In New York, a ruling from a Major League Baseball panel has led to a significant reduction of the rights fees owed to the Washington Nationals by the Mid-Atlantic Sports Network (MASN). The panel has directed a decrease of 20% for each of the last three seasons within a five-year timeframe ending in 2026, attributing this cut to the declining state of the cable television market.
The assessment, made by MLB’s Revenue Sharing Definitions Committee, concluded that the Nationals would receive approximately $320.5 million from MASN for the period from 2022 to 2026. For the initial two years, 2022 and 2023, the rights fees were maintained at around $72.8 million each—aligning with the 2021 fees. However, these figures will drop significantly to about $58.3 million each year from 2024 to 2026.
The decision was influenced by a committee comprising prominent team owners, including Milwaukee Brewers chairman Mark Attanasio and Boston Red Sox chairman Tom Werner, who recognized the anticipated revenue decline stemming from subscriber losses and the challenge of raising fees for each subscriber.
In the committee’s detailed 56-page report, they noted that it was foreseeable that MASN would need to pursue a reduction in rights fees in order to stave off financial difficulties. They pointed out that a 20% decrease is consistent with market expectations observed back in 2021.
Overall, the average rights fee owed to the Nationals was valued at about $64.1 million for the 2022-26 period, down from $69.9 million for the preceding five-year period (2017-21), which had been adjusted to $60.8 million due to the COVID-19 pandemic. This represented an increase from the $59.4 million received for the prior contract period (2012-16). The committee acknowledged a general consensus regarding the deteriorating conditions in the industry and expected continued subscriber declines, despite some disagreements about the rate of these losses.
This ruling marks the latest chapter in a series of disputes that have been presented to the Revenue Sharing Definitions Committee over the last fifteen years. The Nationals’ petition for the New York Supreme Court to confirm the award made the ruling public, as reported, highlighting ongoing tensions between the teams over these financial matters. Efforts to resolve past disputes, particularly concerning the 2012-16 rights fees, resulted in a significant 2019 ruling and a later settlement reached in June 2023 after further legal negotiations.
On November 8, 2023, the panel delivered another decision indicating that MASN owed the Nationals approximately $304.1 million from 2017 to 2021, with adjustments made due to a nearly $45.5 million decrease for the pandemic-afflicted 2020 season. This ruling was subsequently affirmed by New York Supreme Court Justice Andrew Borrok.
Created in March 2005 after the Montreal Expos became the Washington Nationals, MASN has long been a contentious point between the Nationals and the Orioles, who hold majority ownership of the network, starting with a 90% stake. The initial agreement for MASN set rights payments of $20 million for each team in its early years, reflecting a structured increase over time.
The deal established a framework for resolving disputes through the Revenue Sharing Definitions Committee, which will continue to play a critical role as both teams navigate their complex financial partnership in the evolving landscape of sports broadcasting.
