DirecTV Signs $700 Million Deal with Major League Baseball

Major League Baseball announced on Thursday that it has reached a deal with satellite television provider DirecTV Group Inc. to air its "Extra Innings" package for the next seven years.

The deal is worth $700 million.

DirecTV and Major League Baseball also announced that DirecTV will distribute a new TV network that MLB plans to start in 2009.

MLB fans had previously watched the Extra Innings package on either DirecTV, EchoStar Communications Corp.'s Dish Network, or on local cable services.

MLB was expected to sign an exclusive rights deal with DirecTV. MLB, however, says that there is a provision that other services such as cable and Dish Network can offer the service is those providers agree to match the terms that DirecTV agreed to.

"In response to those concerns of our fans, baseball has negotiated with DirecTV to offer the package to the incumbents," said Bob DuPuy, Major League Baseball's chief operating officer, "I hope that those fans who have been directing their concerns to us over the last several weeks will now encourage their cable carriers to in fact enlist for this package."

If they do not match the terms DirecTV agreed to, the Extra Innings package will be exclusive to DirecTV according to MLB. According to Analysts the deal probably priced competitors out of the market for the "Extra Innings" package, a fact that has drawn scrutiny.

The Federal Communications Commission has been investigating the negotiations between MLB and DirecTV and has drawn the attention of Senator John Kerry.

"I certainly would hope it would alleviate the concerns," said DuPuy.

Robert Jacobson, the president DirecTV competitor iN Demand, criticized MLB in a statement, stating that it had "chosen to cut a de facto exclusive deal- including conditions for carriage that MLB and DirecTV designed to be impossible for cable and Dish to meet."