HHP: MASN/Nats/Orioles case (Inside the Courtroom)

[Frobby]

And I think he'd be correct unless it can be proven in court that there is collusion (one of MLB's favorite words) in the arbitration process that makes an unbiased ruling impossible. If what Hall was accusing is true, that could be the opening Angelos needs to move the dispute to the courts. MLB paid the Nationals a $25 million advance on the on the outcome of a future arbitration ruling? Wow! Regardless, it's a strange move by Selig. My guess is that the O's would be willing contest to the bitter end. This could be an interesting sideshow to say the least.

I think it was always known that the Nationals would be receiving some increase over the 2011 rights fees. Even MASN offered something more that that. So that may explain the advance paid by MLB.

[MrOrange82]

I have found a copy of the Nationals' filing in the court case. Not sure if this link will work, but here it goes: https://iapps.courts.state.ny.us/nyscef/ViewDocument?docIndex=q1Yd3jnkinAYt32xqJv1gA==

The juicy stuff is redacted, including the amount of the award, but is apparent that MASN didn't like the outcome. Defeating an arbitration award in court is very, very difficult. MASN can make the "bias" argument, but they agreed to the procedure so it's pretty tough for them to say they didn't know what they were getting into.

Fantastic find, Frobby. I just read through the whole thing (scanned in parts, obviously), but some of the "juicy" parts were left unredacted in the exhibits. Apparently MASN was supposed to pay the Nationals an additional $10,000,000+ (approximate number...exact number is in the PDF) with the most recent annual rights fee payment (around $9,000,000), but failed to do so. It looks like the arb award basically doubled what the Nationals had been getting paid under the agreement.

[Can_of_corn]

Fantastic find, Frobby. I just read through the whole thing (scanned in parts, obviously), but some of the "juicy" parts were left unredacted in the exhibits. Apparently MASN was supposed to pay the Nationals an additional $10,000,000+ (approximate number...exact number is in the PDF) with the most recent annual rights fee payment (around $9,000,000), but failed to do so. It looks like the arb award basically doubled what the Nationals had been getting paid under the agreement.

I read the first piece (from Birdland) as saying that the 10 million is the money owed from the arbitrated finding last month.

[atomic]

Why don't the Nationals just pay the Orioles a billion dollars to get out of the contract? That would solve everyone's problems.

[weams]

Why don't the Nationals just pay the Orioles a billion dollars to get out of the contract? That would solve everyone's problems.

MLB had Fox make an offer for MASN.

[MrOrange82]

I read the first piece (from Birdland) as saying that the 10 million is the money owed from the arbitrated finding last month.

I hadn't even read Birdland's link. Could've saved myself some time. I believe the extra $10 million just stems from the rights fees. Profit splitting is another matter.

[Br10n]

From NBC Sports...

UPDATE: The Orioles and Attorneys for MASN just contacted me with official comments on the matter. From the Orioles:

?As those who follow the Clubs are aware, the Settlement Agreement between Baseball, the Orioles, and the Nationals established MASN to compensate the Orioles for the loss of market share and other damages caused by the relocation of the Nationals to Washington, D.C. Contracts are meant to be honored and the Orioles have every expectation that this contract will also be honored. The Orioles continue to work with the Office of the Commissioner to try and resolve this dispute.?

And from Thomas J. Hall, counsel for MASN:

?MASN has honored the terms of the Settlement Agreement, including the formula in that contract for resetting the Nationals? telecast rights fees and expects all parties will do the same. That contract specifically includes an agreed upon and historically applied formula for resetting the Clubs? telecast rights fees that has been applied by Baseball to virtually every other club-owned regional sports network. MASN is confident its contract will be honored and looks forward to further discussions with all parties to try and resolve this matter amicably. Our loyal viewers should understand this is a business dispute and will have no impact on the telecast of the Clubs? games.?

Note the complete lack of reference to the arbitration Selig put together? Did the Orioles not participate in it, or are they just refusing to acknowledge its legitimacy now that it has resulted in a decision they don?t like?

One thing I do know: Peter Angelos is, more than anything, an able lawyer. And if he?s not running the show himself, he has people in place that are running it the way he?d like it to be run, and he has never feared going to court. Meanwhile, the Lerners did not get rich by being walked-over rubes. They are as litigious and determined as the next high-powered businessman, and likely more so.

[spiritof66]

As an American, I have ALWAYS wanted a league here to adopt the promotion/relegation system. Definitely keeps the season interesting for teams that are not as strong.

Even if there were popular support for it, that structure wouldn't work here. There are only 30 independent clubs, plus those in the independent leagues. The minor league teams are playing not to win games and championships, but to serve the interests of the MLB teams with which they're affiliated.

[Frobby]

Fantastic find, Frobby. I just read through the whole thing (scanned in parts, obviously), but some of the "juicy" parts were left unredacted in the exhibits. Apparently MASN was supposed to pay the Nationals an additional $10,000,000+ (approximate number...exact number is in the PDF) with the most recent annual rights fee payment (around $9,000,000), but failed to do so. It looks like the arb award basically doubled what the Nationals had been getting paid under the agreement.

Good catch. I agree that it's possible that the rights fees have doubled, though it is hard to be sure based on the letters.

[weams]

Good catch. I agree that it's possible that the rights fees have doubled, though it is hard to be sure based on the letters.

Very interesting. That would be a "win" for the Nationals in the arbitration. But nowhere near what they were attempting to secure.

[weams]

Even if there were popular support for it, that structure wouldn't work here. There are only 30 independent clubs, plus those in the independent leagues. The minor league teams are playing not to win games and championships, but to serve the interests of the MLB teams with which they're affiliated.

In fact, all the players that are on those minor league clubs are paid by the MLB club.

[TonySoprano]

This is the threat Bud's throwing down.

According to Article II of the MLB Constitution, the MLB Commissioner's powers include "suspension or removal of any owner, officer or employee of a Major League Club." The league once basically forced former Dodgers owner Frank McCourt to sell the team. If MLB chooses to respond to THR's inquiry, we'll update.

It appears that both sides are calling his bluff and telling Bud

<iframe width="420" height="315" src="//www.youtube.com/embed/mevxenJ6Mtc" frameborder="0" allowfullscreen></iframe>

[Frobby]

Note the complete lack of reference to the arbitration Selig put together? Did the Orioles not participate in it, or are they just refusing to acknowledge its legitimacy now that it has resulted in a decision they don?t like?

One thing I do know: Peter Angelos is, more than anything, an able lawyer. And if he's not running the show himself, he has people in place that are running it the way he'd like it to be run, and he has never feared going to court. Meanwhile, the Lerners did not get rich by being walked-over rubes. They are as litigious and determined as the next high-powered businessman, and likely more so.

The Orioles were not parties to the arbitration, which was between MASN and the Nats, but they may have well as been, considering that the Orioles control MASN. Both these statements were written by PR guys and seek to gloss over the fact that the arbitrators didn't interpret the contract in the way that MASN/the Orioles had argued.

As to the lawyers, they are very high powered. The firm that is representing the Nats is one of the best known business litigation firms in the US. MASN's principal lawyer, Alan Rifkin, is a well known Maryland litigator based in Annapolis, who once upon a time was a partner in my law firm. MASN also is using a prominent national litigation firm along with Rifkin. You can be sure that both sides are ready to lawyer this to death. But they'd better be careful, because ticking off Bud and the other owners will have ramifications beyond the courtroom.

[weams]

This is the threat Bud's throwing down.

It appears that both sides are calling his bluff and telling Bud

<iframe width="420" height="315" src="//www.youtube.com/embed/mevxenJ6Mtc" frameborder="0" allowfullscreen></iframe>

Bud won't resolve this. It's bigger than him in his lame duck status.

[weams]

The Orioles were not parties to the arbitration, which was between MASN and the Nats, but they may have well as been, considering that the Orioles control MASN. Both these statements were written by PR guys and seek to gloss over the fact that the arbitrators didn't interpret the contract in the way that MASN/the Orioles had argued.

As to the lawyers, they are very high powered. The firm that is representing the Nats is one of the best known business litigation firms in the US. MASN's principal lawyer, Alan Rifkin, is a well known Maryland litigator based in Annapolis, who once upon a time was a partner in my law firm. MASN also is using a prominent national litigation firm along with Rifkin. You can be sure that both sides are ready to lawyer this to death. But they'd better be careful, because ticking off Bud and the other owners will have ramifications beyond the courtroom.

It will be interesting. I am ready to watch the fireworks. Angelos has never been well liked by the other owners. Since he broke the lockout/replacement league.