Turner will pay 65% more per year for its new deal, compared with the current agreement that expires at the end of the 2021 sesaon.getty images
Turner’s deal to renew MLB rights demonstrates why I have been so skeptical about the idea that Big Tech is going to start outbidding traditional media companies for rights.
Instead of having companies like Amazon or Google swoop in to get these rights, traditional media companies have built their own digital platforms using sports rights — think of ESPN+, Peacock and CBS All Access.
A big part of last week’s Turner extension — in which it will pay around $535 million per year through 2028 — dealt with Bleacher Report, which walked away with expanded highlight rights.
“Obviously, the core of the deal is the broadcast piece,” MLB Commissioner Rob Manfred said. “We think the digital piece is really important as well.”
Like other leagues, MLB sees these digital rights as the best way to attract younger fans, and Manfred expects MLB.com and Bleacher Report to work together to get the sport in front of more of those fans. “It’s important to us in the long haul,” he said.
MLB has cut deals in recent years to stream regular-season games on Facebook, Twitter and YouTube. Manfred described a strategy shift inside MLB offices in recent years to allow non-MLB-owned and controlled platforms to have access to highlights and other MLB content.
“We need to be where young people are — get them the game where they want to watch it,” Manfred said. “Because of the significance of technology and digital products to younger people, it’s really important that we continue to grow our digital offerings — that we offer the game to young people in the way that they want to consume it on the platforms where they want to consume it.”
Turner Sports never let these negotiations get outside of its exclusive negotiating window, so MLB never had the chance to speak to any of the Big Tech companies about it. Turner’s $535 million price tag is a 65% increase compared to the current eight-year deal that averages $325 million a year through the 2021 season.
“We have ongoing conversations with all of the Big Tech companies that have at least expressed interest in eventually being involved in live sports,” Manfred said.
“Those conversations are important in terms of establishing relationships and looking to the future. Frankly, we’re really comfortable with our existing set of partners and their commitment to baseball and their ability to give us the kind of reach that we want, particularly with respect to our postseason.”
John Ourand can be reached at jourand@sportsbusinessjournal.com. Follow him on Twitter @Ourand_SBJ and read his twice-weekly newsletter.
