ESPN could still find a way to stream live baseball games after it opted out of its media contract with the MLB last week. With the upcoming launch of the ESPN Flagship app later this year, a bundle with Main Street Sports Group’s FanDuel Sports Networks RSNs could be offered, per a report from the Wall Street Journal.
Details from the WSJ report:
Main Street has discussed potentially bundling its streaming offering with ESPN’s flagship direct-to-consumer service, which is scheduled to launch later this year, according to people familiar with the matter. Such a partnership would represent a way for ESPN to offer baseball without making hefty rights payments and still earn additional revenue from the bundle.
ESPN has chosen to opt out of its existing deal with MLB, which was initially set to run through the 2028 season. Citing the $550 million per season price tag as excessive, the network sought to renegotiate at a lower cost. However, negotiations fell apart, with reports indicating that the split between ESPN and MLB was not mutual.
The WSJ report has more details regarding the discussion between baseball and the network:
Pitaro [ESPN president] said he was open to discussing an entirely new deal at a lower valuation. Manfred [MLB commissioner], annoyed by the suggestion, quickly shut down any possibility of accepting less money. (ESPN would have been looking to cut its deal with MLB by more than half, to no more than $200 million a year, people familiar with the matter said.)
If the two sides are unable to renegotiate, MLB will have to look elsewhere for a media partner and recoup the $550 million for the 2026 through 2028 seasons. It could look to expand its partnership with Apple, who secured Friday Night Baseball doubleheaders for approximately $85 million per year in 2022. Another option is Roku, who agreed to MLB Sunday Leadoff rights for three years that average around $10 million per season. However, the end game for the MLB is to package its local and national rights into a massive media deal when the league looks to renew in 2028. This deal could be a homerun for fans, with the end of blackouts, plus streaming on a centralized platform instead of a fragmented RSN market.
For ESPN, its Flagship app is expected to have a $25 to $30 monthly price tag. Subscribers will have to access live NFL, NBA, college football and basketball games, and other live sports on ESPN networks. If the app offers FanDuel Sports Networks or other RSNs as a bundle or add-on, sports fans will have another way to watch their local teams without the hassle of cable. Additionally, the ESPN Flagship app will reportedly have user-generated content as it looks to compete with YouTube.
Earlier this year, Main Street Sports Group CEO David Preschlack said his company was “open for business” while discussing potential future partnerships and joining forces with other RSNs. FanDuel Sports Network’s RSNs recently became available on Prime Video, giving fans access to live in-market games and exclusive content for 30 NHL, NBA, and MLB teams. With subscriptions starting at just $19.99 per month, sports enthusiasts can now stream their favorite teams directly through the Prime Video platform. A partnership with the ESPN Flagship app could prove to be another home run for a company that recently emerged from bankruptcy.
