I don't necessarily get how they can seek a buyer for both of the team's rights unless Angelo's decides to sell them...
Maybe I'm not reading it closely enough, whatever
The MASN deal is an anachronism. In 2005 everyone viewed the YES Network as the model television deal. The value of television rights have skyrocketed since then, even the Yankees recently sold 49% of YES to Fox Sports. The combined Washington-Baltimore market is huge, and massively valuable. Having two teams in one large market makes this area very desirable for broadcasters. TV rights here are probably a multi-billion dollar property. If he sells MASN, along with the TV rights to the Orioles, Angelos stands to make a massive profit, more than he could ever hope for if he kept the network. The Nationals would then be free to sign with whomever bought MASN, now for fair market value.
MLB potentially could force Angelos to sell, claiming the deal is in the best interest of baseball. In today's post, Thomas Boswell said that is unlikely though. Baseball would be too afraid Angelos would sue. Considering the money involved in baseball TV deals, I am willing to bet he will take the money.
I'm well aware of the money involved. A local station here likes to remind listeners how much Angelo's earns in a year from it, subtracts what the payroll is of the team that season and then you get a rough idea of how much he gets to pocket from it.
This whole issue is precisely because of how the Baltimore-Washington market is counted as one. Angelo's blackmailed MLB in a way, and because MLB insisted on having a team in Washington again, they caved into what he wanted. Whether he'll sell or it, I would think he would, but the guy isn't available for interviews so he's sort of an enigma these days. I was just confused about how the idea would even come up unless he had an interest in selling the broadcast rights in the first place.
Assuming the offer is as high as I think it will be, the only reason not to sell is out of spite, the Al Davis method. Even down here we know that unlike most owners, Angelos relies on the Orioles for personal income.
While I don't like the deal, I can't really say Angelos blackmailed baseball. He was within his rights and should have received some form of compensation. MLB did infringe on his territory. Handing him the TV rights to the Nationals was incredibly shortsighted though. Considering the size of the market, it was bound to be a bad situation. That the Nationals have two of the three biggest young stars in baseball only makes the situation worse. Unless there is some sort of change they are left with a big market team stuck with one of the lowest value TV contracts in the sport.
There was rumblings that Angelos knew of some sort of shady activity MLB would implement in strong-arming local governments when getting municipal funding for new stadiums. At least I read something similar to this on a few occasions. His reputation as a lawyer helped as well, and his law firm is another source of income. I doubt the Orioles and MASN are his sole course of income, but aside from his firm I don't know specifics.
LOL, what a pigfuck. I don't necessarily mind how MASN is set up, even though you're forced to pay extra money for it if you have cable/satellite/fios, with no way to opt out of it. If the revenue issue was fixed, and Angelos paid out the same amount to both teams every year, it would be ideal.
Pigfuck is about the right word. The whole situation is a gigantic mess, and hopefully resolved by the start of the season. Securing public financing for Nationals Park was clearly the top priority when the league was negotiating to move the team here.
He'd only be losing money if he increased the Nationals stake to something approaching market value. That's probably why baseball arranged for Allen & Co. to look to negotiate a sale. Any solution that's fair to the Nationals would hurt the Orioles, seeking a new broadcast partner would benefit both teams. The feeling I got was that the set up for the new sports network would be the same as MASN, only with new owners.
Last edited by Kaiten; December 14, 2012 at 10:12 PM.
My understanding is that it would be a package deal. A national sports broadcaster would purchase MASN, along with the rights to broadcast Orioles and Nationals games. MASN's value is higher if the new network is able to negotiate with both teams. It would not be a revenue split, each team would negotiate separate contracts as part of the sale.
The Orioles should do pretty well in any deal. Because of the merged market, they can claim a significantly larger footprint than similar size markets. The Nationals would be poised for obscene money, comparable to the Rangers deal. That might ultimately force Angelos to sell. The mediators may have already assessed the Nationals TV rights at between $90 - $100 million a year (they are seeking between $100 - $120) million. MLB may be trying to facilitate a sale, as an alternative to paying market value, which MASN can not afford.
I was being sarcastic. The obscene amount of money Angelos has already pocketed has barely gone to anything in the way of Free Agents. When MASN was in it's infancy he was saying how it would allow us to compete with the Yankees and Red Sox, and that was only done last season and not through conventional, AL East means.