We talked about lucrative local TV rights yesterday. Let’s talk national: ESPN just agreed to pay Major League Baseball nearly double what it’s paying now to keep baseball rights through 2021:
ESPN has agreed to a deal that locks down MLB rights into the next decade, according to several sources. The eight-year deal is worth $5.6B (an average of $700M per year), approximately doubling the nearly $306M ESPN currently pays MLB every year for domestic TV rights.
That includes digital, radio and, for the first time, the playoffs: one wild card game. Otherwise the deal is basically the same: Sunday Night Baseball and Monday and Wednesday night games.
The current deals with ESPN, Fox and TBS are in place through the end of the 2013 season. As the New York Times reported in July, there is a frenzy afoot, with those three outlets still wanting to keep their games, plus NBC wanting to get in on the action. Clearly those remaining will be in frenzied bidding for the Saturday and Sunday afternoon games, the postseason and any other national products that may be added over and above what exists now.
That’s a recipe for skyrocketing rights fees. And we just saw the first rocket launched.
UPDATE: Putting this money in perspective. Short version: windfall.
MLB.com’s Brian McTaggart reports that umpires Bob Davidson, John Hirschbeck, Jim Joyce, and Tim Welke have retired.
Davidson, 64, was known as “Balkin’ Bob” for his tendency to call pitchers for balks. Davidson has also made a name for himself picking fights with players and managers, as well as unnecessarily escalating situations.
Hirschbeck, 62, didn’t quite have the reputation Davidson had, but he had a couple of notable incidents on his profile as well. Last year, when ejecting Twins slugger Miguel Sano, Hirschbeck said, “Get the [expletive] out of here.” In 2013, he threw a drum of oil on a fire that very easily could’ve been snuffed out with Bryce Harper.
Joyce, 61, was a well-liked and well-respected umpire who will go down in history for one mistake. On June 2, 2010, Tigers starter Armando Galarraga was one out away from a perfect game. Indians second baseman Jason Donald hit a weak grounder about halfway between first and second base. Miguel Cabrera went to his right to field it and flipped to Galarraga covering first base. It was a close call, but Joyce incorrectly ruled Donald safe, ruining Galarraga’s perfect game. To both Joyce’s and Galarraga’s credit, both handled the mistake with the utmost class.
Craig also wrote in detail about Joyce a few years ago. It’s worth a re-read.
Tim Welke, 59, actually announced his retirement last year, but I guess it wasn’t made official until recently. He underwent a left knee replacement procedure in January last year and then had his right knee replaced five months later.
CNBC, citing Reuters, reports that Facebook and Major League Baseball are in discussions to stream one game per week.
Streaming is becoming more and more ubiquitous as it’s a more convenient way for people to access media they like. MLB Advanced Media, which handles MLB’s streaming service, is worth several billions of dollars. Last year, Disney paid $1 billion to purchase a 33 percent stake in BAMTech, the independent company MLBAM launched for its streaming.
Millennials and “Generation Z,” in particular, are driving the streaming trend. Forbes, citing the Digital Democracy Survey in 2015, reported that 56 percent of millennials’ media consumption was done via computer, smartphone, tablet, or gaming device. Those 30 years and older rely on television to watch film and TV shows at a clip higher than 80 percent.
Twitter is already in the sports streaming arena. It streams MLB, NFL, and NHL games as well as the PGA Tour.