Fox trying to buy MASN

[scottbbfm]

I think if Angelos sells MASN, the team would be shortly behind. Rumors were floating this summer that PA was shopping the team, but it did not include MASN. If PA still owns MASN, thats a terrible deal for a buyer but if there's a $50mm revenue stream now attached, that's a different story.

[Dark Helmet]

If Angelos sells MASN separate from the Os - the Os are screwed. It becomes a crooked owner cashing out the one thing that gave the Os a major market presence. Without a controlling interest in MASN we just became a small market team.

We are only a small market team now because our cheapskate owner chooses to be. Without MASN in the hands of a real owner - our long term ability to compete with the Sox, Yankees, and Jays is cooked. Whether the Rays can compete under the new CBA long-term has yet to be seen.

You see MASN ownership separated from the Os and all the "Os are poor" believers will finally be right.

If Angelos is the real, benevolent Marylander he's made out to be for his charity work, his true colors will become crystal clear with how this plays out.

Yikes, never thought of that.

[Dark Helmet]

I think if Angelos sells MASN, the team would be shortly behind. Rumors were floating this summer that PA was shopping the team, but it did not include MASN. If PA still owns MASN, thats a terrible deal for a buyer but if there's a $50mm revenue stream now attached, that's a different story.

Selling MASN for a billion dollars, is twice what the O's would have gotten him. Now he can sell the O's fo rcurrent market value and turn a profit, and make a ton off MASN. All at the expense of MLB.

[Gurgi]

If MASN gets sold it really makes the idea that the Angelos's will unload the Orioles more likely.

[Dark Helmet]

Also, this could make more sense out of PA keeping the payroll down. Less salary commitments, adds value to the team.

[Gurgi]

It could be true. Apparently taxes going up next year is why George Lucas sold The Empire.

Angelos should sell now if he planned to sell sometime in the next five years anyway.

[WEAVERMAN]

If Angelos sells MASN separate from the Os - the Os are screwed. It becomes a crooked owner cashing out the one thing that gave the Os a major market presence. Without a controlling interest in MASN we just became a small market team.

We are only a small market team now because our cheapskate owner chooses to be. Without MASN in the hands of a real owner - our long term ability to compete with the Sox, Yankees, and Jays is cooked. Whether the Rays can compete under the new CBA long-term has yet to be seen.

You see MASN ownership separated from the Os and all the "Os are poor" believers will finally be right.

If Angelos is the real, benevolent Marylander he's made out to be for his charity work, his true colors will become crystal clear with how this plays out.

Well said, please PGA, keep MASN, do it for the Orioles and their fans.

[ScottP]

We could have McCarver doing color in the booth.

[stomperspc]

If Angelos sells MASN separate from the Os - the Os are screwed. It becomes a crooked owner cashing out the one thing that gave the Os a major market presence. Without a controlling interest in MASN we just became a small market team.

We are only a small market team now because our cheapskate owner chooses to be. Without MASN in the hands of a real owner - our long term ability to compete with the Sox, Yankees, and Jays is cooked. Whether the Rays can compete under the new CBA long-term has yet to be seen.

You see MASN ownership separated from the Os and all the "Os are poor" believers will finally be right.

If Angelos is the real, benevolent Marylander he's made out to be for his charity work, his true colors will become crystal clear with how this plays out.

That's not true. It would presumably be a good thing for the Orioles.

The only revenue from MASN that the Orioles' organization itself sees is the annual TV right fees. I think it is pretty clear that Angelos is not taking his personal profits as majority owner of MASN and investing them into the Orioles. Everyone has always wanted (and some have assumed) that PA would do that, but he hasn't and really is under no obligation to do so.

MLB is obviously under the impression that TV right fees paid to the Nationals and Orioles would significantly increase under a FOX-owned MASN. I am not sure what their basis is for thinking that. Perhaps their contracts with MASN specify that the Orioles and Nationals can shop their TV rights elsewhere if MASN is ever sold. That would force FOX to pay the going market rate for the TV rights since they would (presumably) be bidding against other companies for the rights. If the TV right fees do increase, that is more revenue actually hitting the Orioles' books which would be a good thing.

[Can_of_corn]

It makes some sense. There have been some reports that MASN is not as profitable as it really should be, and it's likely a national media player like Fox could generate more revenue and operate more efficiently than the current owners, and thus the purchase price for MASN could be higher than the valuation you'd get based on current revenue streams. Of course, if MASN were sold, Angelos would lose the ability to stash revenue there and avoid MLB's revenue-sharing rules, but his ability to do that appears to be diminishing anyway due to the current situation with the Nats.

I think it is clearly connected with News Corporation buying into YES network. They are trying to create a challenger to ESPN.

[BrunoCherrytown]

That's not true. It would presumably be a good thing for the Orioles.

The only revenue from MASN that the Orioles' organization itself sees is the annual TV right fees. I think it is pretty clear that Angelos is not taking his personal profits as majority owner of MASN and investing them into the Orioles. Everyone has always wanted (and some have assumed) that PA would do that, but he hasn't and really is under no obligation to do so.

MLB is obviously under the impression that TV right fees paid to the Nationals and Orioles would significantly increase under a FOX-owned MASN. I am not sure what their basis is for thinking that. Perhaps their contracts with MASN specify that the Orioles and Nationals can shop their TV rights elsewhere if MASN is ever sold. That would force FOX to pay the going market rate for the TV rights since they would (presumably) be bidding against other companies for the rights. If the TV right fees do increase, that is more revenue actually hitting the Orioles' books which would be a good thing.

DC is almost the same size as Boston as a direct DMA. Baltimore is in the twenties. We will be at a severe disadvantage if we are left with a future leaning heavily on TV rights fees alone. DC is attractive there - BMore is not so much.

The idea is that to maintain financial competitiveness we need Angelos to sell both MASN and the Os together to a real owner not stay in his cash hoarding family or be chopped up separately. If its chopped up separately we are going to need a real benevolent new owner.

[WEAVERMAN]

That's not true. It would presumably be a good thing for the Orioles.

The only revenue from MASN that the Orioles' organization itself sees is the annual TV right fees. I think it is pretty clear that Angelos is not taking his personal profits as majority owner of MASN and investing them into the Orioles. Everyone has always wanted (and some have assumed) that PA would do that, but he hasn't and really is under no obligation to do so.

MLB is obviously under the impression that TV right fees paid to the Nationals and Orioles would significantly increase under a FOX-owned MASN. I am not sure what their basis is for thinking that. Perhaps their contracts with MASN specify that the Orioles and Nationals can shop their TV rights elsewhere if MASN is ever sold. That would force FOX to pay the going market rate for the TV rights since they would (presumably) be bidding against other companies for the rights. If the TV right fees do increase, that is more revenue actually hitting the Orioles' books which would be a good thing.

Those are good points, but future owners or PGA's family, once he has passed, may use the money to invest in the Orioles. MASN is prime asset, PGA has to be careful.

[clapdiddy]

DC is almost the same size as Boston as a direct DMA. Baltimore is in the twenties. We will be at a severe disadvantage if we are left with a future leaning heavily on TV rights fees alone. DC is attractive there - BMore is not so much.

The idea is that to maintain financial competitiveness we need Angelos to sell both MASN and the Os together to a real owner not stay in his cash hoarding family or be chopped up separately. If its chopped up separately we are going to need a real benevolent new owner.

I would assume, if Pete is interested in keeping the Orioles relevant, the he'd have some sort of agreement with MLB and Fox (or whoever would purchase MASN) that the O's and Nats would receive equal funds from the rights fee pool.

[stomperspc]

DC is almost the same size as Boston as a direct DMA. Baltimore is in the twenties. We will be at a severe disadvantage if we are left with a future leaning heavily on TV rights fees alone. DC is attractive there - BMore is not so much.

The idea is that to maintain financial competitiveness we need Angelos to sell both MASN and the Os together to a real owner not stay in his cash hoarding family or be chopped up separately. If its chopped up separately we are going to need a real benevolent new owner.

My point is that we are currently relying on TV rights fees alone. If Angelos keeps MASN, we will still be relying on TV rights fees alone.

If the Orioles owned MASN, I would agree with what you are saying. MASN is owned by Angelos, presumably other Orioles' minority owners, and the Nationals' owners. The only money that the Orioles have ever seen from MASN is the TV rights fees that MASN pay them to broadcast their games. This has always been the common misconception about MASN. PA could have taken his profits from MASN and invested them in the Orioles, but there is almost no evidence that this ever happened. MASN being solid is only a hit to the Orioles if you believe that Angelos was ever going to investment his MASN earnings into the Orioles.

I would be shocked that if in an open bidding situation that the Orioles didn't come away with higher annual TV right fees than the $35 m or whatever they currently get from MASN. Any increase to those right fees would be an increase to the Orioles revenue. Angelos' selling MASN will not directly impact the Orioles' revenue (unless TV right fees go up or down and MLB seems to believe they would go up).

[Brendan25]

So would this be a good or bad thing? I'm getting mixed reviews.