The Nats are...For Sale?!?

[Duke of Earl]

When asked whether the reports are accurate, he said he's "not allowed to comment." That’s enough of an answer!

Exactly my immediate reaction.  If he's not involved in talks, then who is not allowing him to comment?

[PowerBoater69]

It's been known for a while that Leonsis is a bidder, so this interview adds no new information. The real questions are whether he has a right of first refusal deal, what progress is he making with MASN, and what does he see as the timeline for the transition.

[Duke of Earl]

The Nats just sent out an email blast about their Select a Seat event coming up next month for plan holders to upgrade their seats. This event is held after seats open up when plan holders fail to renew by the deadline. I'm thinking that if I were a potential owner bidding on the team I would want the Lerners to hold off on bouncing anyone from their seats until after the transfer of ownership. Give the new group time to put on the hard sell.

I don't get you.  Sounds like they will upgrade to seats that the seat holder failed to renew.  Doesn't sound like they're bouncing anyone.

[PowerBoater69]

I don't get you.  Sounds like they will upgrade to seats that the seat holder failed to renew.  Doesn't sound like they're bouncing anyone.

Absolutely this means that people have been removed from their seats from 2022, otherwise it's a major departure from previous years and a fairly useless exercise. The whole point of Select A Seat is that after plan holders have given up their seats, the remaining plan holders can upgrade to the spots that have opened up.

[aspenbubba]

Exactly my immediate reaction.  If he's not involved in talks, then who is not allowing him to comment?

He most likely signed a NDA when he first entered discussions with the Lerners and even if he dropped out of the process he could not discuss the sale until it was consummated.

[Five Banners]

He most likely signed a NDA when he first entered discussions with the Lerners and even if he dropped out of the process he could not discuss the sale until it was consummated.

The No Durant Around agreement remains in full effect

[Slateman]

The No Durant Around agreement remains in full effect

TBH, Durant not coming to DC was the smartest decision he made

[Natsinpwc]

TBH, Durant not coming to DC was the smartest decision he made

Yea the team has been so successful.
Ted desperately wanted KD and that was why he hired Scott Brooks. KD totally ignored the Wizards.

[HalfSmokes]

Yea the team has been so successful.
Ted desperately wanted KD and that was why he hired Scott Brooks. KD totally ignored the Wizards.

He hired a washed up coach who KD purposefully left. The he kept him. At least now they’ve rebounded to the point where they’re perpetually trying to get that last playin seed

[Slateman]

https://theathletic.com/3713860/2022/10/20/nationals-sale-ted-leonsis-wizards-capitals-mystics/

Gonna be Leonsis

[HalfSmokes]

The author really just assumes the Os will roll over on MASN and allow Leonsis to broadcast Nats games. If the deal is contingent on that, it’s never happening

[imref]

MLB TR has more detail for those of you without access to The Athletic:

https://www.mlbtraderumors.com/2022/10/ted-leonsis-group-emerging-as-front-runner-in-nationals-ownership-sale.html

Six months ago, the Lerner family announced they were exploring the possibility of a sale of the Nationals. As the offseason nears, some clarity has emerged on that process. David Aldridge, Britt Ghiroli and Ken Rosenthal of the Athletic write that a group led by businessman Ted Leonsis is now the “clear front-runner” to eventually take over the Nationals. The Talk Nats blog first reported in late September the Leonsis group had broken through as the most likely party to buy the Nats.

[Senatorswin]

What is wrong with the New York State Appellate court where they can't make a decision on the dispute. It's been three years now.

Also, Once that dispute is settled won't the whole process start over again with the years after 2016.

[nfotiu]

The author really just assumes the Os will roll over on MASN and allow Leonsis to broadcast Nats games. If the deal is contingent on that, it’s never happening

Within all the chaos, there is probably an opening here for a settlement.   MASN subscribers are now declining at a somewhat predictable rate, and with that the Os value from having a portion of the Nats rights is falling quickly.   Some kind of buyout of the remaining value could probably be quantified if emotions where set aside.   Leonsis could also sweeten it with some kind of agreement to off ramp the Os rights as the RSN model crumbles.

This actually has a bit of opportunity to untangle the mess and leave both the Os and Nats with a viable business.    I'm not betting money on it all working out that nicely though!!

[nfotiu]

What is wrong with the New York State Appellate court where they can't make a decision on the dispute. It's been three years now.

Also, Once that dispute is settled won't the whole process start over again with the years after 2016.

Those are both very good points!  The Lawyer lobbyists must be strong in NY??

[HalfSmokes]

Within all the chaos, there is probably an opening here for a settlement.   MASN subscribers are now declining at a somewhat predictable rate, and with that the Os value from having a portion of the Nats rights is falling quickly.   Some kind of buyout of the remaining value could probably be quantified if emotions where set aside.   Leonsis could also sweeten it with some kind of agreement to off ramp the Os rights as the RSN model crumbles.

This actually has a bit of opportunity to untangle the mess and leave both the Os and Nats with a viable business.    I'm not betting money on it all working out that nicely though!!

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

[Five Banners]

What is wrong with the New York State Appellate court where they can't make a decision on the dispute. It's been three years now.

Busy trading Mets Topps cards?

[nfotiu]

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.

[dracnal]

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.

It's been a while, but I believe the biggest issue is that MASN has to pay both teams what the Nats viewing rights are worth. Whatever valuation the Nats were given, the Os also had to be given, and somewhere around 2012 that combined number was enough to basically bankrupt MASN. I may be wrong on the details here because it's been a looooong time but I'm pretty certain I'm right about the Os getting at least as much as the Nats and the combination being too much.

[CowherPower]

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.

Perfectly logical and makes total sense.  Too bad Angelos is a slug and will never consider this.

[Natsinpwc]

Perfectly logical and makes total sense.  Too bad Angelos is a slug and will never consider this.

Son is running the team. I assume the elder is incapacitated. Plus they want to sell the team.

[Slateman]

Perfectly logical and makes total sense.  Too bad Angelos is a slug and will never consider this.

Peter Angelos is basically dying. His son took over baseball stuff in 2020. Now his son is getting sued by his other siblings. This could be a good time for Leonsis to strike

[HalfSmokes]

Peter Angelos is basically dying. His son took over baseball stuff in 2020. Now his son is getting sued by his other siblings. This could be a good time for Leonsis to strike

The more logical thing would be to just sell MASN to the highest bidder, maybe after returning the Os’ rights to the franchise

[Slateman]

The more logical thing would be to just sell MASN to the highest bidder, maybe after returning the Os’ rights to the franchise

I feel like they're gonna do whatever maximizes money. And I think its gonna cost Ted a lot of money to bring MASN under Monumental Sports

[HalfSmokes]

I feel like they're gonna do whatever maximizes money. And I think its gonna cost Ted a lot of money to bring MASN under Monumental Sports

I don’t see why they’d limit the bidding to the Nats’ ownership. I doubt they’re looking to do Ted a favor