ESPN and Major League Baseball are close to a three-year media pact worth about $1.65 billion, or roughly $550 million a year, according to people familiar with the negotiations. The framework would give the Disney-owned network exclusive authority to sell all out-of-market regular-season games digitally and distribute local broadcasts for five league-controlled clubs, beginning with the 2026 season. Under the proposed terms, MLB would fold its MLB.TV package into ESPN’s new direct-to-consumer service, which launched this week at $29.99 a month. Subscribers would gain one-stop access to the sport’s out-of-market schedule, while fans of the Cleveland Guardians, San Diego Padres, Minnesota Twins, Arizona Diamondbacks and Colorado Rockies could also stream their local games through the platform for an additional fee. ESPN would still televise roughly 30 exclusive national games each year but would shift its showcase telecast from Sunday night to a mid-week slot. The network would relinquish rights to the Home Run Derby, and MLB is talking with other outlets—including Netflix, NBC and Apple—about those events and early-round playoff contests. The pending deal marks a strategic reversal for both sides after ESPN exited a more expensive rights package earlier this year. For MLB, the arrangement expands distribution at a time when regional sports networks are faltering; for ESPN, it bolsters a streaming push that now spans the NFL, WWE and, pending regulatory approval, other sports properties. Final contracts are expected to be signed in September.