Reasoning Behind Reconsidering an Alliance with ESPN by MLS Following their Split from MLB
For thoseDie-hard fans of both Major League Soccer (MLS) and Major League Baseball (MLSB), the recent news that MLB was cutting ties with ESPN might feel like a repetitive deja vu. After both sides exercised their opt-out clause in a seven-year, $3.85 billion deal, MLB's partnership with ESPN, spanning over 35 years, will end three years early in 2025.
Remember when MLS ended its 27-year collaboration with ESPN? Well, this is strikingly similar. Despite the frustration from MLB's camp for ESPN's lackluster promotion of their product outside of games, ESPN likely believed the deal's value wasn’t worth the hefty fee it was paying MLB. Subsequently, ESPN also showed less interest in MLS rights if they didn’t involve U.S. national team games or local broadcasts via its ESPN+ service.
However, MLS' current 10-year, worldwide streaming partnership with Apple TV might offer an opportunity to reconnect with ESPN. As MLS prepares for its third season with Apple TV, streaming rights to every MLS regular season, Leagues Cup, and MLS Cup Playoff game, MLB's ESPN departure could open possibilities for a similar arrangement as the one MLS holds with Fox Sports.
Though MLS failed to keep ESPN as a simulcast partner back in 2022, conditions have changed. Here are some compelling reasons why both sides might benefit from reconvening:
- Content Availability for ESPN: During summertime, ESPN faces a lack of major men’s professional sports due to its NFL, NBA, and NHL commitments. With MLS yet to transition to a fall-to-spring schedule, the meat of the MLS regular season and/or the Leagues Cup tournament might intersect well with this gap.
- Production Costs Assistance: One of MLS's responsibilities under its Apple TV agreement is to cover broadcast production costs. These expenses have reportedly taken a financial toll, as on-air talent received paycuts in Year 1, and some commentators were relegated to calling games from remote studios in Year 3. ESPN's vast resources could potentially assist MLS with cost-efficient production.
- Timing is Right: ESPN's summer schedule lacks content, but thanks to the arrival of Lionel Messi and the 2026 FIFA World Cup being hosted in the United States, Canada, and Mexico, MLS appears more appealing. Additionally, ESPN may be interested in MLS rights if Fox's deal with MLS expires by 2026.
- Competition from USL's Division One Project: With USL announcing intentions to launch a first-tier men's league by 2027 or 2028, securing ESPN as a cable partner could strengthen MLS' case as the top domestic club competition and help deter competition from USL.
- ESPN's Canadian Investment: Although ESPN has not shown any MLS matches on American television since 2022, the network holds a minority stake in TSN and RDS in Canada. The stations currently broadcast 41 regular season matches annually, as well as select Leagues Cup and MLS Cup Playoff matches.
So, while baseball enthusiasts might mourn ESPN's departure, MLS and ESPN's potential collaboration could yield benefits for both parties.
- Given ESPN's lack of major sports content during the summer due to NFL, NBA, and NHL commitments, MLB's decision to part ways could potentially offer an opportunity to broadcast MLS games during this time period.
- With MLS facing financial strain due to covering broadcast production costs under its Apple TV agreement, a collaboration with ESPN could provide assistance with cost-efficient production, as ESPN has vast resources to offer.
- The timing seems right for ESPN to consider MLS rights, as the arrival of Lionel Messi and the 2026 FIFA World Cup being hosted in the United States, Canada, and Mexico make MLS more appealing to viewers.
- ESPN may also be interested in MLS rights if Fox's deal with MLS expires before 2026, as they would gain a competitive edge against USL's Division One project, which aims to launch a first-tier men's league by 2027 or 2028.
- As ESPN holds a minority stake in TSN and RDS in Canada, they continue to broadcast MLS matches in Canada, which ensures a stable viewership base despite their absence from American television.
In light of these circumstances, it is likely that both ESPN and MLS may consider renewing their TV rights agreement simultaneously, given the potential benefits for both parties.
