A six-year-long dispute between the Washington Nationals and the Baltimore Orioles goes in front of an arbitrator this week. The dispute is over what amount in rights fees the Orioles-owned Mid Atlantic Sports Network should pay to air Washington Nationals games.
The dispute stems from an inability to reach a deal back in 2012. In 2014 an independent committee ruled in favor of the Nationals in the dispute over what they were owed. The Orioles appealed the ruling. This week, both sides will be heard by Major League Baseball’s Revenue Sharing Definitions Committee.
If the committee sides with the Nationals, MASN will owe the team a lump sum payment for seven years worth of media rights. However, that doesn’t mean the team will actually get the money. MASN and the Orioles could appeal the ruling again and continue to hold up the payment according to The Washington Post.
The Nationals will still be in a sort of financial limbo even if MASN doesn’t appeal, because the team will owe a large chunk of that settlement to Major League Baseball.
Even if the Orioles do not appeal the decision made later this week, the Nationals will not necessarily experience the kind of windfall everyone might expect. Because they have not had full television revenue for years, they have not been able to participate fully in revenue sharing. Once a sum is awarded, the league will distribute the amount the Nationals would have been paying annually in one lump sum. They will also need to pay back Major League Baseball, which loaned them money to help the team operate while the revenue in question remained in limbo.
There is also the future of MASN to consider. The two baseball teams’ are the only television rights they hold in the DC/Baltimore area. The Washington Capitals, Washington Wizards, and Washington Mystics all play on NBC Sports Washington. That network also has rights to DC United and Washington Redskins highlight and coach’s shows. If MASN suddenly owes the Washington Nationals a major settlement, it would be hard to see how the network can remain financially viable.
