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

[BrunoCherrytown]

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.

If they were breaking even on all of that you'd still have 9-digits from TV...

[MurphDogg]

If they were breaking even on all of that you'd still have 9-digits from TV...

I am not arguing with the tv figures, I don't know enough about that to have formed an opinion. What I do know is those family of four surveys have some value comparing one team to another (even then they are limited because some teams discount more than others, stadium location dictates parking prices, etc.) but minimal value in determining revenue and no value on its own in determining profit.

[McNulty]

I am not arguing with the tv figures, I don't know enough about that to have formed an opinion. What I do know is those family of four surveys have some value comparing one team to another (even then they are limited because some teams discount more than others, stadium location dictates parking prices, etc.) but minimal value in determining revenue and no value on its own in determining profit.

Seems to me that spending an additional 20 bucks per person on concessions isn't that big of a leap. That's why I referenced it. I know I spend WAY more than that on beer, but even without the beer I probably spend at least 15 bucks on food, water and parking.

Obviously there are operating costs that go along with the 160+ million figure I threw out there, but it still doesn't justify keeping the payroll at or below 100 million every year.

[Br10n]

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.

The two teams are tied at the hip forever. If this deal happens PA will ensure they get equall tv money going forward. It is in current agreement and it is not going away with PA negotiating a new deal. The Os will get the larger percentage of the buyout and they will get equall tv money going forward. Love PA or hate him...I am glad he was our owner when Wahinton stole the Expos.

[weams]

The two teams are tied at the hip forever. If this deal happens PA will ensure they get equall tv money going forward. It is in current agreement and it is not going away with PA negotiating a new deal. The Os will get the larger percentage of the buyout and they will get equall tv money going forward. Love PA or hate him...I am glad he was our owner when Wahinton stole the Expos.

If not for Angelos, our regional team might well be the Expos. Who know what may have happened to the Orioles. How long has the stadium lease been running for the original agreement. I assume that it was a 30 year lease. With today's team prices, I am sure that 8 years of it could be bought out in a new deal. Bringing a team to Washington again was a really big deal. And not for the feint of heart.

[brooksfrankjim]

I think Angelos has been a horrible owner but I wouldn't give an inch on this. If the reports are accurate, MASN is generating $80m profit per year. The ENTIRE purpose of agreeing to the Expos move was to guarantee the Orioles long-term viability by granting the Orioles 2/3 ownership of the regional network. The Orioles ownership position today in MASN is worth $67m per year and that number will increase every year until the end of time. MLB would have to find a buyer that would generate equal or better economics than what Angelos is getting today....plus the equity value of owning the network. The Orioles would have to receive nearly $2billion for their stake in the network to make this feasible.

[Frobby]

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.

They can't force Angelos to sell MASN. But, if they reset the Nats' rights fees to be equal to their fair market value, and MASN can't make a profit with rights fees set that high, then as a practical matter it will make sense for MASN to be sold to a more efficient operator who can make a profit even with the rights fees set at a much higher level. So long as MASN is still contractually required to pay equal rights fees to the O's and the Nats, the Orioles won't be hurt if MASN is sold.

[Satyr3206]

I honestly think Mickey Mouse would be better than Selig. He is beyond moronic. He wanted the Nats in DC. Live with it.

[DrungoHazewood]

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.

But a significant number of people do pay a lot more than that in parking, beer, premium tickets, suite rentals, Camden Club dinners, Boog's BBQ, etc. I think, on average, $44 in revenue per ticket is a reasonable number.

[TonySoprano]

MLB's "creative solution" is to find a buyer and then what? Make Angelos an offer he can't refuse?

[NATTYBO's]

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.

There's no way Angelos would give up the the deal he brokered unless he would recieve a huge payout. If that happens it would go against his whole argument about obtainging revenues to keep the O's competitive.

[Frobby]

MLB's "creative solution" is to find a buyer and then what? Make Angelos an offer he can't refuse?

Here's the offer: sell MASN or the arbitration panel of three MLB owners will jack the Nats' rights fees up to $110 mm, like they asked, and bankrupt it.

[TonySoprano]

Here's the offer: sell MASN or the arbitration panel of three MLB owners will jack the Nats' rights fees up to $110 mm, like they asked, and bankrupt it.

In other words, MASN would go the way of.....

[baltfan]

If I am Angelos I would do anything to keep MASN together. Fair or not, he cut a deal with MLB giving him Nationals broadcast rights in perpetuity. The owner of the Nationals knew that was the deal when he bought the team. He probably even got the team cheaper because whoever bought the team knew they wouldn't be able to negotiate a better TV deal. It seems as if the Nationals are trying to basically force Angelos to rip up the deal. He should stick to his guns.

[baltfan]

They can't force Angelos to sell MASN. But, if they reset the Nats' rights fees to be equal to their fair market value, and MASN can't make a profit with rights fees set that high, then as a practical matter it will make sense for MASN to be sold to a more efficient operator who can make a profit even with the rights fees set at a much higher level. So long as MASN is still contractually required to pay equal rights fees to the O's and the Nats, the Orioles won't be hurt if MASN is sold.

If the above were true, then clearly the amount wouldn't be fair market value. I understand the comps the Nats are pushing but find it hard to believe that they are realistic for such a young franchise with a fanbase in its infancy.