As all of you are likely aware, and as set forth in our memo in April 2021 when the current ESPN national media rights agreement was submitted to you for approval, the agreement provides both ESPN and MLB with the right to terminate the deal on or before March 1, 2025, effective upon the end of the 2025 MLB season.
“Over the past several months, ESPN has approached us with a desire to reduce the amount they pay for MLB content over the remainder of the term. Publicly and privately ESPN has pointed to lower rights fees paid by Apple and Roku in their deals with MLB. We believe arguments based on the Apple and Roku deals are inapt and we have rejected ESPN’s aggressive effort to reduce rights fees for several reasons.
First, the inventory involved in the Apple and Roku deals is very different from the ESPN inventory. The ESPN deal contains the only truly exclusive regular season windows on Sunday nights, the exclusive right to an entire round of playoffs, and the Home Run Derby, one of the most exciting events of the summer. In contrast, Apple and Roku have games that compete against a complete slate of other games broadcast in local markets. In fact, in the last round of bargaining with ESPN, they declined to purchase the inventory we subsequently sold to Apple and Roku. Second, given the strength of our product we do not believe a reduction in fees is warranted. Sunday Night Baseball ratings were up 6% in 2024 over 2023, which is notable given that 2024 was a summer Olympics year. The 2024 MLB Wild Card Series was the most watched ever, averaging over 2.8M viewers per game, up 25 percent from 2023. Our Home Run Derby is the highest rated skills competition in any professional league. In addition, our demographics are extremely attractive. The overall male/female ratio on ESPN is 73/27 while MLB on ESPN is 68/32, with growth among women outpacing men this year. In addition, our Hispanic audience on ESPN is ~10%, significantly above most other sports on their platform.
Third, we do not believe that Pay TV, ESPN’s primary distribution platform, is the future of video distribution or the best platform for our content. As of December 2024, ESPN was available in 53.6M homes, down from its peak of over 100M homes in 2011 and 69M homes when we struck the current deal in 2021.
Furthermore, we have not been pleased with the minimal coverage that MLB has received on ESPN’s platforms over the past several years outside of the actual live game coverage.
Based on the foregoing, we and ESPN have mutually agreed to terminate our agreement. While ESPN has stated they would like to continue to have MLB on their platform, particularly in light of the upcoming launch of their DTC product, we do not think its beneficial for us to accept a smaller deal to remain on a shrinking platform. In order to best position MLB to optimize our rights going in to our next deal cycle, we believe it is not prudent to devalue our rights with an existing partner but rather to have our marquee regular season games, Home Run Derby and Wild Card playoff round on a new broadcast and/or streaming platform.
To that end, we have been in conversations with several interested parties around these rights over the past several months and expect to have at least two potential options for consideration over the next few weeks. To be clear, our games will continue to be on ESPN for the entirety of the 2025 MLB season, including the postseason. Any new deal will commence in 2026. I will be in touch with more information as events warrant.