reconciliation Nobody Saw Coming
Despite the contentious opt-out, ESPN and MLB announced a new agreement covering 2026 through 2028 featuring national and local rights. This suggests the mutual characterization may have been more accurate than initial reporting indicated, or both parties recognized they needed each other more than their public statements acknowledged. The new deal likely involves significantly reduced fees for ESPN and expanded promotional commitments from the network. Both sides apparently concluded that complete separation served neither party’s interests, particularly with streaming competitors circling and traditional broadcasting continuing its decline.
Sources:
Sports Business Journal: Source: ESPN says opt out of MLB deal was its decision
MLB Press Release: Major League Baseball Statement on ESPN Partnership
MLB Trade Rumors: ESPN, MLB Opt Out Of TV Deal For 2026-28
Sportsepreneur: ESPN Opts Out of MLB Package
SI.com: MLB Expanding Digital Presence With New Media Rights Contracts
ESPN Press Room: ESPN, Major League Baseball Reach Innovative New Agreement


















