Uh-Oh

[weird-O]

It looks like Petah boy is about to lose lots-O-money to the Nats.

http://www.baltimoresun.com/sports/b...,6430943.story

And wouldn't you know it, the Orioles' idea of market rates differed from the Nationals' idea. Up til now, the Nats have received just $29 million per season.

Rosenthal writes about a few pertinent comparables, which you have to think will be used by MLB to set the rate:

Washington D.C. is the ninth largest television market, according to Nielsen. The San Diego Padres, who play in the 28th-ranked market, recently completed a deal with FOX Sports San Diego that will pay them a $200 million upfront bonus and $50 million annually for 20 years.

The Texas Rangers, who play in the fifth-ranked market, will receive $150 million per year under a 20-year extension with FOX Sports Southwest, according to USA Today. That deal begins in 2015.

HOLY SCHNIKEES!!!!

He's been giving them Cherry Hill money, but the Nats are about to move up to Roland Park money.

I did some math. if this negotiation followed simple algorithms (which it won't because Pete knows how to fight), here's what I came up with.

28th market -------16th-17th markets--------10th market--------9th - DC-------5th market
$50M-----------------$100M-------------------$125M-----------$130M-----------$150


He would go from paying $29M/yr to paying $130M/yr.

if Petey can't afford to compete with his current MASN profits.....do I need to finish that sentence?

The Furure Is Bright!!!!

[AntiMoon]

You mistake can't afford with unwilling. According to Forbes, WNST and others, Pete currently generates 140-150 mil a year from MASN with 29 mil going to Nats and 5-10 mil being used for MASN employees,etc. That means he clears about 100 mil a year from MASN alone not mention he's gotten money the last 3 or 4 years from the big market teams like the Yankees and Boston in revenue sharing

[weird-O]

You mistake can't afford with unwilling. According to Forbes, WNST and others, Pete currently generates 140-150 mil a year from MASN with 29 mil going to Nats and 5-10 mil being used for MASN employees,etc. That means he clears about 100 mil a year from MASN alone not mention he's gotten money the last 3 or 4 years from the big market teams like the Yankees and Boston in revenue sharing

here's a question that came to my mind. it's totally hypothetical, but I'd be interested to hear some thoughts.

if fair market value for Nats TV rights is determined to be $130M/yr, and Pete goes to Bud and says, "I don't make that much money" would the Lerner's have the right to back out of the MASN agreement and seek another contract with Comcast or whoever is willing to offer them FMV?

BTW- when I said "can't afford" that was sarcasm. I'm pretty sure he can afford to compete.

[ajc54terp]

here's a question that came to my mind. it's totally hypothetical, but I'd be interested to hear some thoughts.

if fair market value for Nats TV rights is determined to be $130M/yr, and Pete goes to Bud and says, "I don't make that much money" would the Lerner's have the right to back out of the MASN agreement and seek another contract with Comcast or whoever is willing to offer them FMV?

BTW- when I said "can't afford" that was sarcasm. I'm pretty sure he can afford to compete.

I know we were talking about this on the other thread, i can't provide a link, but I remember hearing on the radio, that the nats profits would go from 29 mill to the 60's range

[AntiMoon]

That's been the prediction from people in DC like Boswell ajc54. On the positive side it may force Angelos to put a winner on the field because MASN could generate SO much more money with a quality product. He's generating all this money off it in spite of nobody buying advertising. If he had a consistent good team he could double his MASN revenue IMO.

[ajc54terp]

Yeah, I believe he got fat and happy, and as devoute as the O's fans are, he has taken them for granted, and if there's competition for his fan base, maybe he will get off his arse and actually try to put a superior product on the field like he did when he first bought the team.

[can you hear me now!]

The Lerner's a savvy enought to say "show me your books, partner". Little Petey has painted himself into a corner from which he cannot escape since the Nationals are part owners of MASN. The Nationals would be correct in complaining that they are not receiving fair market value and would probably need to go to court to extract themselves out of the agreement with MASN. THe suits at COMCAST must be licking their chops at the thought of possibly landing the Nats. COMCAST is building its realtionship with the Ravens and an on the rise Nats team would be a great boost to their standing.

Of course, the wOes will be harmed because greedy pete will recoup most of his losses by reducing payroll to the bare minimum...

Get out the popcorn....

[weird-O]

I know we were talking about this on the other thread, i can't provide a link, but I remember hearing on the radio, that the nats profits would go from 29 mill to the 60's range

if that ends up being the case, I will be very interested to see how they came to that figure. who would accept $60M when the system you operate in dictates you should be getting over $100M.

I accept that there are details and factors in play that I'm not aware of. but that's roughly half of what the current contracts suggest the Nats could get.

[weird-O]

Of course, the wOes will be harmed because greedy pete will recoup most of his losses by reducing payroll to the bare minimum...

Get out the popcorn....

how much worse can it get. there's no such thing as last-er or last-est place. it's times like these when we start looking at hard numbers, and the hard numbers show that the O's have the means to compete. they just don't choose to. no one will ever convince me that a team that spent mid-$90M in payroll in the 1990's can't afford taht same amount of money now. and that doesn't even account for the masn money.

this owner isn't going to spend more money no matter what, so let it go to a team who will.

good for you Nats fans.

[AntiMoon]

Just goes to show how Petey has ruined this franchise for future owners. If the O's didn't stop winning and drawing 3 mil a year Mtl wouldn't have been allowed to move to DC. Now there will always be a Cap on what revenue the O's can generate. Before they had Southern PA to South Carolina to themselves. Now it's southern PA and Hagerstown to Ocean City.

[kudzu]

You mistake can't afford with unwilling. According to Forbes, WNST and others, Pete currently generates 140-150 mil a year from MASN with 29 mil going to Nats and 5-10 mil being used for MASN employees,etc. That means he clears about 100 mil a year from MASN alone not mention he's gotten money the last 3 or 4 years from the big market teams like the Yankees and Boston in revenue sharing

Don't forget about the $29 mill he's paying the O's. Since the Orioles and MASN are seperate entities, MASN has to cut them a check, too.

That still leaves MASN (Petey) $80-90 mill left over each year. Which he could have (and SHOULD have) been paying to both teams to let them be more competitive in their divisions and leagues.

That was Petey's whole justification for the creation of MASN in the first place. But apparently even the O's haven't seen a penny of the proceeds besides their relatively paltry $29 mill rights fee.

[kudzu]

I accept that there are details and factors in play that I'm not aware of. but that's roughly half of what the current contracts suggest the Nats could get.

At this reset point, MASN has to pay the Nats "fair market value" annually for their tv rights. If the Nats and MASN can't agree, the matter goes before an arb panel (appointed by Bud) who would hear both sides and settle it.

MASN will argue that only 3 people watch the Nats on tv (It's true, me and two others) so the Nats should maybe even get a "Guthrie raise" from MASN.

The Nats will argue that "fair market" is what they could get on the open market. Just like a free agent player.