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

[Ripken]

I have never been a fan of PA but I'm sure glad he's on my team's side in this mess. I wouldn't want to battle that guy in the legal system.

And, yeah, having Fox or someone buy it out would likely be a win for everyone.

[weams]

At 55 million instead of 118 - sounds like the Orioles actually WON the arbritation

[TonySoprano]

At 55 million instead of 118 - sounds like the Orioles actually WON the arbritation

If the Orioles believed that they wouldn't be going to court.

[weams]

If the Orioles believed that they wouldn't be going to court.

Well the formula in their agreement says 39. So they have to fight to uphold that. Right?

[Ruzious]

Does....anyone else here not care? Especially in the middle of a pennant race?

I care as far as it effects the budget, but as far as the details - hell no.

[Redskins Rick]

I care as far as it effects the budget, but as far as the details - hell no.

I care, when COMCAST has to raise my rate or tell me that I have to take the Nationals package where I live.

[Frobby]

At 55 million instead of 118 - sounds like the Orioles actually WON the arbritation

118 was always absurd; MASN would be bankrupt at that number. $55 mm is on the high end compared to the average team, but MASN is in a good market. Here's an article comparing the TV deals for each team (as of the end of 2012): http://www.fangraphs.com/blogs/dodgers-send-shock-waves-through-local-tv-landscape/

[Can_of_corn]

118 was always absurd; MASN would be bankrupt at that number. $55 mm is on the high end compared to the average team, but MASN is in a good market. Here's an article comparing the TV deals for each team (as of the end of 2012): http://www.fangraphs.com/blogs/dodgers-send-shock-waves-through-local-tv-landscape/

But are they exploiting the good market properly? I thought I read that the rates MASN charges are low by industry standards.

[weams]

But are they exploiting the good market properly? I thought I read that the rates MASN charges are low by industry standards.

Does anyone here know when those contacts are open for renegotiation? Because I promise at the time that was what MASN could get.

[weams]

Since the Nationals cast the deciding vote today for new commissioner Rob Manfred, will this have any impact on the dispute?

[Can_of_corn]

Since the Nationals cast the deciding vote today for new commissioner Rob Manfred, will this have any impact on the dispute?

I don't see how. Looks to me that it is either going to end up in the courts or before that AAA panel.

If Manfred can jump right in and fix this mess that will be very impressive.

[Frobby]

I don't see how. Looks to me that it is either going to end up in the courts or before that AAA panel.

If Manfred can jump right in and fix this mess that will be very impressive.

I'm sure Manfred has had his fingers in this for quite some time.

[TonySoprano]

Since the Nationals cast the deciding vote today for new commissioner Rob Manfred, will this have any impact on the dispute?

The final vote was unanimous.

[weams]

The final vote was unanimous.

Only after the Nationals had made it official. The Unanimity was only as a show vote after the official one.

[hoosiers]

118 was always absurd; MASN would be bankrupt at that number. $55 mm is on the high end compared to the average team, but MASN is in a good market. Here's an article comparing the TV deals for each team (as of the end of 2012): http://www.fangraphs.com/blogs/dodgers-send-shock-waves-through-local-tv-landscape/

$55M is less than what the Padres received - on average.

Seattle's new deal is at $117M average. The Phillies $100M average.

Keep in mind these are these are very long term deals so that "average" fees might not be received until halfway through the deal. I would guess these deals probably start at about 80% of the average and end around 120% of the average. So perhaps Seattle is receiving around $90M or so in year one and the Phillies around $80M. The Padres are probably near $48M in Year 1 of their deal. Remember also that most of these deals also grant equity to the teams - so presumably these deals are expected to be profitable - thought profits are not shared with MLB (unlike the TV rights fees) and that teams could probably get BETTER deals if they passed on the equity.

The size of these deals makes one wonder at what point MASN rates will get to market value because the network does not appear to be generating revenue growth to support the market value of the TV rights and generate a sufficient profit.

Finally, I understand the Nats eagerness to get out from under MASN (in the absence of a more equitable ownership arrangement including true market rights on the TV deal), but if they were patient and let the rights fees get to market rates over time, MASN could be in for big problems since it has to give the same fees to the Orioles. That could cause MASN to operate at a loss or a very small profit - the burden of which would fall disproportionately to the Os MASN owners.