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

[weams]

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.

It's not a fear. It's a reality. It is why the Orioles fought the Expos in the first place. Let's remember, the Expos were an albatross and a money pit for the MLB born of Bud's contraction dreams for the Brewers. There are many layers to this Greek tragedy but the greed of 29 other owners is the reason that the Nationals are where they are and why the Orioles own their Television distribution under a specific formula forever.

[hoosiers]

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.

i am trying to understand how that fear would impact today's team considering how MASN/Os Ownership is under-paying the Os on our local TV rights by $10M-$20M assuming our fees should be higher than San Diego's last deal. What else would be different about the current team? The Os appear to be fantastically profitable BEFORE a below market TV deal.

Separately, and we have talked in circles about this for a few years, there is NO WAY that MASN should be bankrupted by an uplifting in fees to $60M. How would that be possible IF the Os rights fees are near $60M and the Nats fees are worth near $100M? Fair market deals for both teams would net a total of $160M and MASN is crying about paying $120M. What is wrong with that picture? How is it Fox could pay the Nats $100M and MASN can't? MASN can, but there is a provision that the Os must receive what the Nats receive and if the Nats receive $100M and the Os receive $100M, then perhaps MASN does lose $ if total rights fees are $200M. So, how does that great MASN contract work now that the station might lose $ and the MASN owners (mostly Os owners) would lose $? Why would the Lerners care about that after PA's heavy-handed tactics?

I only see MASN as a vehicle for PA to make out-sized profits without investing those profits in the Os. PA has the majority local TV rights to two major league ball clubs - where is that reflected in the increase in Os payroll over the last few years?

So, why should I care if MASN gets blown up and the Os get a local TV deal in excess of what MASN is paying the Os now? I'm asking.

[hoosiers]

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!"

It is crazy talk in light of our current revenues with MASN under-paying our local TV rights, the current attendance, the new national TV contract and the recent ticket increases, to believe we would be relegated to Tampa status if MASN blew up.

[Can_of_corn]

Ownership getting less revenue is going to lead to lower spending.

[weams]

It is crazy talk in light of our current revenues with MASN under-paying our local TV rights, the current attendance, the new national TV contract and the recent ticket increases, to believe we would be relegated to Tampa status if MASN blew up.

No it isn't. We would never get the contract you think we would.

[hoosiers]

Ownership getting less revenue is going to lead to lower spending.

First, I'd like to understand how ownership getting more profits from MASN has led to higher spending.

[Nigel Tufnel]

Ownership getting less revenue is going to lead to lower spending.

Seems obvious to me.

[weams]

Ownership getting less revenue is going to lead to lower spending.

We would be at LESS than Tampa status. And that is not crazy talk. There is a reason we did not want to carve up our territory, especially with the demographics that would exist. I know. It's still cool to hate Angelos. I get it. But a MASN bankruptcy would never be in the Orioles best interest. The cable and satellite companies are not going to suddenly pay a bunch more for the Orioles product untethered. Not even close to being accurate.

[Can_of_corn]

First, I'd like to understand how ownership getting more profits from MASN has led to higher spending.

Is spending on baseball operations higher since MASN launched?

Yes

[weams]

Seems obvious to me.

Some people want to believe otherwise. And I don't call them crazy.

[weams]

Is spending on baseball operations higher since MASN launched?

Yes

By a good 25 percent I'd say.

[weams]

It is crazy talk in light of our current revenues with MASN under-paying our local TV rights, the current attendance, the new national TV contract and the recent ticket increases, to believe we would be relegated to Tampa status if MASN blew up.

The new national contract was not what everyone thought it was either.

[hoosiers]

No it isn't. We would never get the contract you think we would.

And you base this on specific knowledge from an insider or gut feel?

The Os couldn't do better than San Diego?

[Can_of_corn]

And you base this on specific knowledge from an insider or gut feel?

The Os couldn't do better than San Diego?

Some folks think these types of TV deals are a bubble about to burst.

[hoosiers]

Is spending on baseball operations higher since MASN launched?

Yes

Spending on operations has risen in line with attendance increases and other sources of revenue increases.

EVERYWHERE one reads, it is pointed out that MASN enables Os ownership to contribute less in local TV rights fees because the $ handed to the teams is below market value.