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 4, 2015, 8:02 AM EDT
A.J. Pierzynski is a national freakin’ treasure.
Aug 4, 2015, 7:22 AM EDT
A few weeks ago I had no idea what an Adonis Garcia even was.
Aug 3, 2015, 11:01 PM EDT
Rangers third baseman Adrian Beltre hit for the cycle tonight against the Astros. And he needed just five innings to do it.
Aug 3, 2015, 10:25 PM EDT
It’s August 3 and the Mets are all alone in first place in the National League East.
Aug 3, 2015, 10:03 PM EDT
Mike Hessman is the new minor league home run king.
Aug 3, 2015, 9:36 PM EDT
Nationals right-hander Stephen Strasburg has been sidelined since July 4 with a left oblique strain, but it sounds like he’s rounding into form for the stretch run.
Aug 3, 2015, 9:13 PM EDT
The Braves are calling him day-to-day, but these type of injuries are notoriously tricky.
Aug 3, 2015, 9:01 PM EDT
Clayton Richard tossed six innings of one-run ball in a win over the Padres on Sunday, but he was designated for assignment by the Cubs today for the second time in the past two weeks.
Aug 3, 2015, 8:19 PM EDT
Matz impressed over his first two starts in the majors before going down with a partial tear of his lat muscle, but he’s starting to ramp things up in preparation for his return.
Aug 3, 2015, 7:32 PM EDT
Kipnis is expected to miss two to three weeks.
Aug 3, 2015, 6:58 PM EDT
Cubs rookie third baseman Kris Bryant was forced to exit Sunday’s game against the Brewers after feeling dizzy on a hard slide into second base, but he’s back in the starting lineup for tonight’s series opener against the Pirates.
Aug 3, 2015, 6:01 PM EDT
Capps has quietly been one of the game’s most dominant relievers this season.
Aug 3, 2015, 5:19 PM EDT
Out since late May with a neck injury.
Aug 3, 2015, 5:14 PM EDT
Stop me if you’ve heard this one before.
Aug 3, 2015, 4:27 PM EDT
He is now calling Jose Bautista “a good man and a great human being.”
Aug 3, 2015, 4:00 PM EDT
The newest Blue Jay struck out 11 in eight innings of work.
Aug 3, 2015, 3:45 PM EDT
Panik’s breakout season has been put on hold.
Aug 3, 2015, 3:06 PM EDT
Dating back to 2013 he’s hit .337 with a .900 OPS off lefties.
Aug 3, 2015, 2:53 PM EDT
Power-hitting third baseman/first baseman.
Aug 3, 2015, 2:43 PM EDT
It’s not necessarily likely, but since it isn’t a torn UCL there’s at least a chance he could make it back.
- And That Happened: Monday’s scores and highlights 10
- Adrian Beltre needs just five innings for the third cycle of his career 8
- Mets blow out Marlins, move past Nationals for first place in NL East 17
- Yordano Ventura calls Jose Bautista a “nobody” and accuses him of stealing signs 72
- And That Happened: Sunday’s scores and highlights 87
- The benches cleared in Toronto, too 79
- The Reds’ and Pirates’ benches cleared after Brandon Phillips was hit with a pitch 65
- Reminder: even though the trade deadline has passed, trades can still happen 13
- The benches cleared in Friday’s Giants-Rangers game (205)
- Blue Jays acquire David Price from the Tigers (113)
- Rangers land ace left-hander Cole Hamels from Phillies (106)
- Royals make another big move, get Ben Zobrist from A’s (95)
- Report: Rockies trade Troy Tulowitzki to Blue Jays for Jose Reyes and prospects (92)