MLB seeks creative solution to MASN rights fees dispute between Nationals, Orioles

[McNulty]

http://www.washingtonpost.com/sports/nationals/2012/12/13/4ca6855a-4563-11e2-9648-a2c323a991d6_story.html

[crissfan172]

Hopefully creative in a "move the Nationals back to Canada" way.

[lovetoaster]

Hopefully creative in a "move the Nationals back to Canada" way.

That would be nice.

Selig made a bad deal when it came to MASN and the rights fees. Tough. Now he is looking for someone to save him. I knew it was bad from the outset, but he was so desperate to get a team in D.C. You know what, Bud? You made a bad deal. Live with it.

[Natspride]

http://www.washingtonpost.com/sports/nationals/2012/12/13/4ca6855a-4563-11e2-9648-a2c323a991d6_story.html

Obviously I'm coming from a Nats perspective but I hope this is true.

Both franchises are more than capable of standing on thier own.

[Gurgi]

This really makes me think Angelos has huge money he can spend. So I am somewhat surprised we dont get it up to 115 million or so a year.

[VThokie7]

I think it is a lock Angelos is holding back. Can't wait for the joyous day he is no longer owner. If he thought fans hated him before, give them a taste of success then don't do anything to further or sustain it and fall back in the cellar. Then see how the city feels about the team or him in general.

[SteveO]

I think it is a lock Angelos is holding back. Can't wait for the joyous day he is no longer owner. If he thought fans hated him before, give them a taste of success then don't do anything to further or sustain it and fall back in the cellar. Then see how the city feels about the team or him in general.

I hate him as a owner but as a businessman you have to give props to Angelos. Business is about making money and Pete is likely to turn his ownership of the O's and his signing off on the Nationals coming to DC into a 1 billion dollar + payday. Not to shabby. Maybe then he will stop playing Pauper Pete

[incubus]

I really hope MLB isn't stupid enough to reneg on their agreement. If they try to do something foolish like force Angelo's to sell MASN, things will get quite ugly. Angelos is one of the best litigators in the country, he won't let them strong arm him out of what he is legally entitled to. They made the agreement, now deal with it. Forcing the owner of a business to sell said business is not a creative solution to a problem, it's bullying.

[SteveO]

I really hope MLB isn't stupid enough to reneg on their agreement. If they try to do something foolish like force Angelo's to sell MASN, things will get quite ugly. Angelos is one of the best litigators in the country, he won't let them strong arm him out of what he is legally entitled to. They made the agreement, now deal with it. Forcing the owner of a business to sell said business is not a creative solution to a problem, it's bullying.

Frankly this is exactly the position Angelos wanted to put MLB. Choke the revenue stream of the Nationals to the point were MLB has to step in and do something boderline nuts to make the problem go away. MLB is not gonna force Angelos to do anything. They will simply find someone who will pay Pete's price. Likely after all is said and done Pete will have boatloads of cash and could even still have a minority interest in whatever comes along to buy him out. Not bad all for just simply not suing .... pretty well played I would say

[paulcoates]

Angelos is the Kim Jong Il of owners. People give them both money to help sustain them and the rulers stuff it into their pockets by the boatload

[kyleott]

This could give some interesting public insight into Angelos' financial strategies/personality. I will be intrigued to hear what the potential (and I expect turned down) offers will be.

[UpstateNYfan]

MLB does little or nothing about imbalances in player payrolls, why should they get involved in local TV rights? Why should they change an agreement they made because they feared the anti-trust laws from Congress? Because they still fear the anti-trust laws and the Nats will use that to their advantage. That is the only reason there is a team in DC. PA is not stupid, but the O's took a hit when they were allowed to move in and the Nats agreed to it. Too bad.

[BrunoCherrytown]

This could give some interesting public insight into Angelos' financial strategies/personality. I will be intrigued to hear what the potential (and I expect turned down) offers will be.

Well let's say that the $8 million equity stake is correct for the Nats and it's what they received in 2012. That would mean the O's took home $57.14 million in MASN equity (unless for some reason they decided not to take their equity stake, which would not be a correct assumption) - so now add in their $29million rights fees and now add in their $25 million National TV deal + the new $25 million raise to that national deal and it appears the O's owners are making $136.14 million just on TV a year. So that covers the payroll and THEN some and they haven't taken a ticket, sold a beer, or a foam finger...or cashed the rev share checks they've been receiving yet.

Thank goodness they found the money to resign Nate McClouth, because anything more expensive and we'd be screwed. If those numbers are correct, I wouldn't be surprised if it was the Nats pushing MLB to get a new MASN owner, because nothing about these numbers say that a $100 million+ (bargaining ploy or not) rights fees could be paid to one team and certainly not $200milion+ to both. But then again that goes back to the accounting. What does MASN pay in equity stakes, what does it hold in its corporate accounts from year to year and not divvy out in equity stake payouts. Me personally I own my main business with no partners and my smaller businesses I do have partners...and with none of those setups do I annually drain my business accounts by any measure close to zero to give myself equity stake payouts. So if MASN has a heavy cash position it just may be holding on to it for any number of reasons - and that could be why the Nats are looking for that bigger rights payout than what these numbers suggest is possible.

[McNulty]

Well let's say that the $8 million equity stake is correct for the Nats and it's what they received in 2012. That would mean the O's took home $57.14 million in MASN equity (unless for some reason they decided not to take their equity stake, which would not be a correct assumption) - so now add in their $29million rights fees and now add in their $25 million National TV deal + the new $25 million raise to that national deal and it appears the O's owners are making $136.14 million just on TV a year. So that covers the payroll and THEN some and they haven't taken a ticket, sold a beer, or a foam finger...or cashed the rev share checks they've been receiving yet.

Thank goodness they found the money to resign Nate McClouth, because anything more expensive and we'd be screwed. If those numbers are correct, I wouldn't be surprised if it was the Nats pushing MLB to get a new MASN owner, because nothing about these numbers say that a $100 million+ (bargaining ploy or not) rights fees could be paid to one team and certainly not $200milion+ to both. But then again that goes back to the accounting. What does MASN pay in equity stakes, what does it hold in its corporate accounts from year to year and not divvy out in equity stake payouts. Me personally I own my main business with no partners and my smaller businesses I do have partners...and with none of those setups do I annually drain my business accounts by any measure close to zero to give myself equity stake payouts. So if MASN has a heavy cash position it just may be holding on to it for any number of reasons - and that could be why the Nats are looking for that bigger rights payout than what these numbers suggest is possible.

2 million in attendance equates to 88 million in revenue (based on it costing family of 4 $176, 44 per person. Tickets this year averaged $24 per). Even if you remove the 57 million in equity that still leaves well over 160 million in revenue.

[MurphDogg]

2 million in attendance equates to 88 million in revenue (based on it costing family of 4 $176, 44 per person.

That is not all profit, not sure that you are saying it is but others have been. Also that figure is crap, the average family of four doesn't buy four hats and a program to every game.