The Nationals and Orioles dispute over TV money is about to explode

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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.

And That Happened: Tuesday’s Scores and Highlights

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Here are the scores. Here are the highlights:

Angels 8, Astros 7: Charlie Morton and Shohei Ohtani have been two of the most talked about pitchers to start the season and they faced off in this one. Not too stellar a faceoff, unfortunately, as Mike Trout homered off of the first pitch Morton threw him and Andrelton Simmons followed him in the act. The Angels would score two more off of him in the third and he wouldn’t last four. Meanwhile, Ohtani gave up four runs, including a homer to Derek Fisher and would see another run for which he was responsible score on a Brian McCann go-ahead blast. His night would end having given up four runs as well. Anaheim tied it back up on an Albert Pujols single and then Simmons would hit his second homer of the night — a three-run shot — to give the Angels a lead they would not surrender. Fun fact: Mike Scioscia ran out of mound visits in this one. Unless I missed one, he was the first manager to do so in a game since the mound visit rule was established.

Cubs 10, Indians 3🎶Kyle Schwarber came back to Ohio . . . and his city was gone . . . but the guy who wrote about it . . . was a Republican pawn . . . A, oh, way to go O-hi-o . . .🎶 Two homers for the best thing to come out of Middletown, Ohio over the past decade or so. A homer each for Willson Contreras and Ian Happ. Same result as Game 7 in 2016. Pretty much the same weather too. Unfit for man or beast or Josh Tomlin

Yankees 8, Twins 3: Gary Sanchez hit two homers and Aaron Judge and Didi Gregorius each went deep as well, with Sanchez and Gregorius each driving in three. Didi has been having such a fantastic year that, eventually, I’m assuming the people who run the ads at Yankee Stadium will spell his name right:

Mets 6, Cardinals 5: Jay Bruce‘s tenth inning homer gave the Mets a lead they’d hold on to for the win. Yoenis Cespedes hit a homer earlier that I’m pretty sure killed (a) a baseball; and (b) Luke Weaver:

463 feet, my man.

In other news, Matt Harvey entered in the top of the fifth inning of this one for his first relief appearance since his demotion to the pen. It didn’t go great. He gave up a run on back-to-back two-out doubles and left after throwing 35 pitches, only 20 of which were strikes. In still other news, the Cardinals initiated a replay challenge after Bruce’s homer, claiming he missed first base. He didn’t miss first base and it wasn’t even particularly close, so I have no idea what the Cardinals were doing there. La Russa may be gone but part of his essence still lingers, I suppose.

Rockies 8, Padres 0: Eight runs in Colorado — seven of them coming in the first two innings — isn’t news, but seven shutout innings from a starting pitcher is. That’s what Kyle Freeland did for the Rockies, striking out eight and grabbing the win. Trevor Story hit a grand slam. There was a scary moment when Freeland was hit by a comebacker, but he stayed in the game. Rockies manager Bud Black said it may have helped: “It smoothed him out. He didn’t overthrow. His focus might have been more heightened, because he was in a little bit of discomfort.” Sources say that Black plans to kick Freeland square in the beans just before he takes the mound for his next start on Sunday.

Giants 4, Nationals 3: Mac Williamson hit his second big homer in as many nights and once again helped the Giants to a win, with his sixth inning solo shot putting San Francisco up for good. The Giants other three runs came via a Brandon Belt two-run homer and a first inning wild pitch from Tanner Roark. Williamson credited the adrenalin from running into a wall the previous half inning for his homer. In light of that, sources say that Bruce Bochy plans to kick Williamson square in the beans just before his first at bat in his next game this afternoon.

Mariners 1, White Sox 0: Marco Gonzales (6 IP, 5 H, 1 BB, 8K) and four M’s relievers combine for a five-hit shutout and Mitch Haniger‘s RBI single in the fourth was all the scoring. Chris Volstad got the start for the White Sox. He did pretty good considering, you know, he isn’t really a starter. The White Sox are off to their worst start in 68 years. I wonder how they’d be doing if they, you know, tried.

Reds 9, Braves 7: Cincy took a 5-0 lead behind some dominant pitching from Tyler Mahle, no-hitting the Braves until the seventh inning, but the Braves finally figured him out and crushed the first couple of relievers who followed him, eventually tying things up with four runs in the ninth. Scooter Gennett put an end to Atlanta’s comeback-win delusions, however, launching a two-run walkoff homer in the 12th. That was Gennett’s second homer of the night and his third and fourth RBI. Freddie Freeman went deep twice for Atlanta, both solo shots.

Diamondbacks 8, Phillies 4: Alex Avila went deep and had three hits and Daniel Descalso and Jarrod Dyson also homered. Dbacks starter Robbie Ray struck out 11 Philly batters but couldn’t escape the fifth inning. I imagine Philly fans either didn’t care or didn’t notice since the Sixers were playing. This is a good time of year for baseball teams in hockey and basketball towns to fly under the radar for a bit.

Blue Jays 4, Red Sox 3: Curtis Granderson threw out the potential go-ahead run at the plate in the top of the ninth inning and then hit a walk-off homer in the 10th — off of Craig Kimbrel no less — to give the Jays the win in the team’s first game since Monday’s deadly terrorist attack killed ten in the city. The Sox lose their third straight game and suffer their first loss to the Jays in Rogers Centre in their last eight meetups.

Athletics 3, Rangers 2: Andrew Triggs allowed only one run over six innings while scattering for hits and punching out six. Mark Canha homered and Jed Lowrie and Matt Olson each doubled in a run to help Oakland to their fourth straight win. Worse news for Texas than the loss was Adrian Beltre straining his left hamstring. No battle plan survives first contact with the enemy, but it’s kind of ridiculous that, 25 games into the season, three of the club’s four Opening Day infielders are hurt and the fourth one is playing left field.

Brewers 5, Royals 2: Lorenzo Cain homered against his old team, but that was just late gravy. Earlier Travis Shaw hit a three-run shot that put the game away in the third inning. Sal Perez made his first appearance of 2018 after coming off the disabled list and hit a solo shot. Zach Davies picked up the win after allowing two over six.

Marlins 3, Dodgers 2: L.A. took a 2-1 lead into the eighth but Starlin Castro doubled in the tying run that inning and Cameron Maybin doubled in the go-ahead run in the ninth. The Fish snap their five-game losing streak.

Rays vs. Orioles; Tigers vs. Pirates — POSTPONED: The 27th and 28th rainouts of the year so far. So it seems appropriate . . .

28 days of rain
Flash floods in February
Back in our boats again
Bath water and the baby
What am I gonna do?
There’s been a lot of drinking
Looking at ghosts of you
While all the world is sinking

10.000 miles into the atmosphere
My body shakes
Is there a welcome here?

Closest thing to heaven
How do you do it?
Closest thing to heaven, heaven