WP: Nats MASN deal renegotations will have a huge impact

[Senatorswin]

I was listening to 105.7 out of Baltimore yesterday and they mentioned the Orioles are actively trying to end the MASN dispute now which hasn't been the case in the past.

[PowerBoater69]

I was listening to 105.7 out of Baltimore yesterday and they mentioned the Orioles are actively trying to end the MASN dispute now which hasn't been the case in the past.

They have been for a while. They offered the Lerners an accelerated pace of transferring ownership equity to the Nats but were turned down. It appears that the Nats are on the offensive and not willing to settle.

[NJ Ave]

They have been for a while. They offered the Lerners an accelerated pace of transferring ownership equity to the Nats but were turned down. It appears that the Nats are on the offensive and not willing to settle.

Has Baltimore just been paying the base? How much is Baltimore going to be on the hook for when this finally settles? Almost a decade of recalculated fees?

[PowerBoater69]

Has Baltimore just been paying the base? How much is Baltimore going to be on the hook for when this finally settles? Almost a decade of recalculated fees?

There was a 15-20 million difference in the fees paid and what was ordered. But MLB takes a third of the fees, the Nats were receiving ownership equity (a small amount) on the previous fees and the equity will be lowered once the fees increase. The Nats also got a $25 million load from MLB. So by the time all that is factored in it won't be a huge windfall. But the big difference will be that future payments will rise.

[dracnal]

There was a 15-20 million difference in the fees paid and what was ordered. But MLB takes a third of the fees, the Nats were receiving ownership equity (a small amount) on the previous fees and the equity will be lowered once the fees increase. The Nats also got a $25 million load from MLB. So by the time all that is factored in it won't be a huge windfall. But the big difference will be that future payments will rise.

Don't forget the other part of the rising fees - Baltimore gets an increase in revenue from MASN directly equal to what the Nats get. Decent chance at some point that bankrupts MASN from what I remember from 6ish years ago.

[Nick the Pig]

They have been for a while. They offered the Lerners an accelerated pace of transferring ownership equity to the Nats but were turned down. It appears that the Nats are on the offensive and not willing to settle.

Good !

MASN need to die a gruesome horrible death...

[MarquisDeSade]

Honestly, MLB is waiting for Angelos to die.  Then they will negotiate MASN off his sons as a condition of them continuing to own the Orioles.

Good luck on that.

Don't forget the other part of the rising fees - Baltimore gets an increase in revenue from MASN directly equal to what the Nats get. Decent chance at some point that bankrupts MASN from what I remember from 6ish years ago.

Even if it bankrupts them (which it sounds like was the intention from the beginning of this boondoggle) where does that leave either team?  The RSN bubble is popped and there's zero chance any team gets another insane 10 figure teevee deal again. 

[Nick the Pig]

Good luck on that.

No argument here.

His otherwise useless sons will keep him on life support forever...

[wj73]

The regional sports network owned by the Baltimore Orioles has stopped payouts to the Washington Nationals. The Orioles are now taking the position that MLB has an ownership or financial interest in its rival.

 


https://www.hollywoodreporter.com/thr-esq/two-major-league-baseball-teams-back-court-tv-money-1200294

[mitlen]

https://www.hollywoodreporter.com/thr-esq/two-major-league-baseball-teams-back-court-tv-money-1200294

Maybe we can write children's books for spare funds.   

[imref]

https://www.hollywoodreporter.com/thr-esq/two-major-league-baseball-teams-back-court-tv-money-1200294

this is just crazy

[PowerBoater69]

Hopefully we'll see the text today. The $25 million has already been raised as an issue in the first case so I don't see how Angelos has any grounds to withhold payment after the courts sent the dispute back to MLB arbitration. I'm surprised that Lerner waited a year to sue, probably trying to stay in good with the other MLB ownership groups.

The Nats tried to break off from MASN when Angelos refused to honor the terms of the first arbitration, but at least at that time MASN was still paying fees under the original rate structure. The judge blocked the Nats from taking any action while that case was open, but this is different, complete non payment has to be cause to break the deal.

On the bright side, the Nats appear to be thriving financially and the Os are in a state of collapse.

[HalfSmokes]

I’d like the see the nats just bar masn employees from the park if they aren’t getting anything

[nfotiu]

Hopefully we'll see the text today. The $25 million has already been raised as an issue in the first case so I don't see how Angelos has any grounds to withhold payment after the courts sent the dispute back to MLB arbitration. I'm surprised that Lerner waited a year to sue, probably trying to stay in good with the other MLB ownership groups.

The Nats tried to break off from MASN when Angelos refused to honor the terms of the first arbitration, but at least at that time MASN was still paying fees under the original rate structure. The judge blocked the Nats from taking any action while that case was open, but this is different, complete non payment has to be cause to break the deal.

On the bright side, the Nats appear to be thriving financially and the Os are in a state of collapse.

I wonder what the Nats could get for their TV rights these days if they were suddenly left without a TV deal?  NBC sports net would most likely be the only bidder.  They would likely not be able to get more than the 40 million+ownership stake that the Orioles are saying they should get.   

[PowerBoater69]

I wonder what the Nats could get for their TV rights these days if they were suddenly left without a TV deal?  NBC sports net would most likely be the only bidder.  They would likely not be able to get more than the 40 million+ownership stake that the Orioles are saying they should get.   

They'd get a heck of a lot more than that. This is a major media market. The question is how much would it cost to buy out the rights. Might be more than the $450 million they paid for the team in 2006.

[Slateman]

lol, can I just not pay my debts?

Like hey, Cox, I've decided that I'm just not going to pay.

[comish4lif]

https://www.hollywoodreporter.com/thr-esq/two-major-league-baseball-teams-back-court-tv-money-1200294

Stopping payments has to represent a breach of contract - how soon until the Nats can just go off and sell their tv rights on their own?

[Bookman]

I don't know anything about broadcast rights, earnings, market etc, I just wish MASN would hire new game announcers.

[nfotiu]

They'd get a heck of a lot more than that. This is a major media market. The question is how much would it cost to buy out the rights. Might be more than the $450 million they paid for the team in 2006.

I don't think they would.  3-4 years ago they would have.   Fox Sports is out of the game, so there is no one to bid against NBC.  They average 70,000 viewers per game, so ad revenue wouldn't even pay production costs.  It's all about how much more they can get in carriage costs for their channel.  I don't think adding the Nats gives them that much more leverage, and all the carriers are fighting pretty hard against carriage fee increases these days.    Not to mention that Comcast is one of the bigger carriers in the market, and they are essentially paying themselves. 

I don't see how NBC/Comcast would think that they could make much money off of the Nats rights.   And the market certainly isn't suitable for trying to launch a standalone Nats channel.  I think the most likely scenario of the Nats terminating their MASN contract would be no TV for a couple years when they realize they don't like their options.

[GburgNatsFan]

lol, can I just not pay my debts?

Like hey, Cox, I've decided that I'm just not going to pay.

They had less than 7K in attendance Monday. They're freaked.

[UMDNats]

I want a new cable deal so we can get a TV broadcast that has updated its graphics from 2009.

[HalfSmokes]

I just want them to stream in market like every other team in baseball

[nfotiu]

I just want them to stream in market like every other team in baseball

Yep...

[PowerBoater69]

I don't know anything about broadcast rights, earnings, market etc, I just wish MASN would hire new game announcers.

That is completely under the control of the Nats.

[PowerBoater69]

@eriqgardner
After my story came out, the Nationals decided to seal the court documents. The team can't do anything about a reporter who has already downloaded them. Here's the team's memorandum in support of an injunction. https://t.co/Vdekz6haHP
https://t.co/3Axks4S1rK