Despite ESPN and the MLB forming a contractual pact that keeps them together through the conclusion of the 2028 MLB season, there is flexibility to opt out sooner than that should either side want to move on. The question becomes, who will blink first?
According to the New York Post, each of ESPN and the MLB have opt-out clauses in their current contracts that allow either side to walk away after the 2025 season. Based on the agreement, ESPN is paying $550 million per season, which is significantly less than FOX Sports and Warner Bros. Discovery are paying.
FOX is currently paying an average of $730 million per season while Warner Bros. Discovery is paying $470 million per season. While ESPN’s number is greater than Warner Bros. Discovery, the latter is paying 65 percent higher than the previous rates from a prior agreement.
While the MLB hasn’t necessarily done anything to warrant ESPN’s decision to potentially opt out after the 2025 season, competing sports leagues could motivate ESPN to explore other options. The NBA has a contract with ESPN that will last through the 2024-25 season.
ESPN is currently paying $24 billion annually to have television rights to the NBA and reports indicate that the NBA could be looking for twice that amount of money in their next set of contract agreements.
With that in mind, it’d make sense for ESPN to back out of its deal with the MLB to prioritize the more lucrative option. Whatever happens between now and then, the MLB and ESPN are contractually obligated to stay together for at least two more seasons.
