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


furryburres

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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.

All very good thoughts here.

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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?

Right, difficult, now add in that Maryland has state income tax and doesn't have the opportunities to make money outside of baseball that say New York does and it becomes effectively impossible if they have to compete with other teams.

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This was a useful synopsis of the Keri article, too. Here are the five things Zach Wilt says he learned from the article:

1. Orioles Spent Big In The Late 90′s Due To Good Attendance

2. Peter Angelos Isn't The Meddling Owner Everyone Thinks He Is

3. MASN Isn't Generating As Much Revenue As It Could (Should)

4. Angelos Is Preparing For A Doomsday

5. Major League Baseball Is Sending The Nats Some Cash

There was a sixth thing I learned: that the reason Vlad didn't come here is that Jim Beattie wouldn't offer him enough. At the time, the Orioles tried to make it sound like Vlad wouldn't listen to the Orioles' offers because Baltimore didn't have a large Hispanic community, but Beattie put that to bed here. That was the single biggest free agent failure in all my years of following the Orioles, in my opinion. The market conditions were perfect for the Orioles to get Vlad, and they tried to lowball him at the outset of negotiations and they blew it. That still kills me.

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. When I asked Beattie if there was a player he wanted that the Orioles failed to acquire because of budget constraints, however, he didn?t hesitate.

"Vladimir Guerrero," Beattie said. "I had a good relationship with Vladi, and I thought we had a good chance to sign him. It didn?t work out. We were not ready to go to the money that [Guerrero's agent] was talking about."

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Loved this. But I must spread soem reputation around before giving it to weams again. Great to see you last weekend, and I enjoyed talking with your dad.

You know I always enjoy seeing you! I had quite a circus I was attending to with that whole troop. I would have enjoyed more conversation.

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There was a sixth thing I learned: that the reason Vlad didn't come here is that Jim Beattie wouldn't offer him enough. At the time, the Orioles tried to make it sound like Vlad wouldn't listen to the Orioles' offers because Baltimore didn't have a large Hispanic community, but Beattie put that to bed here. That was the single biggest free agent failure in all my years of following the Orioles, in my opinion. The market conditions were perfect for the Orioles to get Vlad, and they tried to lowball him at the outset of negotiations and they blew it. That still kills me.

I believe this. Of course Raffy, Bigbie, Roberts, Tejada, Benson, Gibbons and Grimsley would have all made it moot with their PED abuse. I still would have enjoyed Vlad in his prime.

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The issue isn't whether they have 50% of the profit. The issue is whether there will be any profit if the MLB arbitration panel jacks up the rights fees to their "market value" as the Nats have demanded. And to be clear, the contract allows the Nats to demand a "reset" of the rights fees once every five years. They are not asking anyone to breach the contract.

The outcome of this dispute has a very big impact on the Orioles' ability to spend, and it is undecided after two years, which is incredible to me.

But, you notice, it hasn't impacted the Orioles and their ability to make money and bank it.

Sorry, but it sounds like Angelos is using the old lawyer stall tactic, to delay things, until they can be decided more in his favor.

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But, you notice, it hasn't impacted the Orioles and their ability to make money and bank it.

Sorry, but it sounds like Angelos is using the old lawyer stall tactic, to delay things, until they can be decided more in his favor.

I'm not sure why you are saying that the MASN dispute hasn't impacted the Orioles' ability to make money and bank it. Let's say MASN makes a profit of $130 mm before paying any rights fees. They pay out rights fees of $35 mm a team (approximately), so that leaves $60 mm in theoretical profits for MASN. Under normal circumstances, 83% of that, or about $50 mm, would go to the Orioles. But the Nats have exercised their right to "reset" the rights fees, which they claim should be about $100 mm. In that circumstance, the O's don't know if there will be any profits to distribute after rights fees are paid, so all they can really do is leave that money sitting within MASN until the rights fee issue is resolved. It is very much in their interest for the rights fees to be as low as possible, so they will fight hard on this issue. But I don't see how the profits of MASN can be paid out until the rights fee issue is decided.

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But, you notice, it hasn't impacted the Orioles and their ability to make money and bank it.

Sorry, but it sounds like Angelos is using the old lawyer stall tactic, to delay things, until they can be decided more in his favor.

I do not know that at all. I have no idea how much cash the Angelos family has. Or even how much net revenue they have from their two large entities. I do not know that any of this is made up. Or real. I do not know.

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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.

Just curious, why is this "as it should be?" That's not the deal that was negotiated at the time the Nats moved to DC. They were aware of the conditions necessary for their move and ostensibly signed off on them.

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Just curious, why is this "as it should be?" That's not the deal that was negotiated at the time the Nats moved to DC. They were aware of the conditions necessary for their move and ostensibly signed off on them.

I just wish they had gone to San Juan. Or Vegas. Like they were supposed to. The bloom is off Harper and Strasburg. The 100 million dollars lob pass has gone innocuously out of bounds. It will get resolved in a way the the Orioles can afford.

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Just curious, why is this "as it should be?" That's not the deal that was negotiated at the time the Nats moved to DC. They were aware of the conditions necessary for their move and ostensibly signed off on them.

Not only that, the deal was done before the Lerners bought the team. So, the price they offered to pay for the team undoubtedly factored in the TV deal.

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Where the Nationals are, makes no difference to the quality of owner Angelos is, he is what he is.

Nothing would be different here, except for a few non Oriole fans in the stands hunger for baseball.

If Keri is right about anything in his article, it matters quite a bit to where the Orioles would have been the last two years. I can imagine that to a guy like Peter, this has been pretty much all consuming.

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