Major League Baseball and Turner Sports announced Thursday morning a seven-year media rights extension that will last until the 2028 season. John Ourand and Eric Prisbell of “Sports Business Magazine” report that the agreement will enable Turner Sports to pay approximately $535MM per year in the new agreement, which is higher than before. The annual traded 325MM USD increased by 65%. This will bring the total expansion value of Major League Baseball to $3.7 billion.
This is the latest media copyright transaction of Major League Baseball (MLB) to obtain huge profits. Less than two years ago, MLB and FOX Sports announced a media copyright extension involving the same 2022-28 span, reportedly worth US$5.1
The latest windfall of the Major League Baseball (MLB) came when the bosses of the entire league were hit by loss of income, which caused weird comments about the lack of profits in baseball. Cardinal Chairman Bill DeWitt Jr. stated earlier this summer that the baseball industry “is not profitable to be honest.” This is a satirical comment that prompted many to point out that DeWitt buys The Cardinal, currently estimated to be worth $2.2 billion, was reportedly purchased for 150mm a quarter ago. However, other owners have made similar bold claims.
For example, Cubs owner Tom Ricketts said to ESPN’s Jesse Rogers that he regretted the loss of the “Bible” in 2020.[Owners] Raise all possible income from tickets and media rights, and then they pay for it, and then leave all the remaining money to General Motors. The league itself does not make a lot of money. “
The comments made along these lines go hand-in-hand with multi-billion-dollar agreements, such as today’s Turner deal and the 2018 FOX postponement, will only stir up growing tensions between MLBPA and MLB owners. This kind of tension proved extremely harmful earlier this year, because the two sides had a dispute over the proposed economic factor in a few months. This was a controversial back and forth and did not reflect both parties well. .
The mistrust between the two sides will continue to exist in a unique offseason, and many teams hope that free agents are frustrated because the team wants to make up for the lost revenue. Moreover, all of these are with the current collective bargaining agreement between Major League Baseball and Major League Baseball with only more than one year left, which will expire in December 2021.
Speaking of the details of today’s agreement, TBS will continue to broadcast one universal card game every year, two divisional series and one league championship series. The agreement also introduces a new, full-season “Tuesday Night Baseball” program, which will begin in 2022 and will be hosted by Ernie Johnson and conducted from Pedro Martinez, Jimmy Rollins with Curtis Grandson. As one might expect, the agreement also has a digital part that allows Turner to grant streaming media access through various platforms.
WarnerMedia News and Sports Chairman Jeff Zack said: “We are very pleased to maintain a long-term relationship with Major League Baseball. This agreement provides us with all opportunities because we expand our presence on all platforms. Game coverage.”
Major League Baseball Commissioner Rob Manfred added: “The agreement provides a new Tuesday night baseball franchise and expands on Turner Sports’ digital platform by continuing to report on TBS’s playoffs. The number of baseball seats has allowed the two organizations to grow with each other.”
It’s also worth noting that today’s agreement (such as the FOX deal in 2018) revolves around the existing 10-team playoff format featuring a sudden-death universal card game. At the same time, Commissioner Manfred has expressed his hope that, in the long run, this year’s expanded playoff format will continue. Doing so seems to create an additional opportunity for Major League Baseball (MLB) to sell the rights to some of the newly created playoff rounds, whether it’s to Turner Sports, FOX or other major stores.
Various reports have expanded the format of this year’s playoffs, bringing TV revenues of US$200-300MM to the league. Players need to sign the permanent playoff expansion, but this will definitely become a key topic in the aforementioned wave of upcoming collective bargaining.