Author Topic: WP: Nats MASN deal renegotations will have a huge impact  (Read 111386 times)

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Offline tomterp

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  • Hell yes!
The deal says the Nats have to be paid fair market value.  The ability of MASN to pay it has nothing to do with it.  If the arbitration panel rules the fair market value is $100 million, then that's what has to be paid.  The decision can not be based on other factors.  If it is, the Lerners will sue and win big.

If MASN is already extracting maximum $ from the markets, then fair market value is going to be some portion of that pie.  It's just like if you are looking to buy a building that already is under lease for the next 10 years, you are acquiring the lease stream as opposed to some esoteric appraiser's estimate of what the building ought to be worth.  The income stream determines the value.