Do we know what the broadcast rights to a team are worth? Even the huge RSN deals were for a set time frame, the Os own the Nat’s rights in perpetuity. I just don’t see a number that doesn’t send Leonsis running
The O's don't really own the Nats rights. The contract is that MASN will eventually settle into an entity owned jointly by both teams with the Os being majority owner with a 66/33 split, I think. But they have to pay what is considered market value to both teams.
Cable subscriptions peaked in 2011 and I'd guess MASN was bringing in 250 million/year at that time. They've lost a quarter of their subscribers since then, but offset that with rate increases I'm sure. But they're on a steady downward trend of losing about 10% of subscribers a year now.
A number of around 70-90 million a year is probably the right number to land upon for market value. They have to pay it to both teams, so at some point revenue is going to be less than what they owe the teams, and that ownership of MASN is worthless or possibly a liability. All this mirrors the position where Sinclair is in with their Bally sports nets, and they are owing more in rights fees than their declining revenue can pay.
And then there is the complication of if the Bally sports nets go bankrupt and stop paying the teams, or are just sold on the cheap to the team, how the hell do you figure out what market value is any more for the 2022- years.
I can see Leonsis seeing this all as an opportunity to bail everyone out and end up with something of value. Put a number on what's owed for the 2012-22 years, get agreement that ownership of MASN is now worthless and give the Angelos a carrot of some minority ownership of a future all sports DMV streaming service.
