MLB hits long ball to ESPN
The pact, which calls for the cable channel to broadcast 70-80 games a season (compared to 150 this year, its last under a four-year deal), is the same duration as an earlier six-year network agreement with ABC and NBC that created a sales and revenue-sharing apparatus in which the League and the webs will jointly sell ad time during the games.
The ESPN arrangement -- which also provides such concessions as reducing the network's "blackout" radius and the right to cut into live games, not just during baseball programming -- translates to a fee of $ 42.5 million a year, 56% less than the annual payment under the last four-year, $ 390 million pact.
ESPN -- which is 80% owned by CapCities/ABC, with the balance held by Hearst Corp. -- paid a $ 13 million penalty in October 1992 in declining to exercise its option on the 1994 and '95 baseball seasons, for which the network would have had to pay $ 250 million, almost three times its annual payout under the new agreement, which runs through 1999.
The pact continues a major decline in broadcast revenues for baseball, which is in the last year of a four-year, $ 1.06-billion contract with CBS. The revised deals follow estimated losses of $ 275 million and $ 200 million posted by CBS and ESPN, respectively, on their previous contracts.
Prior to this year's expansion into Colorado and Florida, the 25 Major League franchises split nearly $ 15 million from the two TV deals. With revenue from the ABC-NBC pact yet to be determined, it's estimated the figure could be half that for 1994.
Separately, MLB announced a six-year extension with CBS Radio valued at $ 50. 5 million, about 35% less than a previous four-year agreement between the parties.
New elements of the ESPN-baseball arrangement include joint development of multimedia products, such as homevideo games and on-line computer services, and joint development of children's programming for ESPN2, a second channel that continues to pick up coverage as ABC and Hearst reach retransmission consent deals linked to the service.
Another key facet of the pact is the creation of a single season-opening Sunday game that ESPN will televise prior to the traditional Monday start of the regular season.
ESPN will continue to televise events surrounding the All-Star Game, divisional tie-breakers and any games during the last two weekends of the season that affect pennant races.
In cutting the number of games carried, ESPN will still air a weekly Sunday-night game in addition to a Wednesday double-header. The pact also allows the service to air triple-headers on holidays (Memorial Day, Fourth of July and Labor Day) and opening day.
Beginning next season, ABC and NBC will each air six Friday-night primetime games after the All-Star break and split up rights to the League Championship Series and World Series on a rotating basis. Baseball has suffered declining ratings in recent years for its Saturday afternoon game.
Only two of the 27 franchises voted against the ESPN offer -- with reports that one of them was the New York Yankees, situated in the U.S.' largest media market. The team already reaps significant revenues through its local broadcast arrangements.
