Nats looking to get bigger piece of MASN pie

[NewMarketSean]

http://www.washingtonpost.com/blogs/nationals-journal/post/nats-hire-media-consultant-to-improve-masn-deal/2011/10/10/gIQAZg2LaL_blog.html

Something tells me if they do get a better deal, it will show up in their payroll.

[waroriole]

Awesome. More reason for PA not to spend.

[BaltimoreTerp]

I don't understand this.

The Nationals own part of MASN, which grows incrementally until reaching 33% of the network in another decade or so. But they also receive money directly from the network in rights fees. Both of which are part of the deal where Angelos gave up his claim on DC.

However, how can they renegotiate the fee they get? What exactly is their leverage? They can't break away from the network and start their own or sign with Comcast.

[waroriole]

I don't understand this.

The Nationals own part of MASN, which grows incrementally until reaching 33% of the network in another decade or so. But they also receive money directly from the network in rights fees. Both of which are part of the deal where Angelos gave up his claim on DC.

However, how can they renegotiate the fee they get? What exactly is their leverage? They can't break away from the network and start their own or sign with Comcast.

From the article, the leverage is that they can renegotiate to a fair market price. I don't know who the arbiter of FM is though.

[scOtt]

I saw the title as "Nats looking to get bigger"

<img src="http://washingtonexaminer.com/files/blog_images/order-viagra.jpg" />

[BaltimoreTerp]

From the article, the leverage is that they can renegotiate to a fair market price. I don't know who the arbiter of FM is though.

Ok, but is that a true negotiation, or more like one of those loans where you can "reset" the interest rate at a certain point if it is more favorable to you?

[BaltimoreTerp]

I saw the title as "Nats looking to get bigger"

<img src="http://washingtonexaminer.com/files/blog_images/order-viagra.jpg" />

I was hoping for something to do with HGH...

[scOtt]

I was hoping for something to do with HGH...

Well... the little blue pill is more recognizable...

And I don't mean to troll another of Sean's threads... I never remember hearing of this reset clause. I thought it was a done deal, over 23 years to 33% (or exactly whatever it is...)

Anyways, good luck to them, entering legal negotiations (and litigation...) against Big Peter. :laughlol: It's the only GOOD thing Peter brings to the table. Ask Comcast...

[waroriole]

Ok, but is that a true negotiation, or more like one of those loans where you can "reset" the interest rate at a certain point if it is more favorable to you?

I think it's a bit too complex for me to be able to explain it.

[Can_of_corn]

From what I read it sounds as if the thread title is deceiving. The Nats are not trying to get a larger share of the MASN rights, they are merely using a per-established window to renegotiate the fee paid for the broadcasting rights.

[scOtt]

From what I read it sounds as if the thread title is deceiving. The Nats are not trying to get a larger share of the MASN rights, they are merely using a per-established window to renegotiate the fee paid for the broadcasting rights.

That's the $25 million each team is paid?

[Can_of_corn]

Yes, that is how I read it at least.

[scOtt]

Yes, that is how I read it at least.

That could lead to the ODDest of situations... Nats sue MASN for more money. PA joins in saying the O's should get even more than the Nats might negotiate... PA and the Orioles suing PA and MASN.

[Can_of_corn]

That could lead to the ODDest of situations... Nats sue MASN for more money. PA joins in saying the O's should get even more than the Nats might negotiate... PA and the Orioles suing PA and MASN.

Shouldn't lead to a lawsuit, it is a regular window for renegotiation.

[Frobby]

There is a thread on this on the Orioles page, too. As I said there, it seems to me that if the Nats get a bigger rights fee from MASN, it will be in Angelos' best interest to increase the fee to the Orioles as well. Otherwise, the Nats are getting fair market value for their rights, plus through through their owndership interest in MASN they are getting 13-16% of the cash that is kept within MASN that represents the underpayment to the Orioles. Best case for Angelos is to underpay both teams, but once he has to pay the Nats FMV, it actually harms his interests to pay the Orioles anything less, especially considering that the Orioles have better ratings.