WP: Nats MASN deal renegotations will have a huge impact

[nats4ever]

Still dont understand why we all care. $0 of that money will be invested in the team or the stadium.

Then why are you posting in this thread if you don't care?

[nfotiu]

It is quite possible that Angelos may want to get out of this deal too.   RSNs are a declining business.  ESPN has lost 15% of its subscribers since 2011, and I'd expect MASNs numbers to be about the same, maybe even more since they've stayed off the virtual MVPDs and lost carriage in some places. 

Based on this article, https://www.talknats.com/2016/05/07/new-masn-filing-exposes-profits-retained-orioles/ , profits were about 60 million in 2015.  A 30 million per team increase in rights wipes that to about zero.  If they are losing 2% of their subscriber base per year, revenues are probably down about 5 million/year, and they're bound to be in trouble sooner than later.

[mitlen]

I'm for anything that burns the Angelos empire to the ground.    Is that mean?

[tenken627]

The contract is forever though.  That was the condition of Washington getting the team.

I also remember that Angelos' control was for all time. His percentage of ownership was some ridiculous number in the beginning, but little by little he would cede a small percentage to the Lerners/Nats until the Nats reached 33% of ownership and then that was the maximum amount the Nats could get.

So if the Nats could not break away from MASN, I always thought the best route forward would force Angelos somehow to sell his shares of MASN to the Lerners/Nats.

Bankrupt MASN, bankrupt the Orioles, force him or get him to sell enough controlling shares to the Nats so that the Nats have control. And then decide whether you want to revive a dead, lifeless entity in MASN or just dissolve it and create your own.

[natsarl]

Could the Nats get out of MASN and have NBC Sports Washington cover them?

[GburgNatsFan]

I'm for anything that burns the Angelos empire to the ground.    Is that mean?

It's reasonable.

[dracnal]

The real sticking point for Angelos is the clause that whatever the Nats get as compensation by MASN, the Orioles must receive equal compensation.  The Nats rights are kind of pushing at the more than 50% mark for MASN, so the Orioles will force Angelos to operate at a loss. That can only go on for so long before the network goes boom and the Nats TV rights are up in the air.

[Mathguy]

Mitlen - it's no different than your perspective on many topics

I'm for anything that burns the Angelos empire to the ground.    Is that mean?

[mitlen]

Why do you say that Mathguy?     

Mitlen - it's no different than your perspective on many topics

[PowerBoater69]

The real sticking point for Angelos is the clause that whatever the Nats get as compensation by MASN, the Orioles must receive equal compensation.  The Nats rights are kind of pushing at the more than 50% mark for MASN, so the Orioles will force Angelos to operate at a loss. That can only go on for so long before the network goes boom and the Nats TV rights are up in the air.

This is incorrect, the MLB panel specifically set the fees at a rate that would keep MASN solvent, although at a low profit margin. (Low being a relative term, MASN will still be making millions per year in profits, just not tens of millions.)

[nfotiu]

This is incorrect, the MLB panel specifically set the fees at a rate that would keep MASN solvent, although at a low profit margin. (Low being a relative term, MASN will still be making millions per year in profits, just not tens of millions.)

That seems like the case based on the filings of profits, etc.   Angelos pretty much loses all compensation he thought he was getting from the deal if there is little to no profit.  I know that doesn't bring a tear to anyone's eye here, and it was probably his fault for going for this complicated arrangement versus just taking a payout.

Even if there is a small profit now, I expect their revenue is decreasing at about the same rate as ESPN due to cord cutting (so about 2%/year), so they will probably be upside down soon if not already.

[dracnal]

This is incorrect, the MLB panel specifically set the fees at a rate that would keep MASN solvent, although at a low profit margin. (Low being a relative term, MASN will still be making millions per year in profits, just not tens of millions.)

Ah, interesting. Makes sense I suppose. Picking a compensation figure that destroys one of the parties in arbitration does seem a bit off.

[Slateman]

So, in other words, the Nats MASN deal re-negotiations will not have a huge impact

[nfotiu]

So, in other words, the Nats MASN deal re-negotiations will not have a huge impact

When the dust settles, the Nats will be getting 60-70 million a year for a while, which I think is well inside the top third of the league, so it should cement ourselves as a team that spends near the luxury tax.   Really, that's a pretty solid spot to be if we spend the money wisely.

Also, 60-70/million a year is a ridiculous amount of money for a team that averages 70,000 viewers per game, and it will all blow up in a few years when the cable bundle blows up.

[Slateman]

When the dust settles, the Nats will be getting 60-70 million a year for a while, which I think is well inside the top third of the league, so it should cement ourselves as a team that spends near the luxury tax.   Really, that's a pretty solid spot to be if we spend the money wisely.

Also, 60-70/million a year is a ridiculous amount of money for a team that averages 70,000 viewers per game, and it will all blow up in a few years when the cable bundle blows up.

Ownership gets that money. Not the Nats.

[nfotiu]

Ownership gets that money. Not the Nats.

Technically speaking, this is money paid to the Nats, but I'm not sure why the need for a distinction.

[Slateman]

Technically speaking, this is money paid to the Nats, but I'm not sure why the need for a distinction.

Because the money isn't going to be spent on the Nationals. The money is going to end up in the Lerners' pockets.

[nfotiu]

Because the money isn't going to be spent on the Nationals. The money is going to end up in the Lerners' pockets.

Considering the market size, tv money, attendance, the Lerners seem to be spending a pretty respectable amount of money on payroll.   The payroll anticipated getting about this amount.   If the MASN suits had gone badly for us, I would guess they'd have cut payroll.   If this ever does get resolved, I'd guess the infamous deferred money would not be a thing any more.

[machpost]

Could the Nats get out of MASN and have NBC Sports Washington cover them?

It's been suggested that if the Angelos family were to put the Orioles up to sale, it could be in their best interest to decouple the broadcast rights of the two teams.

[Slateman]

Considering the market size, tv money, attendance, the Lerners seem to be spending a pretty respectable amount of money on payroll.   The payroll anticipated getting about this amount.   If the MASN suits had gone badly for us, I would guess they'd have cut payroll.   If this ever does get resolved, I'd guess the infamous deferred money would not be a thing any more.

Dont disagree,  but they've been rewarded with bumbkiss. They're now faced with a significant decrease in attendance revenues. This money is going to be used to cover that, as well as future decreases due to lack of competitiveness due to player loss (Rendon, Turner, Soto)

[nfotiu]

It's been suggested that if the Angelos family were to put the Orioles up to sale, it could be in their best interest to decouple the broadcast rights of the two teams.

NBC would probably not even give the Nats half as much as they are getting from MASN.   Orioles would be in risk of losing all their MASN carriage agreements if they were going to keep MASN alive alone.   I think going to 50/50 equity on MASN with a set, agreed upon rights fee for each team would be the logical course.  Otherwise both teams are risking giving up 40-50 million/year each.

[Mathguy]

2IPAs is rolling in laughter over Bo's consistent use of the matching bow tie, rose, and pocket snot rag

[nats4ever]

Where are we this? Are the Nats in favor of winning this?

[DCFan]

Where are we this? Are the Nats in favor of winning this?

The Lerners won but Angelos keeps appealing. But either way it won't change the Nats fan experience. The Nats already have the 5th highest payroll and I seriously doubt whether that will go up if and when Angelos finally pays up. It's just more money for the Lerners so this is all a big yawn for me since my last name isn't Lerner. 

[DCFan]

No updates from PB on the latest judicial decision today?