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Grantland Front Page Article - Jonah Keri on Orioles, revenue factors, and the Quest for Greatness


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Bold part key. The O's do control the rights. But with this battle of payout for TV rights with the Nats.. it's basically splitting the market in half, that huge market becomes 2 medium markets. Say MLB and the Court forces the O's to sell to the Nats or a 3rd party a 50% or 100% (3rd party). O's "revenue" decreases by 50% to 100% and become reliant on TV rights money.

But the funny thing about TV markets is, it doesn't make sense. DC market includes Hagerstown, I grew up 3 miles north of Hagerstown. Hagerstown/ Fredrick area use to be O's land. Today, it's Nats land.

So if I am an owner and I have this battle ahead. I am gonna save up money for the future after getting screwed and Angelo's will get screwed. MLB will force the issue because they literally do anything to keep a team in DC as they've shown by giving them money each year to off set the TV deal which is just being publicly reported.

This is what people don't understand. Right now the O's can't be saddled with huge contracts because we don't what the TV deal will look like or who will own it, or how the market will be divided.

Seattle and NY know their market and their TV money for the next 20-30 years. So do the Dodgers. When this issue is settled and the O's start spending money again, you'll realize how much it played a factor over the last two years. As a $100m payroll is do able. But getting caught with your pants down at $125m means players and talent is traded away so quickly we go from a building team to the Astros overnight.

So if it's so apparent that the O's are going to get screwed, why doesn't Angelos proactively find a way to settle reasonably and get on with it? MLB and the Nationals have been trying to engage Angelos and his people on this front for years now.

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So if it's so apparent that the O's are going to get screwed, why doesn't Angelos proactively find a way to settle reasonably and get on with it? MLB and the Nationals have been trying to engage Angelos and his people on this front for years now.

The O's are not going to get screwed IMO. PA is going to win this case. The arbitration process may bump the TV rights fee a little (think 10-15 %) but it will not be a crazy number. Also I highly doubt the substance of this deal changes as long as the O' don't change ownership.

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So if it's so apparent that the O's are going to get screwed, why doesn't Angelos proactively find a way to settle reasonably and get on with it? MLB and the Nationals have been trying to engage Angelos and his people on this front for years now.

[video=youtube;MszR0zuSJBc]

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Washington is a bigger market, but some of that is negated because there are a good number of Orioles fans remaining in the DC area, but seemingly very few Nationals fans in the Baltimore area.

Anyway, I think in the long run it'll work its way out to be a 50/50 split of MASN between the O's and Nats, as it should be. I'm all for the O's having extra $$, especially since the Lerners are clearly more willing to spend than Angelos, so it probably isn't truly hurting the Nationals roster too much. But on principle it seems like it'd be best to have an even share to both teams.

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Fascinating article. I hadn't seen this before. Predictably this thread seems to have ignored it.

Regardless, a lot of fascinating information in this thread.

I think this was one of the most coherent, informative, and balanced articles ever written about the Orioles. Anybody who is posting in this thread without actually reading the article is doing themselves a disservice. Read it, it's great.

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Angelos has, in very simplistic terms, been able to exercise control over, and reap the benefits of, all programming and advertising for two major league teams. That is huge, even if subscriber fees are currently below market.

Subscriber fees are the ballgame... Advertising revenues, etc... is peanuts compared to the subscriber fees. The Orioles are at a disadvantage with MASN compared to other RSNs having to pay out another team without being able to collect a second fee from every cable/sat subscriber in the region whether they wants MASN or not. I'm not saying he's not making a ton of $ with MASN just that all things being equal if the Nats were dropped off of MASN today the Orioles would be in a much better position going forward.

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"The idea that Peter was meddling was the furthest thing from the truth," MacPhail said. "When teams spend big money, almost every owner is going to get more involved, that's natural. Generally, I would try to feel him out right after the end of the season as to what kind of appetite he had for the right kind of deals. He was the one who would generally push the payroll. In January he'd see something he wanted, and he'd tell me to pursue it."

Beattie said Angelos never ordered him to chop payroll, nor did he issue any sweeping statements demanding that the co-GMs avoid spending for premium talent.
MacPhail said he had to sell the owner far more on trading away an established star like Bedard than he ever did on acquiring high-priced veteran help. He said Angelos?s guiding principle, far more than with most owners, is deliberation.

"Peter, at his core, is a lawyer," MacPhail said. "He likes to make a case, but he can listen to a case, too. I had to make a case for why [the Bedard trade] was the proper thing to do. Really it was the only thing we could have done. The Yankees and the Red Sox were in their heyday and Tampa was about to come on. We had an older team that wasn't good enough to compete, and it was pointless to keep going the same way. Peter eventually agreed."

?We've got a budget where we can compete in the East,? Duquette insisted. "We operate within the market. That?s the right way to go about it. We put significant resources into the current team, into re-signing guys. A lot of guys are getting raises because they're doing well. Through careful reinvestments, we?ve built a contending team, and we're confident we?ll do that again this year."
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A couple small mistakes in the details, but overall a very good read, and yet another place where DD says the payroll will be north of $100MM by Opening Day.

Most interesting is the revelation that fear of a ruling against the Orioles in the MASN dispute is a major reason why they've been reluctant to put much of that money back into the team.

The Orioles could have sustained a $100M payroll without MASN. The payroll in 1997 was more than the payroll in 2013. We had the Nats under control for a long time and we did not see a massive increase in team payroll. The Orioles are just a poorly run product IMO. At some point you have to go big or go home and the Orioles must find the house cozy.

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The O's are not going to get screwed IMO. PA is going to win this case. The arbitration process may bump the TV rights fee a little (think 10-15 %) but it will not be a crazy number. Also I highly doubt the substance of this deal changes as long as the O' don't change ownership.

You are going to see the Orioles charge more for MASN in our region and the way to may a 50/50 split work to everyone's advantage is for MASN to do a better job of marketing commercials and other advertisements and by airing content that could be watched when the games (and other game related activities) are not running. On the flip side, I do not know what this deal has to do with signing guys like Garza to fair market deals. The Orioles will have egg on their face if they let guys like Davis and Wieters go when they have preached that their best talent will come up through the farm system.

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He won't exclude high-priced veteran help but...

1- Doesn't like long term deal for pitchers

2- Has amongst the stringent standards for physicals

3- Works in a deliberate fashion which puts the team at a disadvantage

4- Sets a payroll limit that insures that the team can not sensibly afford premium free agent talent

Other then that, no problem at all!

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He won't exclude high-priced veteran help but...

1- Doesn't like long term deal for pitchers

2- Has amongst the stringent standards for physicals

3- Works in a deliberate fashion which puts the team at a disadvantage

4- Sets a payroll limit that insures that the team can not sensibly afford premium free agent talent

Other then that, no problem at all!

http://baltimoresportsreport.com/jonah-keri-grantland-orioles-masn-48863.html

He sure has made it difficult. But then the world is difficult. I wonder how another owner would have handled the DC takeover?

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Subscriber fees are the ballgame... Advertising revenues, etc... is peanuts compared to the subscriber fees.

While this was commonly said a few years ago, I think it is probably less true today. The whole reason that rights fees are exploding around MLB is that advertisers are increasingly hungry for live sports events that people won't record and then watch on their DVR and skip the commercials. But you'd never know that from watching a MASN telecast, where half the commercials are for product liability lawsuits or for future MASN broadcasts. I honestly don't think these guys really know what they're doing.

By the way, I don't think its that easy for MASN to raise its subscriber rates. A few years ago, they tried to force one of the cable companies in the Charlotte area to carry MASN, and the network was able to prove that there was very little interest in the Orioles and Nats in that area and that their subscribers shouldn't be forced to pay subscriber fees for a channel that almost nobody wanted, so the FCC allowed the cable company not to carry MASN.

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It has been my guess for a long time that the Nationals issue has hamstrung our progress as a franchise. Long before Jonah went into the whale. I think there are other ways that many thing could have been handled but I think several GM's have indicated, that on a meddling level, Peter is no different than all the other rich guys who get to play with baseball teams.

I wish that the Nationals issue would be resolved the way it were intended to be handled when it was negotiated.

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    • I’m aware.   You are arguing something im Not.
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