Author Topic: WP: Nats MASN deal renegotations will have a huge impact  (Read 103215 times)

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Online PowerBoater69

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http://www.sportsbusinessdaily.com/Journal/Issues/2012/06/11/Media/MASN-Nationals.aspx

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But sources say the league has a concern that any decision will lead to a lawsuit from one side or the other.
No crap Selig, should have thought of that before handing the broadcast rights over to Angelos back in 2004.

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Plus, other MLB teams are watching the dispute closely, fearful that a ruling in favor of MASN could set a new lower bar for local TV rights. In the past few years, the market for local baseball rights has been scalding hot, punctuated by deals like the Texas Rangers’ 20-year, $3 billion pact with Fox Sports Net and the San Diego Padres’ 20-year $1.2 billion deal, also with FSN.
This is the best thing we have going for us, the rest of the league has an interest in seeing the Nats get a big deal in order to keep the market moving up.

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The Nationals have told MLB that they should receive an average of more than $100 million a year in media rights, a fee that would put the team on par with other teams in the top-10 media markets.
Anything less than top 10 would be a major set back for the Nats.

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MASN said the fee should average about $35 million a year, citing the team’s low TV ratings and tepid fan base.
This is where going cheap for the first five years is coming back to bite the old man.  With no measurable ratings for several years there is no way that the Lerners can guarantee that the recent improvements will be sustained over the next few years.

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MASN’s offer represents a 20 percent increase over the $29 million a year it now pays the Nationals.
20%, Jesus Christ, Lerner must want to take off his shoe and beat Angelos into a bloody mess over that offer.

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Complicating matters is a parity clause in MASN’s contract requiring that the Orioles receive exactly as much in rights fees as the Nationals. That means if the Nationals wind up with a new deal worth $100 million a year, the Orioles also would get $100 million a year.  Cable industry sources have questioned whether MASN could afford both contracts, given the long-term carriage deals they already have signed with cable and satellite operators.
As has been posted already, the viability of MASN should be completely irrelevant to the Nats deal.  If MASN can't cover the contract they can sell the rights to a company that can.

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MASN gets about $2.14 a subscriber per month, according to figures from SNL Kagan. That’s higher than only a handful of RSNs.
Holy God that is a pile of cash.  How many cable subscribers live in Maryland, Virginia, and DC?  Millions and millions coming in every month.

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MLB created an ad hoc committee of owners from the New York Mets, Pittsburgh Pirates and Tampa Bay Rays to come to a decision. Rob Manfred, MLB executive vice president for labor relations and human resources, is leading the committee.
They really need a completely independent arbitrator.  Beyond the fact that the losing side will sue, the loser is bound to hold a lifelong grudge against the owners who sided against them.  So the Mets, Pirates, and Rays owners are faced with making an enemy out of one of the small number of member clubs no matter how they decide on this issue.  And a compromise will likely as not end up leaving the deciding clubs with two teams that will not be inclined to back them on future moves.