The Baltimore Orioles and Washington Nationals buried the hatchet, agreeing on the terms of local media rights that would span from 2017-21.
This marked a significant turn in the long-standing Mid-Atlantic Sports Network (MASN) story.
The consensus confirmed an arbitration decision by Major League Baseball (MLB) that both clubs would receive $304 million for that five-year duration, leading to an annual revenue of nearly $61 million.
In a stark departure from the past, the Major League Baseball teams agreed on this deal in a few weeks rather than the decade-long dispute that preceded their last agreement.
The aforementioned issue pertains to the intense, acrimonious dispute between these teams over the media rights terms for the 2012-16 season.
A conflict only resolved last summer when the MASN, controlled by the Orioles, agreed to settle $100 million in additional rights fees to the Nationals.
For years, the issue of MASN remained one of the most contentious elements in the MLB framework. The Nationals claimed that they received fees below market rates.
While the Orioles and MASN asserted that the survival and profitability of the network were at risk.
The MASN issue stems from a long-standing MLB settlement with Orioles’ owner Peter Angelos, following the movement of the Montreal Expos to become the Nationals in 2004.
With the agreement reached, both teams, along with MASN, are set to deliberate on the rights fees for the period of 2022-26;
however, these discussions will likely be overshadowed by the rapid disruption in the media world due to digital cord-cutting.
The agreement may give a much-needed boost to the sluggish sale process for the Nationals, as it provides a clearer image of its future revenue.
Ted Leonsis, who owns the Washington Wizards, Capitals, and Mystics, has shown a continued interest in expanding his sports empire.
The Orioles, who have been wrapped up in their own puzzle regarding the club ownership and an often-discussed lease extension for Oriole Park at Camden Yards, also benefit from this clarity.
