Major League Baseball (MLB) and ESPN have officially decided to part ways after the 2025 season, mutually opting out of their existing broadcast agreement.

The current seven-year deal, valued at $550 million annually, was initially set to run through 2028 but will now conclude earlier than planned, paving the way for MLB to seek new broadcast and streaming partnerships, Reuters reported.

The decision, confirmed through a memo by MLB Commissioner Rob Manfred and a statement from the league, highlights growing tensions between the two entities. ESPN reportedly approached MLB with a request to reduce rights fees for the remainder of the term, prompting MLB to decline the renegotiation and instead end the agreement.

“Unfortunately, in recent years, we have seen ESPN scale back their baseball coverage and investment in a way that is not consistent with the sport’s appeal or performance on their platform,” MLB stated. “Given that MLB provides strong viewership, valuable demographics, and exclusive rights to events like the Home Run Derby, ESPN’s demand to reduce rights fees is simply unacceptable.”