WP: Nats MASN deal renegotations will have a huge impact

[Dave in Fairfax]

It seems like Tom Davis is still around because he brings along his own sponsors, not just Royal Farms but other local Maryland businesses like Pete's Cycle.  Yet still, as noted above, they've slashed his budget. The few shows of his I've caught recently have all been from that park bench in the Inner Harbor or a park bench in spring training.

The Nats and Os pregame shows would probably have been cut back even further if they didn't turn over a chunk of it to that gambling sponsor.

Though it's not just RSNs. MLB Network is also full of gambling hype these days.

[imref]

he's retired now AFAIK.

Update: Wood retired from broadcasting after the 2019 WS, he's teaching part-time at Austin Peay University.

[Senatorswin]

Does anybody know what the next step is in this MASN process? Is there a court date scheduled? It's an embarrassment to the U.S. court system this is allowed to go on so long.

[rileyn]

It seems to me they are waiting for Angelos to expire.  Cowardly approach.

[PowerBoater69]

It seems to me they are waiting for Angelos to expire.  Cowardly approach.

Nothing that MLB or the Nats can do while the case is tied up in court, their hands are tied and the judges up in NY seem to take 6 to 12 months just to wipe their asses.

[welch]

Nothing that MLB or the Nats can do while the case is tied up in court, their hands are tied and the judges up in NY seem to take 6 to 12 months just to wipe their asses.

How can I find when this is to be heard next? Probably takes only an hour to meet and postpone until next time, but the court houses are a simple subway ride away.

[PowerBoater69]

How can I find when this is to be heard next? Probably takes only an hour to meet and postpone until next time, but the court houses are a simple subway ride away.

As I recall, most of the recent rulings are done based on filings, not testimony in court.

[Elvir Ovcina]

How can I find when this is to be heard next? Probably takes only an hour to meet and postpone until next time, but the court houses are a simple subway ride away.

The docket is public, but you'd need to know the case name (or even better, the file number; it'll be a format like 08-cv-5555) and sign up for a PACER account.

As I recall, most of the recent rulings are done based on filings, not testimony in court.

True, but they'll likely still have occasional status conferences.

[nfotiu]

There were articles somewhere along the line that angelos made a settlement offer that paid the teams an average of 100 million/ year over 20 years.  I think it started low and then escalated.   The nats should have really accepted that and moved on.   I can’t imagine that is on the table now that they are losing subscribers but everyone should have seen that coming at the time anyway instead of having this illusion that RSNs could keep growing their revenue in perpetuity.

[DPMOmaha]

There were articles somewhere along the line that angelos made a settlement offer that paid the teams an average of 100 million/ year over 20 years.  I think it started low and then escalated.   The nats should have really accepted that and moved on.   I can’t imagine that is on the table now that they are losing subscribers but everyone should have seen that coming at the time anyway instead of having this illusion that RSNs could keep growing their revenue in perpetuity.

Eh, I think the want to be untethered from MASN ASAP. The fastest way in their mind probably is to fight it to the bitter end. I don't think they have any illusion they'll get the money in the end, but the longer they're tied to MASN, the more money they're not generating from their own RSN deal. And RSN's will still be a thing, the model will evolve considerably over the next few years, I think, but they're still going to have a way to broadcast the games in the local markets.

[dracnal]

Eh, I think the want to be untethered from MASN ASAP. The fastest way in their mind probably is to fight it to the bitter end. I don't think they have any illusion they'll get the money in the end, but the longer they're tied to MASN, the more money they're not generating from their own RSN deal. And RSN's will still be a thing, the model will evolve considerably over the next few years, I think, but they're still going to have a way to broadcast the games in the local markets.

I would guess it's more a question of the plans to sell the team. If you aren't part of the team's future, you don't really care if what you sue MASN for drives the company into the ground, as long as you get paid. Without the team, they won't need the revenue it will bring and can just focus on treating the money owed as some sort of generational blood debt that they'll be after until they get theirs.

[HalfSmokes]

Eh, I think the want to be untethered from MASN ASAP. The fastest way in their mind probably is to fight it to the bitter end. I don't think they have any illusion they'll get the money in the end, but the longer they're tied to MASN, the more money they're not generating from their own RSN deal. And RSN's will still be a thing, the model will evolve considerably over the next few years, I think, but they're still going to have a way to broadcast the games in the local markets.

MASN owns their broadcast rights. Even if MASN went under, that would just be an asset in bankruptcy to auction off. I wonder if they're just hoping for the death of RSNs and the move to digital

[nfotiu]

I would guess it's more a question of the plans to sell the team. If you aren't part of the team's future, you don't really care if what you sue MASN for drives the company into the ground, as long as you get paid. Without the team, they won't need the revenue it will bring and can just focus on treating the money owed as some sort of generational blood debt that they'll be after until they get theirs.

The money would be owed to the Nats, not the Lerners, right?   There was a report of 100 million being in escrow and I imagine the 2012-2017 award will be in that ballpark.

I think the reason it wasn't more is because MASN profit sharing and MLB was floating Nats some money during that period.   The 2017-2022 period would probably be a larger amount since those things have stopped along the way, I believe.

I don't see how they can possibly sell the team without trying to settle this case.

[nfotiu]

MASN owns their broadcast rights. Even if MASN went under, that would just be an asset in bankruptcy to auction off. I wonder if they're just hoping for the death of RSNs and the move to digital

MASN would only go under if there was a big settlement against them that they actually had to pay.   They can continue this model of bringing in 200+ million per year in carriage fees and paying out the teams about a third of that for at least a decade.

[UMDNats]

I mean when Leonsis buys the team we'll just fold into the Monumental Network. We're actually probably ahead of the game in that regards since Ted has focused on making Monumental a thing and NBCSW will easily transition into it.

[dracnal]

The money would be owed to the Nats, not the Lerners, right?   There was a report of 100 million being in escrow and I imagine the 2012-2017 award will be in that ballpark.

I think the reason it wasn't more is because MASN profit sharing and MLB was floating Nats some money during that period.   The 2017-2022 period would probably be a larger amount since those things have stopped along the way, I believe.

I don't see how they can possibly sell the team without trying to settle this case.

Hmm, you're probably right. Finance is definitely not my area of expertise. I can't imagine the Lerner family decided to just forget that money and won't have some sort of claim to it if it gets paid post-sale, though. Something like the financed the operating costs that should have been covered by the TV money on the understanding the team would pay them back when the money came in. But again, finance isn't my thing, so I don't know the legality of contracts like that, if it's possible, etc.

[HalfSmokes]

I mean when Leonsis buys the team we'll just fold into the Monumental Network. We're actually probably ahead of the game in that regards since Ted has focused on making Monumental a thing and NBCSW will easily transition into it.

He'd need to buy the rights from Angelos to do that

[nfotiu]

Hmm, you're probably right. Finance is definitely not my area of expertise. I can't imagine the Lerner family decided to just forget that money and won't have some sort of claim to it if it gets paid post-sale, though. Something like the financed the operating costs that should have been covered by the TV money on the understanding the team would pay them back when the money came in. But again, finance isn't my thing, so I don't know the legality of contracts like that, if it's possible, etc.

It just doesn't seem possible to sell a team for $600m-$1b without resolving several hundred million in past a future earnings that are all completely in limbo.  I suppose a guy like Bezos is rich enough to not care about a few hundred million if he's really motivated to own a baseball team.

[Natsinpwc]

It just doesn't seem possible to sell a team for $600m-$1b without resolving several hundred million in past a future earnings that are all completely in limbo.  I suppose a guy like Bezos is rich enough to not care about a few hundred million if he's really motivated to own a baseball team.

Is there any reason to think Bezos really wants a sports team? Warren Buffet never wanted one although he surely had the money. The Koch brothers didn’t want one. Looks like Elon Musk did not want one. I can sort of picture him at owners meetings looking around and thinking why am I hanging out with these paupers.

[DPMOmaha]

Warren Buffet owned a majority stake in the Omaha Royals for a long time, fwiw. Obviously not a MLB team, but if Omaha had a pro team, I wouldn't be surprised if he'd been involved.

[Dave in Fairfax]

It seems like Tom Davis is still around because he brings along his own sponsors, not just Royal Farms but other local Maryland businesses like Pete's Cycle.  Yet still, as noted above, they've slashed his budget. The few shows of his I've caught recently have all been from that park bench in the Inner Harbor or a park bench in spring training.

... or a park bench in a random park, where he's currently interviewing Mike Bordick. Bordick was another MASN commentator dropped in 2021.

[imref]

the push is on to settle before the Nats sell:

https://www.washingtonpost.com/sports/2022/06/06/nationals-sale-masn-orioles/

[Smithian]

the push is on to settle before the Nats sell:

https://www.washingtonpost.com/sports/2022/06/06/nationals-sale-masn-orioles/

They won't

[HalfSmokes]

Are the Nats really worth $2 billion with the MASN deal? That seems optimistic to put it mildly

[Smithian]

Are the Nats really worth $2 billion with the MASN deal? That seems optimistic to put it mildly

I'm convinced the price is for the stadium chocked full of luxury seating in a wealthy area. And no name on the stadium is another unexplored revenue enhancer.

I don't think the market numbers make a massive TV deal possible, but there has to be upside moving to anything-but-MASN