WP: Nats MASN deal renegotations will have a huge impact

[IanRubbish]

Why do we pay into revenue sharing if we don’t get the full profits from our market?

High stadium revenue.  Avg cost per ticket and concessions is well above league average.

[welch]

Lerners have a $2 billion offer from Ted L.

Ted Leonsis, owner of three Washington-based professional sports franchises, offered more than $2 billion to buy the Washington Nationals from the Lerner family late last year, according to three people with knowledge of the situation. It’s not clear whether the Lerners rejected the offer or simply did not respond to it, though one person with direct knowledge of the process says the two parties have remained in touch.

The Lerners announced their intention to explore a sale of the MLB team a year ago, but with a new season underway in the wake of the February death of family patriarch Ted Lerner at age 97, their intentions remain unclear. After at least five potential bidders met with Nationals officials last year, Leonsis — who owns the NBA’s Washington Wizards, the NHL’s Capitals and the WNBA’s Mystics as part of his Monumental Sports empire — emerged as the front-runner. His formal offer has not been previously reported.

Leonsis declined to comment. The Lerners declined to comment. The family has said they are planning to operate the team indefinitely in the absence of a sale.

Entering this season, Forbes estimated the Nationals’ value at $2 billion, 16th-highest among the 30 MLB teams. People familiar with the Lerner family’s thinking long have said they hoped to sell the team for something similar to the $2.4 billion Steve Cohen paid for the New York Mets in 2019, the last time an MLB team was sold.

https://www.washingtonpost.com/sports/2023/04/19/ted-leonsis-washington-nationals/?itid=sf_sports_top-table_p001_f003

[Senatorswin]

The thing about Leonsis is that he seems to keep the best players on the teams he owns for better or worse. He never let Ovechkin get away as well as other longtime Caps as Wilson, Oshie, Backstrom etc. Beal has been with the Wizards forever though the wisdom of that can be questioned.

The point is if Leonsis buys the Nats will we keep our best players instead of letting them get away.

[Natsinpwc]

If they have a $2 billion offer they just need to take it. No way they would get as much as a NY even if it’s a couple years later. 

I wonder if the deal is contingent upon some sort of resolution to the MASN legal issues?

[nfotiu]

If they have a $2 billion offer they just need to take it. No way they would get as much as a NY even if it’s a couple years later. 

I wonder if the deal is contingent upon some sort of resolution to the MASN legal issues?

That's my thought as well.   Running the team on a bare minimum budget for a couple of years is only going to decrease the value.   

[PowerBoater69]

If they have a $2 billion offer they just need to take it. No way they would get as much as a NY even if it’s a couple years later. 

I wonder if the deal is contingent upon some sort of resolution to the MASN legal issues?

The report from Talk Nats last year was that Leonsis offered the $2 billion but it was highly conditional based on outcome of the MASN case.

[Mattionals]

The report from Talk Nats last year was that Leonsis offered the $2 billion but it was highly conditional based on outcome of the MASN case.

As it should and I think that shift has probably been communicated to the legal council supporting the Nats in the MASN case. We've said it here before, the Nats legal council isn't demanding the owed money that MASN has failed to deliver on. My guess is that the legal council is hoping that an alternative resolution where the Nats are able to break completely from MASN and forfeit the lost funds will happen so Tanned Teddy can come in, buy the team, and stick them on his sports network.

[nfotiu]

The report from Talk Nats last year was that Leonsis offered the $2 billion but it was highly conditional based on outcome of the MASN case.

It's beyond frustrating that the Lerners and Angeloses won't settle this and would rather run each of their franchises into the ground just to spite each other.   If they're going to be the beneficiaries of public funded stadiums, then there should be an obligation to some level of competence in running their teams.

[nfotiu]

As it should and I think that shift has probably been communicated to the legal council supporting the Nats in the MASN case. We've said it here before, the Nats legal council isn't demanding the owed money that MASN has failed to deliver on. My guess is that the legal council is hoping that an alternative resolution where the Nats are able to break completely from MASN and forfeit the lost funds will happen so Tanned Teddy can come in, buy the team, and stick them on his sports network.

I'm not sure how much I buy that.   Leonsis knows the sports network business, and it's not going to be easy to significantly monetize the Nats TV rights.   There is a lot more money in past revenues owed and future MASN money from their carriage fees than there is in owning the Nats rights.    Having the Nats isn't going to significantly increase their carriage rights at a time when providers are all asking for decreases or just forgoing them, and that will only decline.   A standalone streaming network of the local DC teams can make some money, but still a fraction of what MASN would bring in.

[IanRubbish]

Manfred admits the truth about RSNs and their declining financial relevance.  Good luck generating stadium revenue in Harm City.
https://awfulannouncing.com/mlb/rob-manfred-revenues-per-subscriber-fee-quiet-part.html

[IanRubbish]

Like the Lerners, the Giants are making $ from
real estate around the ballpark.  Far more financially sustainable
than cable tv.

https://www.sfchronicle.com/realestate/article/mission-rock-tower-san-francisco-giants-17908867.php

[Senatorswin]

Like the Lerners, the Giants are making $ from
real estate around the ballpark.  Far more financially sustainable
than cable tv.

https://www.sfchronicle.com/realestate/article/mission-rock-tower-san-francisco-giants-17908867.php

Do the Lerners own some of the buildings around Nats Park?

[IanRubbish]

Do the Lerners own some of the buildings around Nats Park?

They put up one of the first buildings there, 20 M Street SE, and also own 1000 South Capitol across from the ball park.  They own a bunch of others through joint ventures. 

[Senatorswin]

They put up one of the first buildings there, 20 M Street SE, and also own 1000 South Capitol across from the ball park.  They own a bunch of others through joint ventures.

I didn't know that. Thanks.

[machpost]

I didn't know that. Thanks.

If you look up, there's a big illuminated curly W on the top of the building's facade, too. Best seen if you're coming east down M Street from the other side of South Capitol.

[Senatorswin]

If you look up, there's a big illuminated curly W on the top of the building's facade, too. Best seen if you're coming east down M Street from the other side of South Capitol.

Okay. I'll check it out. Thanks.

[IanRubbish]

I’m in downtown Phoenix right now, heading to Dbacks game in a couple hours and area around Chase is filled with fans at bars/restaurants. Don’t think the Dbacks owners own any of this real estate, but this is what the future of MLB looks like.  Wasn’t like this in Phoenix 10 years ago.

[Senatorswin]

I’m in downtown Phoenix right now, heading to Dbacks game in a couple hours and area around Chase is filled with fans at bars/restaurants. Don’t think the Dbacks owners own any of this real estate, but this is what the future of MLB looks like.  Wasn’t like this in Phoenix 10 years ago.

I used to be so jealous when going to a baseball game in Fenway because the games were an event, not just a game. People hung out at the restaurants and bars before and after games. Now it's that way in DC.

[IanRubbish]

NBA also questioning cable tv distribution.  https://awfulannouncing.com/nba/adam-silver-express-dissatisfaction.html

[RobDibblesGhost]

I'm not sure how much I buy that.   Leonsis knows the sports network business, and it's not going to be easy to significantly monetize the Nats TV rights.   There is a lot more money in past revenues owed and future MASN money from their carriage fees than there is in owning the Nats rights.    Having the Nats isn't going to significantly increase their carriage rights at a time when providers are all asking for decreases or just forgoing them, and that will only decline.   A standalone streaming network of the local DC teams can make some money, but still a fraction of what MASN would bring in.

Monumental bought NBC Sports Washington last year and I've heard a rebrand is coming soon.

What to watch: Monumental plans to reach its billion-dollar revenue goal both through organic growth and acquisitions, Leonsis said.

It was reported last year that Ted Leonsis, the founder, chairman, CEO and majority owner of Monumental, had emerged as a suitor for the Washington Nationals baseball team.
Owning the Nationals would expand Monumental's portfolio meaningfully. Monumental today can't air games for teams it doesn't own.

https://www.axios.com/2023/03/21/monumental-overhaul-dc-regional-sports-network

[PowerBoater69]

The Nats won 6-0, the Os can appeal to the SCOTUS but no chance it will be heard.

Here is a link to the text:
https://thenatsreport.com/04/25/2023/allnews/quick-notes-new-york-court-rules-in-favor-of-the-nationals-and-against-the-orioles-in-years-long-masn-financial-dispute/

My best guesses for the next steps after the Supreme Court declines the case:
1) The Os indicated that they are going to sue again, this time in Maryland, to fight to reduce the amount paid to the Nats. It's complicated because the Nats already received profit sharing for the five years in question and those profits will be reduced based on the increased fees. Also with the payments shifted from profits to fees, MLB gets a third of the rights fees, so a third of the $100 million goes to MLB.
2) The Nats will initiate the RSDC hearings for the next two five year resets. The RSN bubble had not yet burst for the second reset, so there should be even more money coming for those years. The latest reset may see a reduction in fees.
3) The injunction preventing the Nats from breaking from MASN due to breach of contract will end so the Nats will demand immediate payment and look for any chance to dissolve the partnership.

[Natsinpwc]

Is “highly sophisticated parties” code for stop wasting our time? 

Next steps?

Edit:  you beat me to that.

[Natsinpwc]

Still seems to me that if the Orioles want to sell their team they need to reach some agreement on this.

At some point would the Nats have a case to sue for damages?

[GburgNatsFan]

soph·ist·ry
noun
the use of fallacious arguments, especially with the intention of deceiving.
"trying to argue that I had benefited in any way from the disaster was pure sophistry"
a fallacious argument.
plural noun: sophistries

So yeah. Get out of our courtroom.

Is “highly sophisticated parties” code for stop wasting our time? 

Next steps?

Edit:  you beat me to that.

[nfotiu]

The Nats won 6-0, the Os can appeal to the SCOTUS but no chance it will be heard.

Here is a link to the text:
https://thenatsreport.com/04/25/2023/allnews/quick-notes-new-york-court-rules-in-favor-of-the-nationals-and-against-the-orioles-in-years-long-masn-financial-dispute/

My best guesses for the next steps after the Supreme Court declines the case:
1) The Os indicated that they are going to sue again, this time in Maryland, to fight to reduce the amount paid to the Nats. It's complicated because the Nats already received profit sharing for the five years in question and those profits will be reduced based on the increased fees. Also with the payments shifted from profits to fees, MLB gets a third of the rights fees, so a third of the $100 million goes to MLB.
2) The Nats will initiate the RSDC hearings for the next two five year resets. The RSN bubble had not yet burst for the second reset, so there should be even more money coming for those years. The latest reset may see a reduction in fees.
3) The injunction preventing the Nats from breaking from MASN due to breach of contract will end so the Nats will demand immediate payment and look for any chance to dissolve the partnership.

Thanks for posting.

I guess there is still dispute over interest and penalties that needs to be litigated.   

Now that our courts have confirmed the RSDC’s determination of
the fair market value of the telecast rights, the parties must resolve any disputes over
nonpayment of those fees in accordance with their agreement. While it is unfortunate that
our decision may send this protracted litigation into extra innings, that result is necessitated
by the settlement agreement’s terms.