The Nats are...For Sale?!?

[machpost]

MCI Center was built in a dump of a neighborhood.  I remember coming out of the Gallery Place Metro to walk up 7th st to near New York Ave. and there were needles, condoms, empty liquor bottles and the occasional crack pipe lying around the sidewalks.  That was in 1994-95 too.  Now it's a ritzy area.  Remember all of the crack houses up on Rhode Island Ave around North Capitol St?  What was a flophouse shooting gallery will now cost you some serious coin.  Remember the danger around the old bus station a few blocks up 1st St NE from Union Station?  It looks like Reston Town Center now with little white kids riding bikes up and down the streets. 

The area around Nats Park was a dump before the stadium was built.  It's now a pretty safe area.  The days of security guards at the Navy Yard warning Marines going up to the Barracks to be careful walking at night are long since gone.  The area is pretty safe.  It's not McLean but I haven't heard of any fans getting mugged or anything.  Certainly not shot at.

I went to a Caps game last week and I was pretty surprised at how many empty storefronts there are within a block of Capital One Arena. A lot of the bars and restaurants I used to go to are gone. The neighborhood doesn't feel unsafe and the pandemic is surely the main factor in all the closures, but it's still a bit jarring. Feels like the neighborhood is backsliding a bit.

[Smithian]

I went to a Caps game last week and I was pretty surprised at how many empty storefronts there are within a block of Capital One Arena. A lot of the bars and restaurants I used to go to are gone. The neighborhood doesn't feel unsafe and the pandemic is surely the main factor in all the closures, but it's still a bit jarring. Feels like the neighborhood is backsliding a bit.

It is strange. I thought that games going back in-person would bring a rebirth and it hasn’t really happened. I think those same bars and restaurants are still struggling from downtown crowd not being back.

I do feel the Rosa Mexicano space is a goldmine that should be open. Can’t remember a Caps or Wizards game where that place wasn’t shoulder to shoulder an hour before start.

[bluestreak]

The demise of the Chinatown area is really quite stunning. Not surprising, but shocking when you see how much it’s changed. Slowly coming back, but not sure if the office density will ever get back to where it was pre-plague.

[HalfSmokes]

The demise of the Chinatown area is really quite stunning. Not surprising, but shocking when you see how much it’s changed. Slowly coming back, but not sure if the office density will ever get back to where it was pre-plague.

It's even worse when you compare it to the suburban downtowns (Bethesda, Tysons, Clarendon, even Crystal City) which all seem to be thriving

[GburgNatsFan]

It's even worse when you compare it to the suburban downtowns (Bethesda, Tysons, Clarendon, even Crystal City) which all seem to be thriving

Could it be the mix of residential in those places? People using those suburban downtown amenities may not be going there from work, but from the home office...

[Smithian]

https://www.forbes.com/sites/mikeozanian/2022/04/14/rubenstein-and-leonsis-mulling-purchase-of-washington-nationals/?sh=796e0d24634b

Apparently the Nationals are $500 million in debt. Which does seem less than ideal.

[HalfSmokes]

https://www.forbes.com/sites/mikeozanian/2022/04/14/rubenstein-and-leonsis-mulling-purchase-of-washington-nationals/?sh=796e0d24634b

Apparently the Nationals are $500 million in debt. Which does seem less than ideal.

That whole paragraph stands out

"Another possible explanation for a sale is that the Nationals, according to people familiar with the matter, currently have over $230 million in deferred player compensation on their books for players like Max Scherzer (now on the New York Mets) and Stephen Strasburg. In addition, the Nationals also have some $500 million of debt. Such liabilities would seemingly make it challenging for the team to retain its young star Juan Soto, who reportedly rejected a $350 million contract extension before the lockout, and compete for another title any time soon"

If the estimated value is $2 billion, $750 million in debt and deferred compensation seems rather large. If Soto had said yes, that's over half the value of the franchise in either debt or future obligations

[Smithian]

That whole paragraph stands out

"Another possible explanation for a sale is that the Nationals, according to people familiar with the matter, currently have over $230 million in deferred player compensation on their books for players like Max Scherzer (now on the New York Mets) and Stephen Strasburg. In addition, the Nationals also have some $500 million of debt. Such liabilities would seemingly make it challenging for the team to retain its young star Juan Soto, who reportedly rejected a $350 million contract extension before the lockout, and compete for another title any time soon"

If the estimated value is $2 billion, $750 million in debt and deferred compensation seems rather large. If Soto had said yes, that's over half the value of the franchise in either debt or future obligations

On its face, an underwater team where your first move will possibly be letting your superstar walk is a total crap sandwich.

On the other hand, sports teams are rapidly appreciating.

[Natsinpwc]

But some of the experts here said the deferred salaries were inconsequential. LOL.

[nfotiu]

How does the MASN money fit in here?   It has to be over 500 million owed at this point.

[HalfSmokes]

How does the MASN money fit in here?   It has to be over 500 million owed at this point.

If they ever actually see a dime of it. If MASN has to pay 500 million to the nats and match to to the Os, then MASN will be insolvent

[UMDNats]

The Nats will never see a dime from MASN. The network is basically broke. The only people making money on that case are the attorneys, as usual.

[nfotiu]

If they ever actually see a dime of it. If MASN has to pay 500 million to the nats and match to to the Os, then MASN will be insolvent

MASN has been a cash cow for the last decade and still will be for a bit.   Their carriage fee revenue is in the 200-300 million/year range.   People write it off as a crappy network that must not be making much money, but they bring in a lot of dough.

Where is all that money going?   They've brought in probably 3 billion over the last 10 years.   Theoretically, they should have 500 million or more set aside for the Nats.   The value of the money owed to them is more than their debt and more than half the value of the team likely.    It has to be a major factor in untangling the finances for a sale.

[UMDNats]

MASN has been a cash cow for the last decade and still will be for a bit.   Their carriage fee revenue is in the 200-300 million/year range.   People write it off as a crappy network that must not be making much money, but they bring in a lot of dough.

Where is all that money going?   They've brought in probably 3 billion over the last 10 years.   Theoretically, they should have 500 million or more set aside for the Nats.   The value of the money owed to them is more than their debt and more than half the value of the team likely.    It has to be a major factor in untangling the finances for a sale.

They're keeping Bob and Kevin at home while the team is on the road and I consider it a major upset if Zuckerman travels at all. They have no money. I assume it's all been funneled to the O's.

[DPMOmaha]

Rubenstein and Leonsis seem like a good option in terms of owners trying to build a consistent contender.

[Smithian]

I just can't see Leonsis coming on board and not having a plan to keep Juan Soto on board or at least immediately signing on lots of talent should he walk.

In my opinion, he has an overall positive image in DC. Why sully that by being the owner who lets Soto walk?

Which I imagine is the stressor for a lot of potential owners. Soto will know his value.

[UMDNats]

Leonsis is all about doing the easiest thing possible which is why he nearly squandered Alex Ovechkin's career and why he will install Rizzo as GM for life (after all he kept Ernie forever and his 'ZARDS are a turd franchise).

Ted is judged by his peers who are Dan Snyder and the Lerner family, both insanely low bars to clear. He's fine, but he also lucked into the greatest hockey player of all-time. Everyone forgets the early-2000s teams which were an abomination and more resemble whatever you call the dumpster fire that is the current Wizards franchise.

I'd rather not have Ted own 3 major league teams in my city.

[HalfSmokes]

Leonsis would extend Soto and the do the bare minimum to look like he was trying to win.

[Natsinpwc]

Criticism of Ted and the Wizards seems fair.  However with the hockey team I believe he had two Presidents Trophy winners and a Cup winner.  I put it on the players for "squandering" any more Cups and the Stanley Cups even more than MLB are really a crap shoot.  He assembled a team that has been competitive for a long run.  He kept Oshie when most seemed to think that was not possible.  Letting Trotz go seemed dumb.  Hiring Lady seems good now but has not resulted in any playoff success. 

So overall I agree he will want to sign Soto just as he clearly wants to keep Beal with the Wizards.  I don't really have a problem keeping Rizzo unless he has an eye on something better which is doubtful.  In any event this looks like a shared thing with Rubenstein. 

[HondoKillebrew]

Can it really be said that Ted's effort with respect to the Wiz has been lacking?  Or just primarily that he was loyal to Ernie for far too long? 

[imref]

maybe Elon Musk can announce he's buying the Nats, then announce he doesn't have the money?

[miller10]

Leonsis is all about doing the easiest thing possible which is why he nearly squandered Alex Ovechkin's career and why he will install Rizzo as GM for life (after all he kept Ernie forever and his 'ZARDS are a turd franchise).

Ted is judged by his peers who are Dan Snyder and the Lerner family, both insanely low bars to clear. He's fine, but he also lucked into the greatest hockey player of all-time. Everyone forgets the early-2000s teams which were an abomination and more resemble whatever you call the dumpster fire that is the current Wizards franchise.

I'd rather not have Ted own 3 major league teams in my city.

I would rather not have Ted own any teams.  Just a money grubbing egomaniac but honestly, who can afford to buy a sports franchise that isn't?

[HalfSmokes]

I would rather not have Ted own any teams.  Just a money grubbing egomaniac but honestly, who can afford to buy a sports franchise that isn't?

How often have the Wizards paid the luxury tax?

[CowherPower]

Leonsis would extend Soto and the do the bare minimum to look like he was trying to win.

And given what the Nats ownership has done since last year, I would take this!  You can build around a multi-generational talent like Soto.  The trick is to get him (and Boras) to sign, and in that regard, you need to look like you are trying to win.

I normally would have accepted the current rebuilding phase, but to do that and also have the nerve to jack up prices 20% is just unacceptable.  I still can't wrap my head around their thinking on the price hike.  I'm sure the idea of selling the team didn't just come to them in the last few weeks, so they must have made a calculated decision on raising prices that much.  But how does that help the value of the team?  I don't have any numbers, but I have to believe that their season ticket holders are way down this year. 

[SkinsNatFan21RIP]

How often have the Wizards paid the luxury tax?

Ted doesn’t mind spending money. At one point the wizards had three max contracts on their roster. Now I don’t think he’s a good owner when concerning the wizards but he will absolutely pay the homegrown stars. If he purchases the team the days of our own walking away is pretty much over. I’m not the worlds biggest fan of Ted but I think you can do a whole lot worse.