MASN dispute update

[Frobby]

4 minutes ago, OsFanSinceThe80s said:

Agreed. There isn’t a good reason for this lawsuit to be never ending. 

The main case over the rights fees actually hasn’t been in the courts since January 2018.    The dawdling has been with the RSDC finally holding a second arbitration, as ordered by the Court.   A hearing finally took place in November, but no outcome is known yet.   

[Frobby]

6 minutes ago, TonySoprano said:

Well, that link is password protected.

Yeah, and it didn’t lead where I wanted.   I’ve edited my post accordingly.  

[OsFanSinceThe80s]

4 minutes ago, Frobby said:

The main case over the rights fees actually hasn’t been in the courts since January 2018.    The dawdling has been with the RSDC finally holding a second arbitration, as ordered by the Court.   A hearing finally took place in November, but no outcome is known yet.   

Since you’re the expert.

Is it typical for a lawsuit like this one to drag out for years? 

[NCRaven]

I find it interesting that the Nationals claim that they have no obligation to pay back the $25 million received from MLB.  To me, that means that MLB has taken a direct interest in the Nationals since it doesn't appear to be a loan, with interest and a period during which the loan must be repaid.  From a lay perspective, it does look like MLB has directly intervened in the interest of the Nationals and any process governed by MLB, from the Orioles point of view, would be tainted.

[esmd]

The Orioles aren't clean in this, but IMO the Nationals' and MLB's hands are even dirtier.  Difficult to prove, but I have no doubts that MLB is taking sides in this and backing the Nationals.  So in that respect, I can somewhat understand the position of PGA, John, and Louis.

[Frobby]

By the way, here’s a very rough timeline of the dispute:

April 2012 - RSDC hears the original arbitration.   Following this, MLB makes extensive efforts to get the parties to settle, letting them know the expected outcome but holding off on a written opinion until the settlement talks collapse.

June 2014 - RSDC issues it’s award of $53-66 mm/yr in rights fees  from 2012-16.

July 2014 - MASN/Orioles file court proceedings seeking to overturn award; Nats file proceedings seeking to confirm award.  

November 2015 - Court issues decision overturning award because the Nats’ lawyers also had done work for MLB and certain teams, and orders a new proceeding with new lawyers for the Nats.    Many challenges to the award on other grounds are rejected.   

December 2015 - MASN appeals the lower court’s decision to the Appellate Division.   They refuse to participate in another RSDC arbitration while the appeal is pending.

July 2016 - After several briefs on the subject the lower court refuses to compel MASN to participate in an RSDC proceeding while the appeal is pending.

July 2017 - The Appellate Division essentially affirms the lower court ruling and specified that the new arbitration will take place before the RSDC.    MASN attempts a further appeal to the New York Court of Appeals.

November 2017 - The Court of Appeals holds that MASN had no right to file an appeal because the Appellate Division decision is not a final disposition of the dispute.    MASN responds by asking the Appellate Division for leave to file its appeal, which is an alternative procedure allowing for discretionary appeals to be heard.

January 2018 - The Appellate Division denies leave to appeal, thereby ending MASN’s efforts to avoid going before the RSDC in the second arbitration.

November 2018 -  The RSDC holds a hearing covering both the original 2012-16 period and the 2017-21 period.    No decision rendered yet so far as we know.

April 2019 - The Nats file a new lawsuit relating to MASN’s failure to pay cash flow distributions to them.   This is a separate issue from the rights fees.

So it’s now been 7 years since the original arbitration hearing.   If you want to pin the delay on someone, here’s a breakdown:

RSDC/MLB - waited 2 years and 2 months to issue its initial award, and has had the matter back in its hands for 1 year and 5 months since the last appeal was rejected.   Total time 3 years 7 months.

Lower Court: Took 1 year 4 months to render its decision.    Then, didn’t force MASN back to arbitration while the appeals were pending.

Appellate courts: 1 year 8 months to issue the initial appellate decision, then six months to reject further appeals.     Total of 2 years 1 month.

Plenty of blame to go around, but I’d say it’s mostly been MASN’s tactics.

 

 

 

[MongoBoy]

I'll make a deal with the parties.  If they are willing to pay my tax bill this year, I will not bother even thinking about their situation.  They have til Monday to respond.

[atomic]

28 minutes ago, Frobby said:

By the way, here’s a very rough timeline of the dispute:

April 2012 - RSDC hears the original arbitration.   Following this, MLB makes extensive efforts to get the parties to settle, letting them know the expected outcome but holding off on a written opinion until the settlement talks collapse.

 June 2014 - RSDC issues it’s award of $53-66 mm/yr in rights fees  from 2012-16.

 July 2014 - MASN/Orioles file court proceedings seeking to overturn award; Nats file proceedings seeking to confirm award.  

 November 2015 - Court issues decision overturning award because the Nats’ lawyers also had done work for MLB and certain teams, and orders a new proceeding with new lawyers for the Nats.    Many challenges to the award on other grounds are rejected.   

 December 2015 - MASN appeals the lower court’s decision to the Appellate Division.   They refuse to participate in another RSDC arbitration while the appeal is pending.

July 2016 - After several briefs on the subject the lower court refuses to compel MASN to participate in an RSDC proceeding while the appeal is pending.

 July 2017 - The Appellate Division essentially affirms the lower court ruling and specified that the new arbitration will take place before the RSDC.    MASN attempts a further appeal to the New York Court of Appeals.

 November 2017 - The Court of Appeals holds that MASN had no right to file an appeal because the Appellate Division decision is not a final disposition of the dispute.    MASN responds by asking the Appellate Division for leave to file its appeal, which is an alternative procedure allowing for discretionary appeals to be heard.

 January 2018 - The Appellate Division denies leave to appeal, thereby ending MASN’s efforts to avoid going before the RSDC in the second arbitration.

 December 2018 -  The RSDC holds a hearing covering both the original 2012-16 period and the 2017-21 period.    No decision rendered yet so far as we know.

April 2019 - The Nats file a new lawsuit relating to MASN’s failure to pay cash flow distributions to them.   This is a separate issue from the rights fees.

 So it’s now been 7 years since the original arbitration hearing.   If you want to pin the delay on someone, here’s a breakdown:

 RSDC/MLB - waited 2 years and 2 months to issue its initial award, and has had the matter back in its hands for 1 year and 3 months since the last appeal was rejected.   Total time 3 years 5 months.

 Lower Court: Took 1 year 4 months to render its decision.    Then, didn’t force MASN back to arbitration while the appeals were pending.

 Appellate courts: 1 year 8 months to issue the initial appellate decision, then six months to reject further appeals.     Total of 2 years 1 month.

 Plenty I’d blame to go around, but I’d say it’s mostly been MASN’s tactics.

  

 

 

The estate fight between E. Pierce Marshall and Anna Nicole Smith went on for 18 years. Went to the Supreme court twice and by the time it was finally concluded both parties were long dead.  I think this can go even further than that. Something needs to be done to streamline these processes as it seems that as long as you don't run out of money fighting these fights over money they can run on forever. 

[Frobby]

The Post had an article about the new dispute.    Apparently MASN did not pay a distribution to either the Orioles or the Nats.   A source said MASN held the money instead of paying a dividend “because the cable industry is in flux and affiliate renewal deals are coming up, which meant it was best to keep the cash with the network.”   https://www.google.com/amp/s/www.washingtonpost.com/amphtml/sports/2019/04/10/masn-feud-continues-nationals-orioles-battle-over-new-lawsuit/

[oriolesfan97]

29 minutes ago, Frobby said:

The Post had an article about the new dispute.    Apparently MASN did not pay a distribution to either the Orioles or the Nats.   A source said MASN held the money instead of paying a dividend “because the cable industry is in flux and affiliate renewal deals are coming up, which meant it was best to keep the cash with the network.”   https://www.google.com/amp/s/www.washingtonpost.com/amphtml/sports/2019/04/10/masn-feud-continues-nationals-orioles-battle-over-new-lawsuit/

That quote tells me that MASN could be in serious trouble moving forward with cord cutting and keeping their cable carriage fee as high as possible. I would like to know when exactly MASN carriage deals is coming up with Comcast, FIOS, Cox, DirecTV and Dish Network?

Edited April 10, 2019 by oriolesfan97

[Frobby]

6 minutes ago, oriolesfan97 said:

That quote tells me that MASN could be in serious trouble moving forward with cord cutting and keeping their cable carriage fee as high as possible. I would like to know when exactly MASN carriage deals is coming up with Comcast, FIOS, Cox, DirecTV and Dish Network?

I don’t think that information is public.   

[Ohfan67]

Nuts.

[esmd]

Sounds the O's scored a victory in this latest round of litigation.

The more and more I think about this, the more and more I don't blame the O's one bit.  They gave up their market to another team, that was taking the more valuable part of the market, in exchange for the 90/10 split, which will eventually be 67/33.  The Nationals demanded twice what the rights fees formula called for ($80M vs $40M).  The MLB awarded them $60M.  Seems to me the Nationals' goal (likely backed by MLB) is to cause MASN to go belly up so they can be a 'free agent', so to speak, with their rights fees.  The O's would get screwed royally if that were to happen, and the Nationals, and IMO MLB, would by just fine with that.  Well, too bad.  They made the deal when they came into the Orioles' market. 

[Frobby]

23 minutes ago, esmd said:

Sounds the O's scored a victory in this latest round of litigation.

The more and more I think about this, the more and more I don't blame the O's one bit.  They gave up their market to another team, that was taking the more valuable part of the market, in exchange for the 90/10 split, which will eventually be 67/33.  The Nationals demanded twice what the rights fees formula called for ($80M vs $40M).  The MLB awarded them $60M.  Seems to me the Nationals' goal (likely backed by MLB) is to cause MASN to go belly up so they can be a 'free agent', so to speak, with their rights fees.  The O's would get screwed royally if that were to happen, and the Nationals, and IMO MLB, would by just fine with that.  Well, too bad.  They made the deal when they came into the Orioles' market. 

How do you figure the O’s have won this latest round?    Nothing has happened yet, the Nats have merely filed court papers trying to stop an AAA arbitration that the Orioles/MASN started unilaterally.

As to the previous, still ongoing dispute, you should remember that when the court looked at the RSDC’s reasoning for interpreting the language of the MASN contract the way it did, the court said that reasoning was “reasonable on its face” (or something to that effect).    The only reason it threw out the decision was because of the fact that the Nats’ lawyers had done some other work for MLB.    If the new RSDC came out with that exact same decision (or close), with the Nats now using a different law firm (which they have), the court very likely would uphold that decision by the RSDC, unless MASN can show some new form of shenanigans.   

[hoosiers]

To be clear, the dividend payment in question is really a profit distribution of MASN.  It appears the payments to the teams for their TV rights fees were made by MASN.  The article says those payments increased to about $50M.  That would be an annual  distribution covering the period from 2017-2021.