NBCUniversal is reportedly making a bid for the Major League Baseball (MLB) game rights that ESPN dropped earlier this year. The Wall Street Journal, citing unnamed sources, broke the news, noting the offer is significantly lower than ESPN's previous payment.
In February, ESPN opted out of the last three years of its deal with MLB, ending a $550 million annual payment. While the exact amount of NBCU's offer remains undisclosed, sources suggest it's considerably less. This reduction likely stems from NBCU's reported exclusion of international and radio rights, unlike Disney's previous agreement. They also reportedly passed on highlight clip rights.
A successful bid would see NBC air Sunday night games. This, along with the network's NFL deal and returning NBA games, strengthens NBC's live sports portfolio. This significant sports investment requires schedule adjustments. Five shows were canceled to accommodate the increased sports programming, reflecting a shift towards live content over scripted and unscripted series.
This strategic move aligns with the changing television landscape. Live sports remain strong on linear and streaming platforms, attracting real-time viewership and loyal audiences. The ability to distribute rights across linear and streaming platforms is attractive, allowing networks to maximize revenue streams.
Despite the substantial cost of sports rights (typically hundreds of millions of dollars), the economics remain appealing. Deals usually include numerous games, potentially making the cost per hour more efficient than traditional shows, even accounting for production, salaries, and other expenses. ESPN reportedly offered $200 million annually for the remaining three years but was rejected by MLB.
MLB is reevaluating its media deals, possibly consolidating them after 2028. A new model might involve teams allowing MLB to sell local rights for a streaming service, with teams receiving a revenue share. This service could offer paid removal of blackouts on a per-team basis.
Beyond linear rights, NBC is interested in streaming rights for Peacock and may pursue first-round postseason games and the Home Run Derby.