ESPN said this after MLB and ESPN agree on record eight-year deal.
How ESPN can afford to sign the biggest deal in MLB broadcasting history?
Let's go back to January 5, 1989, the first time when Major League
Baseball signed a $400 million deal with ESPN. In 1996, ESPN renewed a
five-year contract with Major League Baseball worth $440 million and about $80
million per year. In 2001, the new contract were worth $141.8 million per year
and $851 million overall. ESPN, then the
current rights holder, signed an eight-year contract with Major League
Baseball, ESPN will pay baseball $273.5 million in 2006, $293.5 million in each
of the following four years, $308.5 million in 2011 and $306 million in each of
the final two seasons.
Then, on August 28,2012, MLB and ESPN agreed on new eight-year
contract worth 5.6 billion dollars. It is 700 million per year. What is the
difference lead to huge raise about Major League Baseball broadcasting rights?
After checking the new agreement, I found that this new agreement
covers TV and radio rights to MLB programming both in the U.S. and
internationally. In addition, ESPN MLB game telecasts and other baseball
programming will be available on ESPN3.com and the Watch ESPN app.
The pictures show the materials we can watch on the website and app
in the smartphone.
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Eight years ago, Mark Zuckerberg just founded Facebook for one year.
Now, MLB can charge an increase of 100 percent to 700 million dollars per year
over its current deal with ESPN. The internet and mobile platform changes the
value of sports media business. Moreover, in the past several years, ESPN
gradually becomes the most valuable company in Disney Group.
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