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

[Redskins Rick]

Possibility, not prediction.

Corn didn't predict that it would happen, he just threw it out there as a possibility.

I know, just ribbing him.

[Can_of_corn]

I know, just ribbing him.

You know how thin skinned I am.

:002_ssad:

[hoosiers]

So, if the Nats win this proceeding, MASN will owe the Nats $20M and the Os another $20M. How exactly is that a bad thing? Ha ha.

[Can_of_corn]

So, if the Nats win this proceeding, MASN will owe the Nats $20M and the Os another $20M. How exactly is that a bad thing? Ha ha.

Instead of having 40 million in revenue that isn't subject to revenue sharing they get 20 million which is.

[hoosiers]

Does anyone here get the impression that the $6M saved from revenue sharing is invested in the Orioles by our owners in another manner? Or the remaining $14M, does that $ get to the Orioles or the owners? What about the $20M that might go to the Nats?

[osfan83]

This whole agreement was put in place to placate Angelos so the Expos could move to DC. If/When Angelos sells the team, PA is guaranteed a minimum sale price by MLB. In order to recoup that money, MLB might have to solicit an owner that believes he/she can make more money by relocating the team, especially if the Nats work a deal that allow them more TV revenue in the event of a PA sale.

Lots to be concerned about if PA sells.

[Redskins Rick]

Peter is not about to sell this team.

We have wished long and hard for this to happen over the years.

He wants to pass it down to his sons.

Just my opinion.

[Nigel Tufnel]

Does anyone here get the impression that the $6M saved from revenue sharing is invested in the Orioles by our owners in another manner? Or the remaining $14M, does that $ get to the Orioles or the owners? What about the $20M that might go to the Nats?

Here's how I think the math works if O's and Nats both were to collect another $20 million in rights fees:

O's get $20 million, 34% of which is subject to revenue sharing. So O's actually see $13.2 million.

MASN has to pay an additional $40 million in rights fees ($20M to each team), and the O's own 85% of MASN. So the O's portion of MASN is responsible for 85% of that amount, or $34 million.

34% of the additional rights fees would go to revenue sharing, and the O's would collect 1/30 of that amount, or about $500k

So, if you aggregate the O's and the O's share of MASN together, then they would lose $34M - $13.2M - $0.5M = $20.3M. So it's not a question of moving the money from one pocket to another - the O's/O's MASN would lose over $20 million.

Meanwhile, the Nats would get $13.2M + $0.5M - $6M = $7.7M, and the remaining $12.6M would be divided among the other 28 teams.

[Three Run Homer]

I'm not a lawyer, so maybe I'm missing something, but I'm surprised at how much emphasis the judge seems to have put on the supposed conflict of interest angles (the shared lawyer and MLB's interest in revenue sharing), which to me seem like relatively weak arguments on MASN's part for throwing out the arbitration ruling. To me the strongest argument on MASN's behalf is that the arbitration panel disregarded/distorted its own estalished methodology (the "Bortz formula") for computing fair market value, as per Bortz' own representatives.

[hoosiers]

Here's how I think the math works if O's and Nats both were to collect another $20 million in rights fees:

O's get $20 million, 34% of which is subject to revenue sharing. So O's actually see $13.2 million.

MASN has to pay an additional $40 million in rights fees ($20M to each team), and the O's own 85% of MASN. So the O's portion of MASN is responsible for 85% of that amount, or $34 million.

34% of the additional rights fees would go to revenue sharing, and the O's would collect 1/30 of that amount, or about $500k

So, if you aggregate the O's and the O's share of MASN together, then they would lose $34M - $13.2M - $0.5M = $20.3M. So it's not a question of moving the money from one pocket to another - the O's/O's MASN would lose over $20 million.

Meanwhile, the Nats would get $13.2M + $0.5M - $6M = $7.7M, and the remaining $12.6M would be divided among the other 28 teams.

I get the math. You seem to correlate Os/MASN as one entity, but BEFORE the $40M might have to go from MASN to the teams, where is that $40M going? Where did it go in 2013? Was it invested in the Os or returned to MASN investors?

If it were returned to MASN investors (who obviously include PA), why would the Os be worse off if they collected $20M and shared $6.8M of it with MLB?

[Can_of_corn]

I get the math. You seem to correlate Os/MASN as one entity, but BEFORE the $40M might have to go from MASN to the teams, where is that $40M going? Where did it go in 2013? Was it invested in the Os or returned to MASN investors?

If it were returned to MASN investors (who obviously include PA), why would the Os be worse off if they collected $20M and shared $6.8M of it with MLB?

You think PA and the rest of the investors will just shrug and be OK with making significantly less profit?

"Well guys, it was nice while it lasted."

[Nigel Tufnel]

I get the math. You seem to correlate Os/MASN as one entity, but BEFORE the $40M might have to go from MASN to the teams, where is that $40M going? Where did it go in 2013? Was it invested in the Os or returned to MASN investors?

If it were returned to MASN investors (who obviously include PA), why would the Os be worse off if they collected $20M and shared $6.8M of it with MLB?

Currently the O's share of MASN gets to keep 85% of the $40 million (assuming it's actually there to be kept - MASN has argued that paying out the $40 million would bankrupt the company) or $34 million. None of that runs though the team. So if you want to think of MASN and the O's as completely unrelated entities, then, sure, the O's would collect an extra $13.7 million. Woo hoo - they can resign Markakis for free! But I'd have to think that PA would take his lost $34 million into account when setting the budget for the O's payroll. I think it's naive to think otherwise.

[weams]

Does anyone here get the impression that the $6M saved from revenue sharing is invested in the Orioles by our owners in another manner? Or the remaining $14M, does that $ get to the Orioles or the owners? What about the $20M that might go to the Nats?

So you think that bankrupting MASN would be good for the Orioles that own 85 percent of it? Yeah. I get it, another bankruptcy auction. Great for the town.

[weams]

I get the math. You seem to correlate Os/MASN as one entity, but BEFORE the $40M might have to go from MASN to the teams, where is that $40M going? Where did it go in 2013? Was it invested in the Os or returned to MASN investors?

If it were returned to MASN investors (who obviously include PA), why would the Os be worse off if they collected $20M and shared $6.8M of it with MLB?

It doesn't really matter does it? No one is going to force that billionaire to tap into his own reserves The Club got to spend upwards of 100 million for a couple years. We always did say that Tampa was our business model. Maybe we could try an Astro's payroll for a few years. "Come and see the kids!"

[mdbdotcom]

I think the greatest fear is that the Gnats will cause MASN to implode and leave to make a deal with Fox for an RSN that will shut out the O's and give the Gnats a revenue stream closer to the Red Sox than the O's.

MASN would get dropped from cable networks south and west of DC that really only want the Gnats games. Meanwhile, the Gnats would become a monster team with payroll like the Angels or Red Sox. By comparison, the O's would be the orange-haired step child. A true small market team.