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.
The Angels signed Japanese superstar Shohei Ohtani for a $2.3 million signing bonus last weekend. They may have damaged goods on their hands. Jeff Passan of Yahoo Sports reports that Ohtani underwent a physical that revealed a first-degree sprain of his ulnar collateral ligament. As a result, he got a platelet-rich plasma injection on October 20. This was made known to teams after Ohtani entered MLB’s posting system, so it wasn’t like the Angels went into this blind.
Ohtani’s report said, “Although partial damage of UCL in deep layer of his right UCL exists, he is able to continue full baseball participation with sufficient elbow care program.” It also said Ohtani “will most likely be available to start his throwing program approximately a month from the PRP.”
Passan notes that the report also mentioned that a “small free body” floats in Ohtani’s elbow near his UCL.
Ohtani isn’t without other injuries. He battled hamstring and ankle issues throughout 2017 and underwent right ankle surgery back in October. Thankfully for the Angels, this diagnosis is about as good as it could be considering the circumstances. However, if Ohtani does exacerbate his UCL issue, he may ultimately need Tommy John surgery at some point, which would take him out of action for at least a year.