I keep telling you guys over and over and over that MASN isn't this huge cash cow everyone thinks it is. Both the Orioles and Nationals ratings are some of the lowest viewership in all of baseball, the Tampa Rays have more tv viewers then both teams combined.
And the contract stipulates that every 5 years the rights fees paid annually to the Nats will be adjusted to reflect "fair market value".
If the Nats and MASN can't agree on $$$, it goes to arbitration. Which it has.
MASN will argue that no one watches the Nats.
The Nats will argue that's irrelevant, since MASN generates the lion's share of its revenue via monthly access fees per subscriber. And that "fair market value" is what the Nats could get from other RSNs if they were free to sell their rights to the highest bidder.
And here's an example of MASN / Angelos failing to capitalize on more market territory, thus more subscriber and advertising revenue...
"...the Federal Communications Commission reversed, finding that Time Warner Cable made its decision on the basis of legitimate business considerations, including the lack of interest in Orioles and Nationals baseball in North Carolina and the high cost of carrying the network..."
Instead of making it a more attractive business proposition to potential partners, widening the audience, and improving the product... which would likely lead to more interest, more viewers, and more ad revenue... they continue to squabble (and lose) about up front dollars while ignoring the bigger picture. It's all about everybody else adhering to his terms, all the time.
And there used to be quite a bit of interest in Orioles baseball in the Carolinas. That's of course faded over the last 20+ years for obvious reasons.
in other words, every customer in the Mid-Atlantic region pays an extra $2.00/month for MASN. and they pay that fee even if they never watch a minute of programming. that $2.00 goes straight to MASN, the service providers don't take any of it.
add up how many households have D-tv or Comcast. then multiply that by 2. That's how much revenue streams in each month (not each month of the season. but rather, 12 months a year)
then add the advertising $$$ on top of that, and you should begin to get the picture of how much revenue is being generated by the network.
do you still think it's not a cash cow?
MASN's coverage / markets...
Census info re: Maryland
Census info re: Virginia
Completely ignoring parts of PA, WV, DE, and NC... there are about 5 million "households" in the MD / VA area. I've seen estimates as high as 90% for the percentage of households that pay for some form of cable / satellite TV.
For the purpose of being conservative, let's consider that estimate grossly over-inflated... do you think at least 50% of households pay for something more than rabbit ears? So you're looking at a minimum of 2.5 million subscribers in the MD / VA region that pay a fee to MASN every month... regardless of how much they watch the channel(s). Fees go down as you move away from the base market, so come up with a number less than $2 if you'd like to account for averaging. Monthly means you multiply by 12 for annual gross revenue.
Now consider that if the 90% figure is more accurate, you're looking at 4.5 million subscibers in just MD / VA... at 12 payments per year. That's 54 million "iterations" of subsciber payments.
Then throw in the outlying areas I've ignored. Then throw in likely modest contributions from satellite carriers. Then throw in whatever advertising dollars they ARE pulling in at present... even with low ratings. Then consider that MD and VA both rate well above the national average for income (which translates in to a wealthy market, and more advertising potential).
It's either a cash cow just like Peter Angelos predicted it would be (helping them improve the Orioles on the field)... or they're mismanaging it terribly and wasting gobs and gobs of untapped resources.
Last edited by Ravens2006; 05-29-2012 at 10:07 AM.
It's June 8th... what's the story here?
here's the marketing pitch from MASN...http://www.masnsports.com/microsites...ates/print.pdf
according to the sainted owner when asked in a friendly interview stated the following:
Does that job get somewhat more manageable with the MASN dollars?
Well, I don't like to lose…That's not my game. And then a team was introduced into D.C. along with the disparities I am talking about (with the Yankees it's even greater). [The Yankees and Red Sox are] the two teams of the five in the AL East who are generating the enormous streams of revenue with which Toronto, Tampa Bay and the Orioles have had to deal with for these last seven, eight, nine years. I would really say the past seven years or so we have been, along with the other two teams, at the bottom of the totem pole with New York and Boston at the top…both of which have RSN's (Regional Sports Networks) like we just managed to accomplish, and have had them for years. So, their revenues have been so substantial by comparison to Toronto, Tampa Bay and the Orioles.
In answer to your question, now that we have an RSN and we can move forward with it…that is going get us on a more even plane with Boston and New York, and that was the purpose.
this story is always a classic and a handy way to dispel any misguided thoughts that the owner has an credibility....
now in regards to MASN-- it's terribly mismanaged, which is a hallmark of angelo$er enterprises..it also bears another hallmark of angelo$er enterprises...run it on a shoestring and line the owners pockets...
he alienated the ravens and their fans, he tried to bully time warner, that failed....angelo$er is a parasite who, when confronted with situations he cannot manipulate, folds like a cheap tent.....
Well, when a team was introduced to DC, there had merely been a respite from that reality.Originally Posted by little Greek inferiority complex midget
Did you actualy think, Mr Angelos, that MLB would forsake DC in favor of Charm City forever ?
Did you actually think that your claim to the DC market (which is bigger than that of your native Pittsbugh and Baltimore combined) would last forever ?
Squatters don't last...
Mister Angelos" Sports Network is much like Mister Angelos' Baseball Team..irrelevant but still sucking money out of people any way....before I moved out of the area, I was getting gouged 2.25 a month by the cable provider in Hanover for very little live sports and lots of ESPN News...which I had already.....
The usual suspects will make a snarky remark about the source... but worth a read, and asks a lot of questions that other media types in the market never bother to ask... not that anybody with the club would bother to answer.
AJ's contract (and the timing of that contract) have me thinking that something is afoot at MASN. I'd be shocked if Angelos is allowed to pay the Nats $35M. the recent RSN contracts signed around the league project the Nats to be worth way more than that figure. somethings can't be swept under the carpet.
I said it after the Jones deal was announced... I'm quite suspicious that the "new direction" we hope that deal indicates that ownership is willing to go in, was really a matter of making a popular P.R. move in the weeks ahead of a virtually mandated increase in player investment.
If they (MASN) are pulling in $168 million a year from Comcast alone... I think it's more than fair to be harshly critical of the $29 million figure being given to the Orioles organization. Even if that figure is a bit high AND includes all of the other sources too (FIOS, satellite, advertising, etc... I think the amount of reinvestment sent to the Orioles deserves much more criticism than it's gotten locally. As pointed out, Peter Angelos went on record in 2006 confirming "that was the purpose" of MASN.
the guy gives plenty of ammo to blast him with. there's no need to exaggerate his destruction of the O's, the hard facts are damning enough.
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