Court Tosses Arbitration Award in MASN Case
For the last three years, the Baltimore Orioles and Washington Nationals have been engaged in a feud over television rights fees. As both Wendy Thurm and I have previously discussed, the origins of the dispute date back to 2005, and Major League Baseball’s resolution of Baltimore’s objections to the Montreal Expos being relocated to Washington, D.C. (territory belonging at the time to the Orioles).
In order to alleviate the Orioles’ concerns, MLB structured a deal in which Baltimore would initially own 87 percent of the newly created Mid-Atlantic Sports Network (MASN), the regional sports network that would air both the Orioles’ and Nationals’ games. In exchange, the Nationals were scheduled to receive an initial broadcast rights fee of $20 million per year from MASN, an amount that would be recalculated every five years.
Jump forward to 2012, when Washington requested that its rights fee be increased to $120 million per year. MASN and the Orioles refused, and as a result the dispute ended up in arbitration, with a panel of MLB team executives – the Mets’ Jeff Wilpon, the Rays’ Stuart Sternberg, and the Pirates’ Frank Coonelly – ultimately awarding the Nationals roughly $60 million per year in broadcast fees.
Still not satisfied, the Orioles and MASN then went to court in 2014, asking a New York judge to overturn the arbitration award on the grounds that the panel was biased. After initially blocking MLB from enforcing the arbitration decision that August, presiding Judge Lawrence Marks gave MASN and the Orioles a more lasting victory on Wednesday, officially vacating the arbitrators’ award.
As a result, the Orioles and Nationals are back to square one in their dispute, potentially impacting both teams’ 2016 offseason plans.