Roch: Feldman Could Return But Hammel & McLouth Probably Won't

[weams]

Pitiful considering the increase in revenue.

Oh, It's just my guess. Not anything I have read or heard. And I feel it is reasonable. No need to spend all the money in one season. Especially considering the Nationals holding him hostage over rights.

[hoosiers]

I think we touched 100 mil this year, and you could expect as much as a 7 percent increase for next season.

As someone who as defended PA a good bit the past 10+ years, I will say that if our payroll only goes up into the $105M range that I could lead a group with pitchforks demanding an explanation of the club's finances.

PA is benefiting from increased attendance, increased MASN viewership, presumably better advertising $, and the new National TV contract. We don't have access to the books, but it increasingly appears that PA has a very high minimum profit bar on the Os (like $25M annually) or there is something the rest of the world is just plain missing regarding the Os cost structure.

It is becoming more difficult to reach any conclusion other than PA is pocketing a boatload of $ annually off both MASN and the Orioles and is not investing in the team.

[Can_of_corn]

Oh, It's just my guess. Not anything I have read or heard. And I feel it is reasonable. No need to spend all the money in one season. Especially considering the Nationals holding him hostage over rights.

And folks are complaining that the Arod case is taking too long!

Those rights don't effect how much the O's get in a negative way.

[Frobby]

Oh, It's just my guess. Not anything I have read or heard. And I feel it is reasonable. No need to spend all the money in one season. Especially considering the Nationals holding him hostage over rights.

In what way are the Nats holding PA hostage? It's a two-way street. The contract allows them to reset the rights fees once every five years, and if they can't agree, a group of arbitrators decide. They didn't agree. I don't see how that's one side's fault or the other.

[waroriole]

Pitiful considering the increase in revenue.

Gotta be an additional $35M this year (and presumably every year after) and that's not getting into the invisible MASN money. There is no excuse for payroll to be less than 115-120M from here on out.

If there isn't a premium FA that suits you, do what the Sox did and give 2-3 year deals to players that will be upgrades but not weigh you down in the long run.

That said, I think we all know that weams is correct. Payroll ain't going over 110M and I wouldn't be surprised to see it stay about the same.

[Fuzzball22]

Hunter Pence just got 5yrs/90mm.

Take it as a sign of inflating salaries b/c of the new TV deals. We need to change our expectations of the "market."

Exactly the point I was trying to make earlier. Every agent is going to use that this winter. If Hunter Pence got this my client is worth this.

[Can_of_corn]

Gotta be an additional $35M this year (and presumably every year after) and that's not getting into the invisible MASN money. There is no excuse for payroll to be less than 115-120M from here on out.

If there isn't a premium FA that suits you, do what the Sox did and give 2-3 year deals to players that will be upgrades but not weigh you down in the long run.

That said, I think we all know that weams is correct. Payroll ain't going over 110M and I wouldn't be surprised to see it stay about the same.

My guess is 105 million OD payroll.

[hoosiers]

Oh, It's just my guess. Not anything I have read or heard. And I feel it is reasonable. No need to spend all the money in one season. Especially considering the Nationals holding him hostage over rights.

Yeah, agree 100% with Frobby here. The Nats have every right to obtain market value for their TV rights. What you are talking about is the profitability of MASN if it has to pay substantially more to the Nats and Orioles.

This discussion is only going to lead to a dark place where PA's actions suggest that he has been pocketing $ from MASN hand over fist in substantial amounts represented in annual cash flow from profitability as well as the increase in value of MASN as a channel. Those amounts and the increase in value represent a tremendous return on PA's investment in MASN that is far in excess of the investment risk PA undertook.

If MASN is to pay additional rights fees to the Nats and Os in the $25M neighborhood, I would say - "Boo hoo to you PA on your decreased cash flow in MASN, isn't that $50M in annual $ headed to the Os over last year ($25M from national tv deal and $25M from MASN)? How can you justify a $7M increase in payroll under those circumstances?"

[weams]

In what way are the Nats holding PA hostage? It's a two-way street. The contract allows them to reset the rights fees once every five years, and if they can't agree, a group of arbitrators decide. They didn't agree. I don't see how that's one side's fault or the other.

I think that the letter of the agreement was such that the increases the Nationals have asked for are unjustified. And obviously an arbitrator or two agrees with me. But you do have better insight into this and I would be glad to hear what you do know.

[weams]

Yeah, agree 100% with Frobby here. The Nats have every right to obtain market value for their TV rights. What you are talking about is the profitability of MASN if it has to pay substantially more to the Nats and Orioles.

This discussion is only going to lead to a dark place where PA's actions suggest that he has been pocketing $ from MASN hand over fist in substantial amounts represented in annual cash flow from profitability as well as the increase in value of MASN as a channel. Those amounts and the increase in value represent a tremendous return on PA's investment in MASN that is far in excess of the investment risk PA undertook.

If MASN is to pay additional rights fees to the Nats and Os in the $25M neighborhood, I would say - "Boo hoo to you PA on your decreased cash flow in MASN, isn't that $50M in annual $ headed to the Os over last year ($25M from national tv deal and $25M from MASN)? How can you justify a $7M increase in payroll under those circumstances?"

I wish every penny of increased revenue was used to improve the team and the fan experience. That is not usually how things work here in America,

[weams]

Taking the RSN was a huge gamble while giving up the golden market of DC NOVA. It just happens that the gamble turned out to be a Google level investment.

[Frobby]

I think that the letter of the agreement was such that the increases the Nationals have asked for are unjustified. And obviously an arbitrator or two agrees with me. But you do have better insight into this and I would be glad to hear what you do know.

I know very little. In my opinion, without actually seeing the contract that governs the MASN rights fees and what the contractual criteria are for setting those fees, it is anybody's guess whether the Nats or the Orioles are being reasonable or unreasonable.

I will say this: it is amazing to me that it has been possible for the two franchises to run their businesses without having this issue resolved for two full years, and that this issue has not been resolved by now.

[weams]

I know very little. In my opinion, without actually seeing the contract that governs the MASN rights fees and what the contractual criteria are for setting those fees, it is anybody's guess whether the Nats or the Orioles are being reasonable or unreasonable.

I will say this: it is amazing to me that it has been possible for the two franchises to run their businesses without having this issue resolved for two full years, and that this issue has not been resolved by now.

Masn appears to govern the reset. Should either party not agree to the terms, an arbitration board is called upon to resolve it. Evidently the Nationals attempting to quadruple their annual fee on the advice of Scott Boras has left them holding the short end. Mr. Angelos got a good deal for selling his area of market responsibility. And "unresolved" is an Angelos win.

[Can_of_corn]

Masn appears to govern the reset. Should either party not agree to the terms, an arbitration board is called upon to resolve it. Evidently the Nationals attempting to quadruple their annual fee on the advice of Scott Boras has left them holding the short end. Mr. Angelos got a good deal for selling his area of market responsibility. And "unresolved" is an Angelos win.

Where did you hear of involvement from Boras?

[weams]

Where did you hear of involvement from Boras?

He has been in several of the National News accounts of the situation. His quotes have been the basis of the Nationals and Player association arguments about the dilemma.