MLB uses a new method to resolve fee issue between Washington Nationals and Baltimore Orioles-MLB
The Major League Baseball has consulted a private investment bank and assigned it the task to short-list candidates that are interested in buying Television rights of Washington Nationals and Baltimore Orioles.
The move is meant to eliminate the role of MASN with regard to telecasting games of the Nationals.
MLB took this step after the issue over the television rights fees between the Nationals and the Orioles could not be resolved through the committee that it set-up.
Both, Orioles and Washington, are joint owners of MASN but the control is with the former.
The Nationals demand something between $100-120 million fee every year from the Orioles, but the latter strongly believe it is an unfair contention by the club.
The narrative within the Orioles is, according to the contract the revision of the fee amount will be made after every five year and thus asking for it before the stated time period is wrong.
To counter them, the Nationals are of the view the teams, which more or less constitute the same size of market as they possess, are earning far more money than they are paid by MASN.
The sum $29 million that was reimbursed by MASN to the Nationals in 2011 looks a pittance when it is compared to the rest of the clubs’ earnings from their television rights.
An amazing performance in the 2012 regular season and the resultant increase in the number of fans of the Nationals have strengthened their resolve to claim a greater amount of money.
As the MLB intervened and tried to settle the matter through negotiations, the Nationals did not step back even an inch from their actual stance. Similarly, the Orioles maintained intransigence.
An uncompromising attitude from both the parties has forced the MLB to contrive an innovative solution.
By granting rights to another network other than MASN for televising matches of the Nationals, new terms and conditions will possibly be written. That will more probably result into the resolution of the dispute.
The official stance of both the parties concerning this development has not come yet.
Within the next couple of days, their reaction to it can be expected. It will be interesting to see how both sides remove their grievances and forge a new relationship.
It remains to be seen as to which party will benefit the most in the end.
Tags: