MLB Commissioner Bud Selig speaks during a news conference in New York

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.

Evan Gattis undergoes surgery for hernia; recovery is 4-6 weeks

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Evan Drellich of the Houston Chronicle shares the bad news

One of the Astros’ big bats won’t be taking hacks when the Astros hold their first full workout on Feb. 23.

Astros designated hitter Evan Gattis recently underwent surgery to repair a hernia, the Chronicle has learned, taking away most of his spring training at a minimum. The recovery is four to six weeks but fortunately for Gattis and the Astros, the injury is not considered severe.

Gattis was working hard on his overall conditioning this winter, even telling MLB.com’s Brian McTaggart in late January that he had already dropped 18 pounds. It sounds like the big slugger might have gone a bit overboard with those workouts, and now he is in real danger of missing the first couple weeks of the 2016 regular season.

Gattis batted .246/.285/.463 with 27 home runs and 88 RBI in 153 games last season for the Astros. The 29-year-old is arbitration-eligible for the first time in his career and has a hearing with the Astros scheduled for February 16 to determine his salary for 2016. He requested $3.8 million and was offered $3 million when figures were exchanged a little over three weeks ago.

Suddenly the Astros’ front office might have a new talking point for those arbitrators.

Seung-Hwan Oh finally receives his work visa, will be on time for Cardinals camp

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At last check, new Cardinals reliever Seung-Hwan Oh was still awaiting a work visa from the United States Embassy in South Korea and there was some worry that he might not be able to arrive on time to spring training in Jupiter, Florida.

But that is now officially a non-story.

Derrick Goold of the St. Louis Post-Dispatch reports that Oh has recieved his work visa and is expected to report to Cardinals camp next week along with the rest of the club’s pitchers and catchers. Oh might even show up a bit earlier than the Cardinals originally asked him to, per Goold.

Oh saved 357 games in 11 seasons between Japan’s Nippon Professional Baseball and the Korea Baseball Organization before inking a one-year contract with St. Louis this winter. He also registered a stellar 1.81 ERA and 772 strikeouts across 646 total innings in Asia, earning the nickname “The Final Boss.”

Oh is expected to work in a setup role this year for Cardinals closer Trevor Rosenthal.

John Lamb had back surgery in December, will likely get off to late start in 2016

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John Lamb was part of the Reds’ return package in last July’s Johnny Cueto trade and he had a strong showing at the Triple-A level in 2015. But the young left-hander posted a 5.80 ERA in a 10-start cup of coffee with Cincinnati late last season — his first 10 appearances as a major leaguer — and now comes word from MLB.com’s Mark Sheldon that Lamb will probably have to get off to a late start in 2016.

Lamb underwent surgery in December to repair a herniated disc in his back — a surgery that went unreported by the Reds until Tuesday afternoon. Reds manager Bryan Price acknowledged on MLB Network that Lamb is behind the team’s other starting pitchers and will likely open the coming season on the disabled list. The hope is that he might be ready by mid-April.

It’s a small but frustrating blow for a rebuilding Reds team that will be looking to establish some foundational pieces in 2016. Once he is recovered, Lamb will be expected to fill the Reds’ fifth rotation spot behind Raisel Iglesias, Anthony DeSclafani, Brandon Finnegan, and Michael Lorenzen.

This is going to be an ugly year for Cincinnati baseball fans.

Yu Darvish will report to spring training on time, hopes to begin mound work in March

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Rangers ace Yu Darvish missed the entire 2015 season after undergoing Tommy John reconstructive elbow surgery last March 17. Most starting pitchers take 13-15 months to fully recover from that procedure, and the Rangers aren’t counting on Darvish until sometime this May.

His rehab so far has gone on without issue.

Darvish offered some very positive updates Tuesday to Jeff Wilson of the Fort Worth Star-Telegram …

Darvish, 29, boasts a 3.27 ERA and 1.196 WHIP in 83 career major league starts. He can also claim a whopping 680 strikeouts in 545 1/3 career major league innings.

Texas has him under contract for $10 million in 2016 and $11 million in 2017.