MLB seeking new broadcast deal: Here's what to know

Key Concepts

• MLB Media Rights Negotiation
• Sports Rights Valuation (NFL, NBA, MLB, European Sports)
• Secular Trends in TV Viewership
• NBA Game Quality & Load Management
• MLB's Plan for National Media Rights Package
• Regional Sports Networks (RSNs)
• Potential Media Rights Buyers (Apple, ESPN, Amazon)

MLB Media Rights and Valuation

The video discusses the challenges MLB faces in securing a significant increase in its national media rights deals after ESPN ended its 35-year partnership. Kevin Mayer, co-CEO of Candle Media and former Disney executive, suggests that the exponential growth of sports rights values (2-3x every ten years) is unsustainable and may flatten out for some sports.

Alex Sherman of CNBC provides context, noting that while the NFL and NBA have seen their rights values double and almost triple, respectively, this isn't the case for all sports. European sports rights, including the English Premier League, have even slightly declined in value.

Secular Trends and Viewership

The decline in value for some sports rights is attributed to secular trends, specifically the decrease in overall TV viewership over the past decade. While the NFL remains wildly popular and the NBA maintains a strong media presence due to its appeal to advertisers and "undroppable" status for pay-TV providers, other sports are feeling the impact of changing viewing habits.

NBA Game Quality and Load Management

The discussion shifts to the NBA, where concerns are raised about the quality of the regular season games. Specific criticisms include:

• Over-reliance on three-pointers: The game's style is perceived as having gone too far in one direction.
• Load management: Star players frequently miss games, diminishing the viewing experience for fans who have bought tickets or tuned in to watch specific players like LeBron James or Luka Dončić.

The playoffs are acknowledged as having a higher quality of play, but the regular season is seen as having issues that detract from its appeal. The impact of March Madness on NBA viewership is also briefly mentioned as a form of competition for eyeballs.

MLB's National Media Rights Strategy

Major League Baseball's plan to increase its media rights revenue involves creating a broader national package of local games, which currently doesn't exist. The goal is to emulate the NFL and NBA by offering a more attractive national product that could appeal to major media players like Apple, ESPN, and Amazon.

Currently, regional sports networks (RSNs) own the regional rights, but this is expected to change after the 2028 season when MLB's major rights come up for renewal.

Potential Media Rights Buyers

The potential buyers for MLB's national media rights package include:

• Apple: A tech giant with a growing interest in sports content.
• ESPN: The established sports broadcasting leader.
• Amazon: Another tech giant with significant resources and streaming capabilities.

Conclusion

The video highlights the challenges MLB faces in securing a significant increase in its media rights deals due to changing viewership habits and the unsustainable growth of sports rights values. MLB's strategy involves creating a national package of local games to attract major media players. The discussion also touches on the NBA's game quality issues and the impact of load management on the viewing experience. The key takeaway is that the landscape of sports media rights is evolving, and MLB needs to adapt to the changing environment to maximize its revenue.