One can be excused for having lost track of the many twists and turns in the long-running broadcast-rights-fee dispute between the Baltimore Orioles and Washington Nationals. Over the past four years, the two teams have waged an extensive legal battle over how much the Mid-Atlantic Sports Network (MASN) ought to be paying the Nationals for the team’s local television rights, with both sides capable of pointing to various victories and defeats along the way.
For those interested in a longer recap of the many ins and outs of the dispute, we have previously covered all of the gory details here on a number of occasions over the last several years. In short, though, under the terms of the 2005 agreement in which Baltimore allowed the Nationals to move to Washington, D.C., the teams agreed that they would renegotiate the television rights fees that MASN — the vast majority of which is owned by the Orioles — would have to pay the Nationals every five years.
Unable to reach an accord on the Nationals’ rights fees for the 2012-2016 time period, the teams eventually took the dispute to an arbitration heard by Major League Baseball’s Revenue Sharing Definitions Committee (RSDC), which ultimately awarded the Nationals $60 million per year in broadcast rights fees from MASN. Dissatisfied with this outcome, MASN and Baltimore then took the matter to court, successfully persuading a New York state judge (Judge Lawrence Marks) to overturn the RSDC’s arbitration decision late last year. In particular, Judge Marks ruled that because the Nationals’ legal counsel in the dispute — the Proskauer Rose law firm — had previously represented several of the RSDC members’ teams, the firm’s participation in the arbitration created the appearance of potential bias by the RSDC in favor of Washington.
As I noted this past December, both sides then appealed Judge Marks’ ruling to the court of appeals. The Nationals argued that the trial court had erred by throwing out the arbitration award; MASN and the Orioles, conversely, have asserted that Judge Marks should have permanently disqualified the RSDC from rehearing the dispute. That appeal remains ongoing.
Washington, however, believing that MASN has been underpaying it for years, is not content to sit back and wait for the appellate process to run its course. Instead, the team is now asking Judge Marks to order the Orioles to re-arbitrate the matter before the RSDC, even while the appeal continues. MASN and the Orioles, meanwhile, have unsurprisingly opposed this request, countering last week by asking the trial court to postpone any future arbitration in the dispute pending the outcome of the appeal.
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