Author Topic: WP: Nats MASN deal renegotations will have a huge impact  (Read 212211 times)

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Offline PowerBoater69

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Wrote this up as a blog entry for TalkNats, but they already had a full slate of posts queued up for this weekend so I'm putting this here. Nothing huge, just an update based on the latest cross motions filed by MASN.
http://www.talknats.com/category/masn/


Lots of cross motions being filed between MASN, MLB, and the Nationals over the past few weeks. An already bitter fight between the Lerners and Angelos now has MASN repeatedly attacking MLB and Commissioner Manfred in new filings posted Friday night.

With MASN having won a reversal of Arb round 1 they are now fighting to get the venue changed for Arb 2, which would be a break from the terms of the original contract, and something that the judge has already declared is outside of his authority. With no valid legal arguments remaining that the judge has not already thrown out MASN has resorted to trashing MLB, then claiming bias when MLB responds.

MASN's latest motion of bias by MLB is based primarily on several comments made by Manfred that the Nationals will eventually be awarded the money as determined by Arb 1; plus the fact that the Nats filed a motion supporting the Arb 2 hearings in August just hours after MLB announced that schedule. MASN is shocked and appalled that MLB would collude with one of it's member clubs. Which is all of course a false front considering that the original panel gave the Nats much less than what they had requested and expressly stated that they would not bankrupt MASN, meaning that MLB was effectively colluding with Angelos up to the point where he sued them.

Arguing in support of MASN's motions is the Bortz group, which is the company that created the "Bortz method" for determining rights fees and profit margins as referenced in the original contract. Bortz argues that the Arb 1 panel made an error in their initial determination of fees based on the profit margin being set at 5% rather than 20% as recommended by their methodology. But as the Arb 1 panel determined, if the standard was to be set at 20% that would have been explicitly stated in the contract. An interesting note on the Bortz affidavit is that Bortz makes their money by helping teams maximize their broadcast rights profits, the Os are their client so this was paid testimony, but meanwhile MLB is also their client as listed on their web site. Another conflict of interest?

MASN makes the argument that the Arb 2 panel should not begin until all appeals are finished for Arb 1, that the Nats are trying to get "two bites" out of the apple, meaning that if the Nats get more money out of Arb 2 they will drop their appeal for Arb 1 and vice versa. MASN further argues that there is no expediency gained in starting Arb 2 until the Arb 1 appeal is complete because the judge will still need to rule on Arb 1 before any payments are made. Which is false timing, waiting for the resolution of the appeals before starting Arb 2 creates further delays while having Arb 2 done before the judge's ruling would be the faster path for the Nationals to receive their money.

MASN states that they will appeal the results of all decisions, meaning that there is no reason for anyone to expedite any process. MASN also objects to being given "only" six weeks to prepare for Arb 2, as though the case has somehow dramatically changed since Arb 1.

I'm really ready to hear from the judge on this, having read all of the motions from both sides it is hard to be sure which arguments hold weight. Based on Judge Mark's previous decision though it seems like the Nats are in a very good position to move forward with Arb 2 and have that ratified since they have complied with the single directive to hire new representation. This time around the judge needs to shut emphatically shut the door on all of these delays and appeals.

The stunning thing about this case is the level of anger in now public attacks between MLB and the Orioles. Manfred's hands are tied from taking any action while the case is in process, but once it is done it will be interesting to see if there is any punitive action taken against Angelos. Selig strongly warned both teams against going public with this dispute and the Os have called his bluff.