NY Court Rules Against Orioles, Says Nationals Should Get Paid More

NEW YORK — The New York Court of Appeals on Tuesday ruled unanimously against the Mid-Atlantic Sports Network (MASN) and its majority shareholder — the Baltimore Orioles — in a years-long dispute over the TV rights revenue for the Washington Nationals.

Writing for the 6-0 majority, Associate Judge Madeline Singas reaffirmed a Major League Baseball committee's earlier finding that the Nationals have been underpaid for the value of their TV rights since 2012.

The case ended up in New York due to MLB's Midtown Manhattan headquarters.

The complex media rights case dates back nearly two decades, when the MLB relocated the Montreal Expos to D.C. (and they became the Washington Nationals). That move ended the Orioles' monopoly over the mid-Atlantic viewing audience.

From 1972 through 2005, the Orioles were the only MLB team in the Mid-Atlantic region and thus drew many fans from the D.C. metro area. But since 2005, the Nationals have operated in what had been the Orioles' television market.

To compensate for any lost revenue after the Expos were moved to D.C., the MLB allowed the Orioles sizable control over the Nationals' media rights. The MASN TV station was created to show both Orioles and Nationals games, but the Baltimore franchise was given a majority stake in the network.

Perhaps unsurprisingly, negotiations broke down over the Nationals' telecast rights fees for the 2012-2016 time period. Specifically, the Nationals said they should be paid more than what MASN and the Orioles were offering.

• The Nationals valued their rights at more than $110 million per year on average
• MASN only wanted to pay them at a rate starting at around $34 million for 2012 and rising to about $45.6 million in 2016

MLB’s Revenue Sharing Definitions Committee (RSDC) ultimately concluded the Nationals’ rights should be set at about $55 million in 2012, rising to about $62.4 million in 2016.

However, MASN and the Orioles have continued to dispute that figure in court, and have paid the Nationals far less, reports the Baltimore Banner.

MASN and the Orioles say the RSDC's award could threaten the financial sustainability of the network and the Orioles' franchise as a whole.

The Court of Appeals ruling Tuesday backs the RSDC's finding. However, the case is far from over.

The parties were ordered to resolve disputes over the years of nonpayments and any possible monetary damages.

"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," wrote Judge Madeline Singas.

Read the ruling here.