The Washington Nationals are still the only MLB team that faces one significant disadvantage
After years of legal wrangling, the Washington Nationals remain without a benefit that the 29 other MLB franchises enjoy; full control over its television rights and the ability to plan for the future based on that revenue.
There’s one luxury that MLB revenue rankings bottom-dwellers like NL East division dweller Miami Marlins can afford that the division-leading and more wealthy Washington Nationals can’t. The Nationals are the only MLB team that not only doesn’t have full say over its television rights but also little if any idea of how much revenue the team will receive from that source. That status quo has been perpetuated even further by recent legal activity.
This situation began in 2005, when the Montreal Expos rebranded and relocated to become the franchise known since as the Washington Nationals. Washington, D.C. was at the time part of the television broadcast territory for the Baltimore Orioles as drawn up by MLB. To facilitate the move, a bargain was made. The Nationals were allowed to “invade” Baltimore’s territory in exchange for giving its television rights to the newly created MidAtlantic Sports Network (MASN), which the Orioles still control. Essentially, the Nationals took away part of Baltimore’s TV audience and in exchange, the Orioles got to negotiate Washington’s TV rights.
While that might seem a short-sighted agreement by the Nationals, it was essentially a condition of getting the relocation approved by MLB. It probably looked more attractive than staying in Montreal at the time. In order to keep the situation equitable, part of the deal was that MLB’s Revenue Sharing Definitions Committee would decide what MASN owes Washington for its cut of the TV money. That’s where the contention between the Nationals, MASN and Baltimore began in 2012 and continues to this day.
In 2012, the RSDC committee decided that MASN owed the Nationals a total of $298 million for Washington’s TV rights covering the following five seasons. MASN and the Orioles challenged that ruling, arguing that the committee was biased in the Nationals’ favor. Three years later, a New York state supreme court justice vacated the committee’s 2012 ruling. That put Washington on the legal offensive, appealing that judge’s decision.
After two more years of litigation, the Nationals got an answer on their appeal in the affirmative. According to the Associated Press, the New York state supreme court appellate division ruled that the amount MASN owes Washington should be determined by the RSDC on July 13.
It would seem like everything is over but the crying for Baltimore and both franchises will now await the RSDC ruling, but MASN and the Orioles are appealing the appellate court decision. It could be years yet before a final answer on this matter is handed down.
At stake in this dispute is a difference of more than $100 million dollars over two five-season periods, 2012-16 and 2017-2021. Yet for the Nationals, there is even more at stake.
Perhaps no factor is more important in any business’ short- and long-term planning than revenue projections. Even if Washington ends up receiving the low-end of that $100 million difference between what they and the Orioles believe they deserve, that might be better than simply not knowing what they will have coming in from their TV rights. The Nationals have crucial decisions on player personnel, like the impending free agency of outfielder Bryce Harper, to determine in the near future. Lacking information about how much TV revenue will be coming in handcuffs the franchise somewhat in making those decisions.
Next: 50 Best Teams Never To Win The World Series
As this legal dispute drags on, Washington is the only MLB team that can’t make plans which include its TV revenue as a source of working capital. Fans shouldn’t feel sorry for the Nationals, as the franchise knew what it was getting itself into when it made the decision to relocate, but the fact that five years of litigation has only led to more legal proceedings is ridiculous.