As Major League Baseball and its players association near the expiration of their collective bargaining agreement, the parties must bridge differences on many issues, including a possibly expanded playoff format that would benefit ESPN Inc.
The current collective bargaining agreement ends at 11:59 p.m. ET on Dec. 1, at which point the owners are widely expected to enact a lockout of the players if a new pact is not struck.
Looking to increase its revenue base, MLB wants to boost the playoff roster from 10 to 14 teams, with a significant step-up in the Wild Card round.
Wilder Wild Card
In signing a new seven-year deal with the MLB that goes into effect in 2022, ESPN significantly reduced its regular-season game commitment, but it holds the rights to a potentially expanded Wild Card round that could feature a trio of best-of-three matchups in both the American and National Leagues.
Under the 10-team playoff format, there have been two Wild Card entrants in each league, pitted in a win-or-go home matchup, with ESPN (US) and Warner Media LLC's TBS (US) presenting one game apiece.
During the pandemic-shortened 2020 campaign, which saw the regular season reduced to 60 contests from a 162-game slate, MLB used an expanded 16-team, postseason format. ESPN aired seven of the eight best-of-three Wild Card rounds, with TBS carrying the other. Prior to MLB Commissioner Rob Manfred instituting the shortened regular campaign and revised playoff structure amid the pandemic, the MLB had proposed a 14-team playoff format.
Regular-season revision
When the 2022 season begins, the MLB's national broadcast lineup will be different. Through its new pact, TBS, which has been airing nonexclusive Sunday afternoon contests in the back half of the schedule, will now have a weekly Tuesday night window and pre-game show, plus expanded digital rights.
ESPN will continue to present 25 exclusive "Sunday Night Baseball" telecasts, plus a handful of games with playoff implications in September 2022. The network can also simulcast all of them on streaming service ESPN+. However, it will no longer present nonexclusive games on Monday and Wednesday nights. The MLB is expected to try and reach new deals with digital players for those contests.
For its part, FOX Sports will continue to air regular-season contests on FOX (US) and FOX Sports 1 (US). As had been the case under the contracts that expired with the 2021 season, FOX Sports and TBS will alternate coverage of the Division and Championship Series via their contracts that now extend from 2022-28. FOX holds exclusive World Series rights.
Financial differences
The larger playoff push aside, there are a number of key financial issues the parties are addressing: the age and service-terms for free agency and salary arbitration; higher minimum salaries; the level of the competitive balance tax, or luxury tax, teams have to pay above certain collective team salary thresholds; and a revision of the draft system, which discourages teams from missing the playoffs to obtain the highest possible player selection position.
On the field, the parties could also align on the use of the designated hitter in the National League. Introduced by the American League in the 1973 season to enhance offense and run production, the designated hitter — or its equivalent — is now deployed throughout organized baseball and softball in the U.S., save for MLB's senior circuit. There are also calls for the institution of a pitch clock to speed up the pace of play.
Lockout implications
Should a lockout ensue, it would mark the first work stoppage in the sport since the 1994-95 players' strike. The parties do have the luxury of time since the 2022 regular season begins March 31, 2022, with all 30 clubs on the field.
However, a protracted impasse would not only curtail roster constructions, but it would also likely put a damper on ticket sales.
Last season, as the pandemic limited stadium capacities until June, the MLB drew 45.3 million fans, down from 68.5 million in 2019. The MLB derives about 40% of its revenue from ticket sales and gate-related income.
