Nationals Win Appellate Court Victory In MASN Dispute With Orioles

There was a key development in the long-running battle between the Orioles and Nationals over local broadcasting fees this morning. The New York Court of Appeals, the state’s highest court, ruled in favor of the Nationals after a hearing on unpaid rights fees (full judgment transcript).

The Nationals and Orioles jointly own the Mid-Atlantic Sports Network (MASN), which carries local broadcasting rights for both clubs. The Baltimore organization has a majority share (presently around 76%, dropping to 67% by 2032). That came as part of the agreement between the Orioles and Major League Baseball to facilitate the relocation of the Expos from Montreal to Washington — into the Orioles’ territorial range — nearly two decades ago.

As part of that deal, the sides agreed to share telecasting money owed by MASN to the clubs for broadcasting rights. An arbitration panel was created to resolve possible disputes between the franchises in calculating those fees. After the sides failed to come to an agreement for the period covering 2012-16, the issue went to arbitration. The panel — a committee made up of representatives from three other MLB teams — ruled closer to the Nationals’ desired number than the Orioles had found appropriate (albeit nearer to the O’s proposed figure than Washington’s). Baltimore and MASN appealed, questioning the league’s impartiality.

A court found in the Nationals’ and league’s favor on that issue back in 2019. The court ruled the network owed the Nationals roughly $105MM in unpaid rights fees. The Orioles appealed that decision, which was finally resolved today.

The appellate court’s judgment was unanimously in favor of the Nationals on the issue of impartiality. The higher court agreed there were no grounds for contesting the arbitration panel’s findings. (Hayes Gardner of the Baltimore Sun notes the Orioles have the right to petition the U.S. Supreme Court for review but suggests it’s unlikely the Court would have any interest in hearing the appeal.)

While it’s certainly a win for the Nationals, the New York court’s judgment wasn’t an unequivocal end to the dispute. The appellate court found the lower court had overstepped its authority in awarding the $105MM in past damages. While the arbitration panel’s ruling is no longer in dispute (barring a seeming unlikely successful appeal to the U.S. Supreme Court), the organizations have to return to the table to sort out the extent and payment of MASN’s overdue rights fees pursuant to a separate provision of their contract.

Uncertainty about the MASN rights payments has been an ongoing issue for both franchises for over a decade. It was particularly troublesome over the offseason, as the Lerner family’s attempts to sell the Nationals have reportedly stalled in recognition of the local broadcasting dispute. Even with a key legal victory now in hand, the dispute doesn’t appear to be coming to a close anytime soon as the sides regroup to sort out how much money the network owes to the Nats. MLB has sought to broker a permanent settlement between the Nationals and Orioles to facilitate a potential sale of the Washington franchise but has thus far been unsuccessful.