The Nats are...For Sale?!?

[imref]

Mark Lerner was interviewed before the game and he didn't look good. He's had a lot of health issues in recent years IIRC. Anyone know who's next in line?

[Five Banners]

Mark Lerner was interviewed before the game and he didn't look good. He's had a lot of health issues in recent years IIRC. Anyone know who's next in line?

Hopefully that’s just a function of age and previous issues as opposed to anything worsening. I think some of his sisters and in-laws are involved in the ownership.

[IanRubbish]

Hopefully that’s just a function of age and previous issues as opposed to anything worsening. I think some of his sisters and in-laws are involved in the ownership.

I don't like him at all as an owner but I don't think he's a bad guy.   He had part of his left leg amputated six years ago due to cancer. 

[GburgNatsFan]

The Audacy app is broadcasting 106.7's radio broadcast. I don't need the MLB AtBat app. Weird.

[GburgNatsFan]

Like below the hip. It's WAY up there. I saw him somewhere once and was surprised. You don't usually see so high and amputation, but I guess you go where the bone cancer is.

I don't like him at all as an owner but I don't think he's a bad guy.   He had part of his left leg amputated six years ago due to cancer.

[Smithian]

Leonsis offered $2 billion for the team. Also some MASN items, being discussed in MASN thread.

If you're the Lerner, how do you turn that down? The on field product is a disaster, attendance is dropping, harder economic times may be coming, interest rates rising. It seems they would want to get this thing off their hands already.

I can't imagine it getting better.

[HalfSmokes]

Leonsis offered $2 billion for the team. Also some MASN items, being discussed in MASN thread.

If you're the Lerner, how do you turn that down? The on field product is a disaster, attendance is dropping, harder economic times may be coming, interest rates rising. It seems they would want to get this thing off their hands already.

I can't imagine it getting better.

Because $2 billion might be $2 billion contingent on MASN being favorably resolved

[Smithian]

Because $2 billion might be $2 billion contingent on MASN being favorably resolved

At what point does MLB acknowledge they completely screwed the MASN deal up and seriously harmed the DC market trying to prop up a market that doesn't measure up to its own MLB team?

There's going to be an MLB expansion. I'd almost wonder if the MLB should consider using the cash flow to intercede and help buy out the MASN deal for the long term health of the DC market. This should be a money flush franchise. It's not that right now.

And maybe resolving MASN issue allows a sell or for someone from a new market to buy the team and move then Seattle --> OKC style.

Broken situation.

[Slateman]

Leonsis offered $2 billion for the team. Also some MASN items, being discussed in MASN thread.

If you're the Lerner, how do you turn that down? The on field product is a disaster, attendance is dropping, harder economic times may be coming, interest rates rising. It seems they would want to get this thing off their hands already.

I can't imagine it getting better.

They probably wanted the 2.4 billion that Forbes valued the franchise at.

[Slateman]

At what point does MLB acknowledge they completely screwed the MASN deal up and seriously harmed the DC market trying to prop up a market that doesn't measure up to its own MLB team?

There's going to be an MLB expansion. I'd almost wonder if the MLB should consider using the cash flow to intercede and help buy out the MASN deal for the long term health of the DC market. This should be a money flush franchise. It's not that right now.

And maybe resolving MASN issue allows a sell or for someone from a new market to buy the team and move then Seattle --> OKC style.

Broken situation.

Never.

And Manfred will not touch it because if he does, it becomes his problem.

[Natsinpwc]

At some point the league will have to move in if no settlement. Two franchises you can’t sell or move. I remain optimistic that the young Angelos will settle so he can sell.

[Slateman]

Really dont see how MLB gets involved. Lerners got a 2 billion dollar offer. The other owners would more than accept it. Likewise, they dont really care about MASN because they want to keep that card in their pocket should MLB move a team into "their" market.

The most valuable thing Angelos owns is the rights to the Nats TV market. He isnt giving any of that up without a tremendous windfall of money. And no one is going to come in and pay for a dying media model.

[HalfSmokes]

Really dont see how MLB gets involved. Lerners got a 2 billion dollar offer. The other owners would more than accept it. Likewise, they dont really care about MASN because they want to keep that card in their pocket should MLB move a team into "their" market.

The most valuable thing Angelos owns is the rights to the Nats TV market. He isnt giving any of that up without a tremendous windfall of money. And no one is going to come in and pay for a dying media model.

Are you positive that the offer was $2 billion irrespective of what happened with MASN?

[Slateman]

Are you positive that the offer was $2 billion irrespective of what happened with MASN?

Unless the stipulation was that Angelos completely surrender the rights and disolve MASN, I dont see how its relevant.

Mets just sold for 2.4 billion. An offer of at least 2 billion is as good as its going to get. Take the money and run.

Also: https://www.washingtonpost.com/sports/2023/04/19/ted-leonsis-washington-nationals/

Leonsis also expressed interest in buying MASN late last year, according to two people with direct knowledge of the situation who said the Orioles told him the network was not for sale. A MASN spokesman did not reply to a request to comment.

It would seem Leonsis' bid was "as is."

The Lerners are trying to get what to what the Mets were sold for in 2019. Which is pretty absurd right now.

[HalfSmokes]

Nothing in that article spells out the specifics of the bid

[Slateman]

Nothing in that article spells out the specifics of the bid

And? 2+ billion was in the table. The Lerners said they wanted more. Other MLB owners arent going to care because the Lerners got a more than fair offer. They wont care about the MASN issue because they already know RSNs are dead.

The only reason MLB would do anything is if the Lerners or Angeloses directly asked. And neither is going to do that.

The Nats arent for sale. The sale is dead. The only question now is will Mark Lerner continue to operate as a poverty franchise.

[nfotiu]

I'm kind of curious how these co-owned RSNs work.  ie, the Dodgers own half of their Sportsnet LA.   They get 300 million per year, but the RSN's revenue is likely less than half of that.   Do they share any of the risk?   Bally's and Warner Bros seem to think they can either bankrupt their RSNs as subsidaries or just give the rights back to the and stop paying them.    Do the Dodgers share in losses or can Spectrum get out of the Sportsnet deal like the others?   The Mets SNY is trying to shut down.   If you have teams like the Angels, Astros, Dodgers, Mets, and the 12 other Bally's teams, 3 Warner Bros teams all lose their RSN money, then some kind of league pooling of rights (at least on the streaming side) could happen and probably solve our problems with it.

[HalfSmokes]

I'm kind of curious how these co-owned RSNs work.  ie, the Dodgers own half of their Sportsnet LA.   They get 300 million per year, but the RSN's revenue is likely less than half of that.   Do they share any of the risk?   Bally's and Warner Bros seem to think they can either bankrupt their RSNs as subsidaries or just give the rights back to the and stop paying them.    Do the Dodgers share in losses or can Spectrum get out of the Sportsnet deal like the others?   The Mets SNY is trying to shut down.   If you have teams like the Angels, Astros, Dodgers, Mets, and the 12 other Bally's teams, 3 Warner Bros teams all lose their RSN money, then some kind of league pooling of rights (at least on the streaming side) could happen and probably solve our problems with it.

Even pooled, MASN still owns our rights. That’s different than a multi year deal with an RSN.

[IanRubbish]

CableTV subs are down 1/3rd over the last 8 years.  Leonsis is smart enough to realize the dinosaurs who created MASN are living in the past.  Issue is Mini Me probably has unrealistic expectations and wants to keep his toy.  Stadium revenue in the late 2010s was probably top 7 or so due to all the $$ tickets, concessions, and club seats.  Value of the team is also brought down with $200 million of deferrals still on the books.  Awful business decision that hurt not just the current team, but the current value of the franchise.

[nfotiu]

Even pooled, MASN still owns our rights. That’s different than a multi year deal with an RSN.

I'm not sure how much that matters.  You read an article like this and the league is seeing the writing on the wall.

https://awfulannouncing.com/mlb/rob-manfred-revenues-per-subscriber-fee-quiet-part.html

The end game is sure looking like all the streaming rights get packaged up and sold to a tech company.    Sort out the back pay for MASN, figure out a way to split up the declining RSN revenue, and move on to a future where local RSNs will be irrelevant.

[catocony]

I don't understand how a lot of you equate RSNs to just baseball.  With MASN that is the case, but the vast majority of RSNs have MLB, NBA, NHL, etc as part of their content.  You guys need to start taking that into account, because if an RSN is having problems, that affects a lot more than the local baseball team. 

[HalfSmokes]

I don't understand how a lot of you equate RSNs to just baseball.  With MASN that is the case, but the vast majority of RSNs have MLB, NBA, NHL, etc as part of their content.  You guys need to start taking that into account, because if an RSN is having problems, that affects a lot more than the local baseball team. 

For the NBA at least, their national TV deals are much more important than local and they are going to take a huge jump in national money in a couple of years. Since I’ve cut the cord, I’ve kind of forgotten that hockey exists because it seems like it’s never on a streaming service that I have. For baseball, I listen on the radio, but if I cared less, it would have dropped off of my radar too

[imref]

I saw that the nba had its highest ratings in 12 years for the first weekend of playoff games

[OfftheBat]

And? 2+ billion was in the table. The Lerners said they wanted more. Other MLB owners arent going to care because the Lerners got a more than fair offer. They wont care about the MASN issue because they already know RSNs are dead.

The only reason MLB would do anything is if the Lerners or Angeloses directly asked. And neither is going to do that.

The Nats arent for sale. The sale is dead. The only question now is will Mark Lerner continue to operate as a poverty franchise.

I'm curious (and not very familiar with what's going on with MASN atm), what would Mark Lerner gain from operating this team as a "poverty franchise", as you put it? Wouldn't spending more on the team and fielding a competitive team increase attendance and as such, revenue for the team? (Which, in turn, would increase the team's value)

[Slateman]

I'm curious (and not very familiar with what's going on with MASN atm), what would Mark Lerner gain from operating this team as a "poverty franchise", as you put it? Wouldn't spending more on the team and fielding a competitive team increase attendance and as such, revenue for the team? (Which, in turn, would increase the team's value)

Maximizing the value in the sale of a business is different than maximizing the value of the operation of a business.

The competitiveness of the team is largely irrelevant, especially given all the work Rizzo has done to improve the farm system (ie, the future of the franchise). The Lerners want to minimize future financial commitments, as they will reduce the value and profit of selling the team. For example, whoever purchases the team will argue (correctly) that Strasburg's contract is a sunk cost and adds no value to the franchise. So when they make an offer, they will, in their heads, deduct the cost of Strasburg's contract from the offer. This is why the Lerners aren't making long term or large financial commitments. Unless those contracts are incredibly favorable to the franchise, they would impact the sale price.