The Orioles and Nationals' never-ending MASN battle has taken yet another twist, and this one is a doozy.
The Nationals sued the Orioles in New York court Monday, alleging MASN has stopped paying Washington their television revenue payout.
Under the current arrangement, signed in 2005 before the Lerner family purchased the team, the Nationals were supposed to gain gradual financial stakes in MASN, capping out at 33 percent in 2032, a deal extremely favorable for the Orioles.
NEWS: @Nationals have sued @Orioles in NY court over MASN-related arbitration. A lot of stuff blacked out but sports writers may be interested. @ZachZagger @dougherty_jesse @jonmeoli. No index number yet. pic.twitter.com/pzPOOq9xRd
— Jack Newsham (@TheNewsHam)
April 8, 2019 "According to documents filed Monday in New York, MASN has made cash flow payments to both teams every year early in the season," reads a Hollywood Reporter article published Monday on the suit. "By June 2018, though, the Nationals hadn't received their payout and accordingly inquired about the missing money. Thus began months of correspondence between the two clubs and the MLB Commissioner without resolution."
"In October, the Nationals submitted the cash flow dispute to MLB Commissioner Rob Manfred for arbitration," the report continues. "In response, the Orioles asked Manfred to determine arbitrability. Manfred wanted the clubs to mediate first. And they did, but couldn't come to a resolution."
"Then, on March 22, with the new season about to begin, the Orioles made a pretty bold move by making a demand to play this new game over TV money before the American Arbitration Association — an outside body. According to the Nationals, the Orioles began 'asserting for the first time that MLB purportedly had a financial interest in the Nationals because of a $25 million advance that MLB had made to the Nationals.'"
Baltimore is now seeking to have arbitration occur before an outside body in the AAA because the Orioles feel this $25 million payment makes the MLB a minority owner in the Nationals, and thus any internal arbitration could not be impartial.
With this suit in New York court, the "Nationals are now seeking an emergency order to stop the arbitration before the AAA," the Hollywood Reporter article concludes. "The club contends it did not agree to arbitrate in this forum. The Nationals add, 'Nor could MASN have made any legitimate argument that the advance created an interest in the Nationals themselves: the Nationals had no obligation to repay the advance, and MLB had no right to reach into the Nationals' pocket to recover the money.'"
In essence, Nats are accusing Orioles of inventing a phony conflict -- saying the MLB's advance of $25 million to the Nats renders it conflicted -- to avoid arbitration before the Commissioner.
— Jack Newsham (@TheNewsHam)
April 8, 2019 After my story came out, the Nationals decided to seal the court documents. The team can't do anything about a reporter who has already downloaded them. Here's the team's memorandum in support of an injunction. https://t.co/Vdekz6haHPhttps://t.co/3Axks4S1rK
— Eriq Gardner (@eriqgardner)
April 9, 2019 The MASN saga continues...
