MASN dispute update

[Frobby]

I am glad to see the hearings were kept relatively brief and that the post-hearing briefing schedule won’t be dragged out too long.   It seems reasonable to expect the RSDC to rule before next season begins.   Then we’ll see if anyone is going to run back to court.   

[Satyr3206]

42 minutes ago, Frobby said:

I am glad to see the hearings were kept relatively brief and that the post-hearing briefing schedule won’t be dragged out too long.   It seems reasonable to expect the RSDC to rule before next season begins.   Then we’ll see if anyone is going to run back to court.   

If you mean the regular season that's about 4 and a half months. Considering this has been in litigation this long and the specifics of the case are known, is this considered a normal time frame?

[Frobby]

2 minutes ago, Satyr3206 said:

If you mean the regular season that's about 4 and a half months. Considering this has been in litigation this long and the specifics of the case are known, is this considered a normal time frame?

Hard to say.   The RSDC delayed a ruling for 2 years last time while MLB tried to broker a settlement.   

[Satyr3206]

12 minutes ago, Frobby said:

Hard to say.   The RSDC delayed a ruling for 2 years last time while MLB tried to broker a settlement.   

If my memory serves it seems the lowest amount the Orioles would owe the Nats would be 150 million. The top figure could be north of 300 to 350 million. And that's for the 2012 to 2017 period. Considering there might be Estate taxes coming, that is well over half a billion that the Ownership may have to come up with. I hope the estate planning was done well.

[makoman]

5 minutes ago, Satyr3206 said:

If my memory serves it seems the lowest amount the Orioles would owe the Nats would be 150 million. The top figure could be north of 300 to 350 million. And that's for the 2012 to 2017 period. Considering there might be Estate taxes coming, that is over half a billion that the Ownership may have to come up with. I hope the estate planning was done well.

I mean, they’ve known all along that they will owe the Nats some large amount of money. They’d be idiots to not have at least the minimal amount ready to go. If I have a $1000 bill coming I save for it; should be no different for MASN’s $150k-$300k bill  

(Also, someone said, maybe here or elsewhere, that they may have already paid some base amount and we’re just arguing over the excess, but I have no idea). 

[Satyr3206]

49 minutes ago, makoman said:

I mean, they’ve known all along that they will owe the Nats some large amount of money. They’d be idiots to not have at least the minimal amount ready to go. If I have a $1000 bill coming I save for it; should be no different for MASN’s $150k-$300k bill  

(Also, someone said, maybe here or elsewhere, that they may have already paid some base amount and we’re just arguing over the excess, but I have no idea). 

It's not 150 to 300k, it's 150 to 300 million. And that may be low depending on the decision.

[makoman]

42 minutes ago, Satyr3206 said:

It's not 150 to 300k, it's 150 to 300 million. And that may be low depending on the decision.

You’re right and that’s what I meant. Doesn’t change it. They knew this was coming and should be prepared. There was never a question that the Nats would get many millions in rights fees.

Also, this money isn’t just coming out of their pockets. The point, as I understand it, is that MASN has to pay the Nats rights fees based to some extent on what MASN is bringing in. Even though the programming sucks, they are bringing in a lot of money via the monthly fee that everyone in the area has to pay per month. I doubt MASN is broke. 

My point was just, this isn’t some surprise amount that is suddenly coming out of the Angelos bank account. This was an expected expense that should have been planned for and that had a revenue stream to pay for it. 

[Satyr3206]

39 minutes ago, makoman said:

You’re right and that’s what I meant. Doesn’t change it. They knew this was coming and should be prepared. There was never a question that the Nats would get many millions in rights fees.

Also, this money isn’t just coming out of their pockets. The point, as I understand it, is that MASN has to pay the Nats rights fees based to some extent on what MASN is bringing in. Even though the programming sucks, they are bringing in a lot of money via the monthly fee that everyone in the area has to pay per month. I doubt MASN is broke. 

My point was just, this isn’t some surprise amount that is suddenly coming out of the Angelos bank account. This was an expected expense that should have been planned for and that had a revenue stream to pay for it. 

I agree. I have no idea why this went this far but now that it has I hope someone finds a solution. I still think MLB and the Nats handled it poorly considering what the agreement was designed to do. We'll see what happens.

[hoosiers]

1 hour ago, makoman said:

My point was just, this isn’t some surprise amount that is suddenly coming out of the Angelos bank account. This was an expected expense that should have been planned for and that had a revenue stream to pay for it. 

MASN has been paying $ to the Orioles and Nats all along - likely according to the Bortz formula which was the intention of the Orioles of how rights fees would be paid to the team - but was not expressed clearly in the contract.

The original RSDC decision was for a significant amount above what MASN was paying out - about $15M-$20M per team per year for five years - that's $150M-$200M more than what has been paid out and MASN certainly doesn't have that kind of $ as excess cash.  

While I have generally agreed with the Os/MASN perspective in these deliberations, one has to keep in mind that a similar RSDC decision of $56M or so in annual rights fees to both teams would mean that MASN has shorted that $ to the Os as well as the Nats - and that $ has found it's way mostly into the pockets of MASN investors instead - chiefly Peter Angelos.

[Satyr3206]

11 hours ago, hoosiers said:

MASN has been paying $ to the Orioles and Nats all along - likely according to the Bortz formula which was the intention of the Orioles of how rights fees would be paid to the team - but was not expressed clearly in the contract.

The original RSDC decision was for a significant amount above what MASN was paying out - about $15M-$20M per team per year for five years - that's $150M-$200M more than what has been paid out and MASN certainly doesn't have that kind of $ as excess cash.  

While I have generally agreed with the Os/MASN perspective in these deliberations, one has to keep in mind that a similar RSDC decision of $56M or so in annual rights fees to both teams would mean that MASN has shorted that $ to the Os as well as the Nats - and that $ has found it's way mostly into the pockets of MASN investors instead - chiefly Peter Angelos.

Very interesting. It looks like the only solution will be for the Angelos family to pay whatever the shortage is. That check will have a lot of zeroes.

[Frobby]

57 minutes ago, Satyr3206 said:

Very interesting. It looks like the only solution will be for the Angelos family to pay whatever the shortage is. That check will have a lot of zeroes.

I’d be absolutely shocked if MASN distributed to the O’s ownership the excess funds representing the difference between what the RSDC ordered and what MASN believed it should pay.    That would be a very irresponsible thing to do, and probably an actionable breach of fiduciary duty to the minority partners.   My guess is that the money has just been building up within MASN for distribution whenever the case is resolved.   But I do expect that both the O’s and Nats have received the rights fees that MASN agreed were due, and that the MASN partners have received some “safe” level of profit that will be earned regardless of how the ruling comes out.   

[Satyr3206]

12 minutes ago, Frobby said:

I’d be absolutely shocked if MASN distributed to the O’s ownership the excess funds representing the difference between what the RSDC ordered and what MASN believed it should pay.    That would be a very irresponsible thing to do, and probably an actionable breach of fiduciary duty to the minority partners.   My guess is that the money has just been building up within MASN for distribution whenever the case is resolved.   But I do expect that both the O’s and Nats have received the rights fees that MASN agreed were due, and that the MASN partners have received some “safe” level of profit that will be earned regardless of how the ruling comes out.   

Again, very interesting. Thanks.

[weams]

13 hours ago, hoosiers said:

MASN has been paying $ to the Orioles and Nats all along - likely according to the Bortz formula which was the intention of the Orioles of how rights fees would be paid to the team - but was not expressed clearly in the contract.

The original RSDC decision was for a significant amount above what MASN was paying out - about $15M-$20M per team per year for five years - that's $150M-$200M more than what has been paid out and MASN certainly doesn't have that kind of $ as excess cash.  

While I have generally agreed with the Os/MASN perspective in these deliberations, one has to keep in mind that a similar RSDC decision of $56M or so in annual rights fees to both teams would mean that MASN has shorted that $ to the Os as well as the Nats - and that $ has found it's way mostly into the pockets of MASN investors instead - chiefly Peter Angelos.

HHP, front page. 

[weams]

MASN can go bankrupt without the Orioles involvement. 

[weams]

The new FOX deal cements a value going forward for televised baseball.  It increases it. I listened to a Fox executive just going on about just how valuable live sports is compared to any scripted content.