MLB Considers Shortening Season Amid Changes in Media Revenue
Local Media Revenue Decrease
Historically, MLB’s extensive 162-game season has benefited teams through lucrative local media deals, which accounted for 23% of team revenues in 2022. However, the decline of regional sports networks has prompted MLB to rethink its strategy, including a potential reduction in the regular season length.
Proposed Changes
MLB has proposed a shift to a 154-game season during talks with the MLB Players Association. This change aims to provide players with a weekly off day and allow for the expansion of the Division Series from a best-of-five to a best-of-seven format, set to take effect in 2029 alongside new national TV deals.
Revenue Sources
While ticket sales remain the largest source of revenue for teams, they now represent less than a third of total earnings. Local media rights are expected to decrease from 23% of revenues in 2022 to 17% by 2025, with teams losing millions from the loss of local TV contracts.
Expansion of National TV Deals
MLB is enhancing its national broadcasting landscape, recently adding NBC and Netflix while selling ESPN distribution rights for out-of-market games. This shift reflects major tech companies’ interests in broader national events rather than local games.
Event-Style Games
A key advantage of a shorter season could be a dedicated national broadcast for standalone Monday night games. MLB is focusing on creating event-style matches, moving games to unique venues for enhanced viewer experiences.
Playoff Format Changes
Expanding the playoffs would increase the number of evening games during postseason play. MLB Commissioner Rob Manfred has emphasized the importance of maximizing national revenues over local broadcasts and has hinted at bundling rights for various distribution channels.
Historical Context
Most major leagues have increased their season lengths in recent years, with MLB’s last 154-game format dating back to 1960. A move like this would be unprecedented in the current context of major leagues.
Player Reaction
While the league explores these changes, the MLB Players Association has expressed concerns regarding a salary cap and other proposals that may undermine player rights and compensation.
As negotiations progress, all proposed changes reflect an adjustment to the evolving landscape of sports media and viewer engagement, aligning financial viability with fan interests.
