The New York Court of Appeals unanimously rejected the Baltimore Orioles’ claim that the MLB and commissioner Rob Manfred were impartial when the league’s revenue sharing committee ruled that the Orioles owed the Washington Nationals more than $100 million in television rights fees from 2012-2016.
“While it is unfortunate that our decision may send this protracted litigation into extra innings, that result is necessitated by the settlement agreement’s terms,” the court’s opinion stated.
Expectations are the Orioles may appeal the court’s decision in hopes of having the U.S. Supreme Court hear their appeal.
Meanwhile, Tuesday’s ruling serves as a win for the Nationals. At the very least, the Nationals have some TV rights valuation that could help facilitate a potential sale of the club.
The two MLB clubs have squabbled for several years over the Nats’ payment from its TV rights with Mid-Atlantic Sports Network (MASN). MASN got created after MLB agreed to let the Orioles own majority of the Nats’ TV rights to help soothe Orioles owner Peter Angelos over the Montreal Expos’ relocation to Washington, D.C.
The Orioles argued that D.C. was part of its market. In 2012, the two clubs were to negotiate fair market value for the Nationals. However, the two teams disagreed. The Nationals felt the club should’ve received around $100 million annually. The Orioles argued the Nats’ market is around $40 million.
An MLB committee served as an arbitrator, which ruled the Nationals should receive around $60 million annually. That decision means Mark Lerner’s club is owed an additional $100 million from Angelos.
The Orioles have since fought the decision with a series of appeals. Will a resolution be made?
The Lerner family recently put the club up for sale, seeking over $2 billion. However, offers fell short, largely due to the uncertainty of the Nats’ TV rights value. According to The Washington Post, Washington Wizards and Capitals owner Ted Leonsis offered $2 billion and expressed interest in buying MASN. Yet, Leonsis was told the network was not for sale.
Leonsis recently bought NBC Sports Washington. Pundits forecasted Leonsis’ purchase of NBCSW was in hopes of placing the Nationals on the network if he acquired the baseball club.
The elderly Angelos is ailing. Reports surfaced of financial woes for the Orioles. Could a resolution be a buyout by the Nationals from the mess created by former MLB Commissioner Bud Selig and Angelos in 2005?
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