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

104 Comments

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.

Yasiel Puig was late to a workout on Monday, so Dave Roberts benched him

Jayne Kamin-Oncea/Getty Images
1 Comment

Earlier, Craig wrote about how Dodgers outfielder Yasiel Puig is back in manager Dave Roberts’ doghouse once again. Puig didn’t slide into second base when he was caught stealing to end Saturday’s game, which irked Roberts.

Puig didn’t earn himself any brownie points on Monday as he was late to a team workout and was benched as a result, MLB.com’s Ken Gurnick reports. Roberts said, “That was a decision he made, not me.” Roberts added that he was disappointed in Puig, though he did note that the former All-Star’s behavior has been improved for most of the season.

Puig, 26, has had a solid season, batting .259/.339/.474 with 26 home runs, 70 RBI, 66 runs scored, and 15 stolen bases in 554 plate appearances. While he hasn’t provided value on the same level as Justin Turner or Corey Seager, he’s been a valuable part of the lineup which makes this drama all the more unfortunate with just a week and a half before the start of the NLDS.

MLB, MLBPA grant Pirates exemption for Jung Ho Kang to participate in Dominican Winter League

Justin K. Aller/Getty Images
Leave a comment

Bill Brink of the Pittsburgh Post-Gazette reports that the Pirates were granted an exemption by Major League Baseball and the players’ union which will allow infielder Jung Ho Kang to participate in the Dominican Winter League without being removed from the restricted list.

Kang, 30, has been denied a visa by the Department of State as a result of his third DUI in South Korea last September. Kang was also under investigation in 2015 for alleged sexual assault.

Kang is under contract through the end of 2018 and the Pirates have a club option for the 2019 season as well, so it makes sense they would try to get him into some type of baseball action ahead of next season. The infielder has hit .273/.355/.483 in 837 plate appearances across two seasons in the majors. As Brink notes, Kang has already arrived to the Dominican Republic and will work out with his team, Aguilas Cibaenas, ahead of the start of the season on October 20.