Jul 29, 2014, 4:58 PM EDT
For years now, the Nationals and Orioles have been at odds over TV revenue. It’s about to explode.
The back story: in order to allow the Nationals to start up business in Orioles territory back in 2005, the Orioles got a sweet TV deal. They got (a) majority ownership of the network, MASN, that broadcasts both Nats and Orioles games; and (b) they got way more in rights fees from the network for their games than the Nats got for theirs. Indeed, the Nats got a pretty undervalued amount, per the deal.
Starting in 2012, that undervalued piece ended and the Nats were to begin receiving rights fees from MASN that represented “fair market value.” They still haven’t received it as MASN — which, again, is controlled by Peter Angelos and the Orioles — has repeatedly balked. To placate the Nationals, Major League Baseball has been kicking back money to the Nats. Bud Selig also set up an arbitration, with a panel made up of other baseball owners and executives to determine what “fair market value” is.
The Hollywood Reporter has a bombshell of a story today in which it notes the following:
- That arbitration panel ruled in favor of the Nationals;
- The Orioles/MASN have still ignored it and haven’t paid;
- The Nationals and Orioles/MASN have each started getting testier with one another via attorney letters;
- Bud Selig wrote both clubs — and Hollywood Reporter has the letter — warning them that if they sue over this they’re in DEEP TROUBLE suggesting that they may have “the most severe sanctions” leveled against them if they do; and
- Both the Nats and Orioles seem to be ignoring Selig and are on a collision course in court.
This is a huge story inasmuch it (a) involves something huge like broadcast rights fees at a time when such fees dictate almost everything about the game; (b) shows that Bud Selig’s greatest strength as Commissioner — keeping the peace among clubs — is failing him in this case; and (c) we have the distinct possibility of club vs. club litigation, which means actual financial and business information in open court and THAT JUST DOESN’T HAPPEN IN MAJOR LEAGUE BASEBALL.
Oh, and those “most severe sanctions” Selig threatened the O’s and Nats with? Those include the sorts of sanctions that cost Frank McCourt ownership of the Dodgers. Of course McCourt was a wounded animal at the time. Would Selig dare try to go after Peter Angelos or the Lerners like that?
A big, big story. Great work by the Hollywood Reporter to get this out there when Major League Baseball’s m.o. is to never air its dirty laundry in public.
UPDATE: The Orioles and Attorneys for MASN just contacted me with official comments on the matter. From the Orioles:
“As those who follow the Clubs are aware, the Settlement Agreement between Baseball, the Orioles, and the Nationals established MASN to compensate the Orioles for the loss of market share and other damages caused by the relocation of the Nationals to Washington, D.C. Contracts are meant to be honored and the Orioles have every expectation that this contract will also be honored. The Orioles continue to work with the Office of the Commissioner to try and resolve this dispute.”
And from Thomas J. Hall, counsel for MASN:
“MASN has honored the terms of the Settlement Agreement, including the formula in that contract for resetting the Nationals’ telecast rights fees and expects all parties will do the same. That contract specifically includes an agreed upon and historically applied formula for resetting the Clubs’ telecast rights fees that has been applied by Baseball to virtually every other club-owned regional sports network. MASN is confident its contract will be honored and looks forward to further discussions with all parties to try and resolve this matter amicably. Our loyal viewers should understand this is a business dispute and will have no impact on the telecast of the Clubs’ games.”
Note the complete lack of reference to the arbitration Selig put together? Did the Orioles not participate in it, or are they just refusing to acknowledge its legitimacy now that it has resulted in a decision they don’t like?
One thing I do know: Peter Angelos is, more than anything, an able lawyer. And if he’s not running the show himself, he has people in place that are running it the way he’d like it to be run, and he has never feared going to court. Meanwhile, the Lerners did not get rich by being walked-over rubes. They are as litigious and determined as the next high-powered businessman, and likely more so.
Buckle your safety belts.
Aug 30, 2015, 11:55 PM EDT
Giancarlo Stanton is getting close to returning to the Marlins. He’s slated to begin a rehab stint on Tuesday.
Aug 30, 2015, 11:31 PM EDT
Jake Arrieta struck out Chase Utley to complete his first career no-hitter.
Aug 30, 2015, 11:14 PM EDT
Jake Arrieta made history on Sunday night, tossing a no-hitter against the Dodgers.
Aug 30, 2015, 11:05 PM EDT
Aaron Harang wasn’t claimed when the Phillies put him on waivers, so any team can try and negotiate a trade if they’re desperate for rotation help.
Aug 30, 2015, 10:15 PM EDT
The Padres got Chris Rearick back, claiming him off waivers from the Rangers on Sunday.
Aug 30, 2015, 9:51 PM EDT
The Blue Jays are expected to name Mark Shapiro as the new team president.
Aug 30, 2015, 9:25 PM EDT
The Braves were demolished by the Yankees on Sunday.
Aug 30, 2015, 8:35 PM EDT
Tim Lincecum may have thrown his last pitch as a member of the Giants after suffering another setback in his recovery from hip and back injuries.
Aug 30, 2015, 7:45 PM EDT
David Ortiz has sole possession of 27th place on baseball’s all-time home run leaderboard.
Aug 30, 2015, 6:55 PM EDT
The Phillies added bullpen depth on Sunday, claiming Ken Roberts off waivers from the Rockies.
Aug 30, 2015, 6:05 PM EDT
Curtis Granderson was prompted to say something controversial, so he did.
Aug 30, 2015, 5:22 PM EDT
The 27-year-old missed most of July with an oblique strain and most of June with a trapezius strain.
Aug 30, 2015, 4:15 PM EDT
Royals right-hander Jeremy Guthrie is doing some fine side work in his new long relief role …
Aug 30, 2015, 3:28 PM EDT
Josh Hamilton is likely to be activated off the disabled list Tuesday, September 1 when major league rosters expand, but it sounds like he’s going to be limited to pinch-hitting duties for a while.
Aug 30, 2015, 2:34 PM EDT
Machi owns a rough 5.21 ERA in 46 2/3 total innings this season between San Francisco and Boston, but the out-of-contention Red Sox will simply roll with what’s currently working as they play out the string.
Aug 30, 2015, 1:47 PM EDT
Josh Donaldson got Sunday Funday started early in Toronto with this first-inning solo blast …
Aug 30, 2015, 1:20 PM EDT
A.J. Burnett has been out since late July with a strained flexor tendon in his right arm. There was some thought initially that the injury would be a season-ender (and thus career-ender) for the 38-year-old, but he’s beginning to make significant progress.
Aug 30, 2015, 12:43 PM EDT
Data really is beautiful.
Aug 30, 2015, 11:59 AM EDT
This is probably a case of the ‘Stros playing it safe with a young star. They do have a four-game lead in the American League West standings and Correa has been pushed hard over the last three months.
Aug 30, 2015, 11:01 AM EDT
Cardinals right-hander Lance Lynn rolled his right ankle in the eighth inning of a shutout bid Saturday against the Giants and had to be pulled from the game, but it sounds like he is going to be fine.
- Video: Jake Arrieta strikes out Chase Utley to complete his no-hitter 3
- Jake Arrieta no-hits the Dodgers with 12 strikeouts 19
- Blue Jays will name Mark Shapiro as the new team president 9
- Lance Lynn expects to make next scheduled start despite suffering ankle injury Saturday 2
- Cubs expected to call up Javier Baez on September 1 6
- Settling the Score: Saturday’s results 13
- A fan died at Turner Field after falling from the upper deck 55
- Mets acquire Addison Reed from the Diamondbacks 10
- Sarah Palin sticks up for Curt Schilling, tells ESPN to “stick to sports” (266)
- Dan Patrick: When does ESPN cut ties with Curt Schilling? (200)
- Curt Schilling taken off of Little League World Series duty for making a really bad tweet (170)
- Curt Schilling taken off of ESPN’s Sunday Night Baseball telecast this week (134)
- Phillies announcer calls Mets fans “obnoxious” (123)