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Orioles are worth $1.1 billion, 7th most valuable


BMann

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The Orioles can afford to spend a lot more. If not now, when? At least sign a TOR starter and a great DH. A TOR is like 6 WAR and a great DH is like 3 WAR. That's 9 wins. Sure would've loved an extra 9 wins this year.

You know 6 WAR averages to $30 mill per... right? Ignoring what Big Peter obviously thinks about it, you think a ... Puljos or Fielder contract is GOOD for our team? As many torches and pitchforks are raised/railed against our ownership, we are still only a mid-market team doing very well tyvgdm!

My personal opinion, we could raise the payroll a bit, maybe 15 mill kicker. It would repress (ONLY repress) Angelos' and all the investors' profits, but it could be the pieces or PIECE that DD needs to craft a masterpiece. And manna would drop from the heavens like rain and next year 2015 we would have all the extra revenue from our Championship season!

But just take a shot!

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People shouldn't be at all surprised that Bloomberg states O's have $1.1B value. In fact, I am going to argue that the $1.1B number is low.

When PA did the MASN deal with MLB, MLB paid Angelos $75 million for MLBs 10% ownership of the network. That would value the other 90% retained by PA at $675 million. That was years ago. Since then, these regional networks have skyrocketed in value and these values will continue to increase in the future for a variety of reasons tied to what is driving subscriber and advertising business models.

I honestly believe if PA went to sell the O's and MASN, he would get as much as $2 billion for them. Think about this scenario. Ted Leonsis owns the Caps and Wizards. He has started Monumental Networks and when the day comes that the Caps and Wiz rights with Comcast expire, Leonsis will look to launch his own cable network. Wouldn't it only make sense for Leonsis to buy the Orioles and MASN. No other regional network in the country would have the combination of programming the had 2 baseball teams, hoops, and hockey. There are common minority owners of the Orioles and Leonsis group. Don't be surprised if that greek marriage/deal happens at some point.

The Orioles/MASN/Leonsis marriage would likely take the total value of the combo to more than $5 billion....maybe more.

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People shouldn't be at all surprised that Bloomberg states O's have $1.1B value. In fact, I am going to argue that the $1.1B number is low.

When PA did the MASN deal with MLB, MLB paid Angelos $75 million for MLBs 10% ownership of the network. That would value the other 90% retained by PA at $675 million. That was years ago. Since then, these regional networks have skyrocketed in value and these values will continue to increase in the future for a variety of reasons tied to what is driving subscriber and advertising business models.

I honestly believe if PA went to sell the O's and MASN, he would get as much as $2 billion for them. Think about this scenario. Ted Leonsis owns the Caps and Wizards. He has started Monumental Networks and when the day comes that the Caps and Wiz rights with Comcast expire, Leonsis will look to launch his own cable network. Wouldn't it only make sense for Leonsis to buy the Orioles and MASN. No other regional network in the country would have the combination of programming the had 2 baseball teams, hoops, and hockey. There are common minority owners of the Orioles and Leonsis group. Don't be surprised if that greek marriage/deal happens at some point.

The Orioles/MASN/Leonsis marriage would likely take the total value of the combo to more than $5 billion....maybe more.

I think Pete paid 75 million for 93 percent of the network.

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Baltimore Orioles owner Peter Angelos will receive a payment of $75 million for the Washington Nationals' 10 percent stake in the Mid-Atlantic Sports Network, the new TV venture formed to air Nationals and Orioles games
The Nationals' stake in the Mid-Atlantic Sports Network (MASN) will increase to 33 percent over the next two decades. Mr. Angelos' share of 90 percent gradually will decrease.
source - Washington Times, Apr. 29, 2005
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So if I'm reading this right, $75 million equals ten percent, and that's what the Nats are giving Angelos each year? So that means the network is worth $750 million? I might have to change my perspective on this....

Sign Cano for second.

Sign Ellsbury for CF, moving Jones to left.

Sign a TOR pitcher.

Win World Series.

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So if I'm reading this right, $75 million equals ten percent, and that's what the Nats are giving Angelos each year? So that means the network is worth $750 million? I might have to change my perspective on this....

Sign Cano for second.

Sign Ellsbury for CF, moving Jones to left.

Sign a TOR pitcher.

Win World Series.

The initial evaluation for MASN was set by MLB at $750M. That part you got right.

As to the rest...Since MASN was started in 2007, Angelos pays the Nats rights fees, not the other way around. Rights fees are an annual expense, which is deducted from revenues to arrive at profit/loss. The valuation of MASN is separate from this.

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So if I'm reading this right, $75 million equals ten percent, and that's what the Nats are giving Angelos each year? So that means the network is worth $750 million? I might have to change my perspective on this....

Sign Cano for second.

Sign Ellsbury for CF, moving Jones to left.

Sign a TOR pitcher.

Win World Series.

No Dip, the 75 million was a one time payment. They made a one time payment of 75 million for a 10% share that will eventually become a 33% share. That would put the initial evaluation of MASN as somewhere between 750 and 247.5 million.

Of course PA is currently interested in giving up additional equity in the team instead of increasing the payments the Nats receive (which have to be matched and paid to the O's)

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The initial evaluation for MASN was set by MLB at $750M. That part you got right.
So, MASN was valued at $750 million before it ever started operating. Years later, it is now worth $492 million.

Looks like Angelos did for MASN exactly what he did for the Orioles.

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Keep it up and you'll be swimming with the fishes Soprano!
I guess you forgot what happened to Fredo

<iframe width="420" height="315" src="//www.youtube.com/embed/FeZ5GpcG4sc" frameborder="0" allowfullscreen></iframe>

Keep in mind, Pete and pals bought the O's for $173M. His deal with MLB guaranteed a minimum 110% profit should he ever sell.

How did Angelos get such leverage? Come on, this is baseball. Use your imagination. What baseball really feared was that, in a complex lawsuit about TV territorial rights, Angelos would use the "discovery" stage of the proceedings to expose the sport's dirty laundry on who knows how many touchy subjects.

"Oh, no question. That's the correct interpretation," said one source close to the negotiations. "The collateral damage that Peter might have done to the sport in court just wasn't a risk worth taking."

Angelos's bare-knuckles legal reputation, as well as his deep knowledge of many baseball business transactions in the last dozen years, preceded him like a brass band. He didn't have to threaten. Baseball bosses simply imagined the Al Davis-like havoc he could wreak if he found a way to make public the details of controversial loans made by baseball to its owners or the machinations behind several stadium deals that somehow passed state legislatures by narrow votes in the wee morning hours.

Some owners, annoyed at Angelos's sweetheart deal, which includes a guaranteed minimum sale price of $365 million for the Orioles, argued with Selig that Angelos would never actually sue baseball. So why all the fretting?

"Bullying and suing is what Angelos does for a living," said one influential baseball source who ultimately sided with those who preferred to placate the Orioles owner. "Why would he stop at baseball?"

source - Tom Boswell, Washington Post, April 1, 2005
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