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

[mdbdotcom]

After he is awarded ownership of Major League Baseball, I wonder if Angelos will change it very much.

[hoosiers]

My understanding; some of this may be off as it's been a while since I was stepped through the details:

One element is Baltimore's claim that the proposed "fair market value" of the Nats' television rights would render MASN unprofitable. Part of the reason Baltimore can make this claim is that MASN appears to be fairly poorly run, drawing less in advertising deals and cable distribution deals than it should. Were MASN bringing in the money most expect it to, there would be an easier solution to this.

The Nats want to receive what would be typical in a comparable situation. Baltimore wants to pay based on a formula that utilizes actual money coming into the network.

http://forum.orioleshangout.com/forums/showthread.php/137008-New-Summary-of-Os-Nats-MASN-TV-Rights?highlight=MASN

Many of the issue are discussed in the above thread. I think the Os position has been untenable almost from the beginning as the profits head to Os ownership's pockets with each franchise receiving below market deals - presumably to both avoid revenue sharing and to give PA a disproportionate share of the profits.

At the same time, it appears that MASN has been mis-managed as a network and likely under-charging for subscription fees - which is an equally important point. If MASN were charging appropriately for the two teams, it should be able to grant both teams their respective market value AND earn a profit (which would be disproportionately given to Os ownership based on the deal). The deal, however, calls for the Os to earn the same TV rights fees or the Nats, which would likely erase most or all MASN profits to PA's dismay. The ironic thing here is that PA basically owns MASN - so, theoretically, why would the Lerners care if both teams earned the same $ - the network (PA) would lose $ and would be the one wanting out of the agreement!

The most likely solution is to break up MASN with PA getting a large payday and both teams getting their own deals. As has been posted repeatedly in this MASN discussion, it appears that the Os might benefit from MASN breakup because it appears most MASN profits are going to Os owners and not the Os. Given the below market TV right fees earned by the Os, the Os (and Os fans) have been short-changed.

I know the giddiness that existed here when the Nats came to town and MASN was set up. Folks had feared that the Nats would take away fan base and TV revenue and cripple our competitiveness. Both fears appear unfounded today given the explosion in TV rights fees, increase in the national TV contract and a reasonably competitive team earning appropriate attendance.

The biggest winner in all of this has been PA/Os ownership - banking in the neighborhood of $40M annually for a long, long time just from MASN. In fact, it would not surprise me if BOTH the annual cash profits of MASN and the ultimate sale of MASN represent more $ than what PA and company actually paid for the team! Cats get fat and pigs get slaughtered. Most circumstantial evidence has shown PA to make exorbitant profits recently from the Os and MASN with a corresponding increase in available payroll from the Os completely absent. PA's ownership in the Os could eventually end with his collective profits from the team in the $500M-$750M range while never taking team payroll much above $110M so far. I once defended PA for his handling of the team and its finances but I find it that to be an untenable position today. I think his ultimate profits next to the team's payroll look greedy, very greedy.

[weams]

After he is awarded ownership of Major League Baseball, I wonder if Angelos will change it very much.

He will be a benevolent despot from what I have seen of his track record. Driven by noblesse oblige. Of course the Yankees will be relocated to Oklahoma City and NY will get the expansion Big Apple Candy... All team records and name rights will travel with the existing club. So will John Sterling.

[Can_of_corn]

The documents

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[Nigel Tufnel]

Here's a link to all the documents filed today.

http://hardballtalk.nbcsports.com/2014/08/07/read-the-documents-filed-in-the-orioles-nationals-masn-lawsuit/

[xian4]

http://touch.baltimoresun.com/#section/-1/article/p2p-81025340/

[weams]

http://touch.baltimoresun.com/#section/-1/article/p2p-81025340/

Round one, to the law.

The court also rejected MLB's request to close the record, meaning documents filed by the Nationals and MASN will be made publicly available.

Bud be like..

[weams]

The judge also blocked the Nationals from terminating the agreement under which the network televises games.

Ah. Yes, so now we see what the Natinals were really trying for.

[isestrex]

This is the first time I've EVER been proud to have Peter Angelos as owner.

[weams]

The Lerners are like...

[weams]

there should be no dispute over rights fees because a 2005 agreement calls for using a formula developed by Bortz Media & Sports Group, a Colorado consulting firm.

Forever. It's in the deal. Look it up if you have access.

[weams]

MASN maintained that MLB's decision was unfair because, in effect, baseball was being asked to be judge and jury of its own dealings.

MASN argued in a recent petition to the court that MLB's decision "would have the effect of relieving Baseball, the Commissioner and the Washington Nationals of their contractual obligations and undertakings and would do so as a result of an arbitration that was lacking in honesty and objectivity."

[Guest]

[weams]

He will be a benevolent despot from what I have seen of his track record. Driven by noblesse oblige. Of course the Yankees will be relocated to Oklahoma City and NY will get the expansion Big Apple Candy... All team records and name rights will travel with the existing club. So will John Sterling.

[weams]