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.
May 28, 2015, 7:28 AM EDT
Noah Syndergaard did it all.
May 27, 2015, 11:27 PM EDT
Reds ace Johnny Cueto was scratched from a start last week after experiencing stiffness in his right elbow, but an MRI taken Tuesday afternoon came up clean …
May 27, 2015, 10:14 PM EDT
Harper has slugged 13 home runs over his last 19 games.
May 27, 2015, 9:01 PM EDT
Cardinals first baseman Matt Adams tore his right quadriceps muscle Tuesday while legging out a double.
May 27, 2015, 8:23 PM EDT
Santos had registered an underwhelming 4.73 ERA, 1.50 WHIP, and 15/7 K/BB ratio in 13 1/3 innings of relief this season for the Dodgers.
May 27, 2015, 7:18 PM EDT
Just call him Jimmy “The Jet” Paredes.
May 27, 2015, 6:25 PM EDT
Peguero was designated for assignment by the Rangers on May 20 after batting .186/.310/.414 with four home runs and nine RBI in 84 plate appearances.
May 27, 2015, 5:19 PM EDT
Adams was off to a slow start this season, but he’s hit .277 with a .770 OPS in 320 games for the Cardinals since debuting in 2012.
May 27, 2015, 5:09 PM EDT
Everything ends badly. Otherwise it wouldn’t end.
May 27, 2015, 4:34 PM EDT
A bad season for the A’s is starting to look worse.
May 27, 2015, 4:19 PM EDT
The incident is alleged to have occurred this past weekend.
May 27, 2015, 4:01 PM EDT
Crazy things are happening in Minnesota.
Felix Hernandez and Chris Archer dueled. Chris Archer, by one measure, pitched better. Felix Hernandez won.
May 27, 2015, 3:36 PM EDT
Game scores are interesting things. Wins — the team kind, anyway — are far more satisfying.
May 27, 2015, 2:30 PM EDT
And Missouri continues to represent well.
May 27, 2015, 2:18 PM EDT
De Aza played very well for the Orioles down the stretch last season.
May 27, 2015, 1:49 PM EDT
Verlander will start Sunday at Triple-A.
May 27, 2015, 12:50 PM EDT
Several reports last week had the Angels in the market for outfield help.
May 27, 2015, 12:36 PM EDT
“A multimedia show featuring a virtual Selig.” Yes, that’s actually a thing.
May 27, 2015, 11:50 AM EDT
He’s about 11 months removed from Tommy John surgery.
May 27, 2015, 11:19 AM EDT
Coke signed a one-year, $2.25 million deal with the Cubs this offseason.
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- Cardinals GM John Mozeliak: Matt Adams out 3-4 months, possibly the year, with torn quad 33
- Bryce Harper leads in the first round of National League All-Star voting 28
- Buster Olney: The Marlins should hire A-Rod to be their next manager 45
- Breaking down the Braves-Dodgers trade 19
- And That Happened: Tuesday’s scores and highlights 34
- So that Juan Uribe trade to the Braves is back on … 11
- Ruben Amaro apologizes for comments about fans, admits he may have been late on rebuild 24
- And That Happened: Wednesday’s scores and highlights (133)
- And That Happened: Thursday’s scores and highlights (96)
- Ichiro Suzuki passes Babe Ruth on the all-time hits list (76)
- And That Happened: Monday’s scores and highlights (71)
- Ruben Amaro dismisses fans who “bitch and complain” about the Phillies’ moves (71)