Major League Baseball on television in the 1990s
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On December 14, 1988, CBS (under the guidance of Commissioner Peter Ueberroth) paid approximately $1.8 billion for exclusive television rights for over four years (beginning in 1990). CBS paid about $265 million each year for the World Series, League Championship Series, All-Star Game, and the Saturday Game of the Week. It was one of the largest agreements (to date) between the sport of baseball and the business of broadcasting.
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On January 5, 1989, Major League Baseball signed a $400 million deal with ESPN, who would show over 175 games beginning in 1990. For the next four years, ESPN would televise six games a week (Sunday, Wednesday Night Baseball, doubleheaders on Tuesdays and Fridays, plus holidays).
The deal with CBS was also supposed to pay each team $10 million a year. A separate deal with cable TV would bring each team an additional $4 million. Each team could also cut its own deal with local TV. For example, the New York Yankees signed with a cable network (MSG) that would pay the team $41 million annually for 12 years. Radio broadcast rights can bring in additional money. Reportedly, after the huge TV contracts with CBS and ESPN were signed, ballclubs spent their excess millions on free agents.
In the end, CBS wound up losing approximately half a billion dollars from their television contract with Major League Baseball. CBS repeatedly asked Major League Baseball for a rebate, but MLB wasn't willing to do this.