DirecTV and Major League Baseball announced a $700 million deal yesterday for carriage of the MLB Extra Innings game package. While it isn’t quite the exclusive deal that had been rumored, it appears MLB will use the arrangement to press cable companies and other providers for a sweeter deal. And if they don’t get it, the PPV package will be exclusive to the satellite company.

MLB said other providers can continue to sell the games, but only if they “agree to carriage rights to the MLB Channel proportionally equivalent to DirecTV’s commitment.” As part of the Extra Innings agreement, DirecTV took a minority ownership stake in the MLB Channel, which will launch in 2009, and agreed to carry the network on its basic tier. Cable companies would have to agree to basic carriage to get Extra Innings. Said MLB and DirecTV in a joint agreement: “Should the incumbents decide not to match DirecTV’s commitment, the MLB Extra Innings package will be exclusive to DirecTV.” MLB said such deals must be finalized by the end of March. At Cox, we continue to negotiate for Extra Innings with our customers’ best interests in mind and are working to reach a fair deal.

Senator John Kerry (D-MA), who had opposed an exlcusive deal, said in a statement, "I will review this deal to ensure that it benefits consumers. I'm encouraged that Major League Baseball may be willing to provide broader access to their games than what was initially proposed. I will be watching clsoely to ensure that the league works in good faith so that America's pastime is available to all fans. My concern all along has been that fans continue to have the ability to enjoy baseball on television."