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Bud Peter

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The Peter Principles (Ch. 13): Mi$ter Angelo$ & $on$ Network change$ everything for two citie$

Posted on 04 July 2018 by Nestor Aparicio

This is Chapter 13 of the upcoming book, “The Peter Principles.” This lengthy excerpt is a prelude to a WNST report on ten years of MASN money and how Washington baseball has affected Baltimore baseball over the past decade. The first three chapters of the book are available here:

The Peter Principles (Ch. 1): So, just how did Angelos become ‘King’ of Baltimore baseball?

The Peter Principles (Ch. 2): The error of tyranny at Camden Yards

The Peter Principles (Ch. 3): How close did Angelos come to owning Baltimore’s NFL team?

The Peter Principles (Ch. 12): Selig vs. Angelos – trust, antitrust and billions of dollars

 

 

“The most important part of the deal is the equity in MASN over the long term. In a few years that equity stake in the network will be worth far more than any rights fee that a Comcast or a Fox SportsNet could pay (the Washington Nationals). So they will in time have a 33 percent stake in MASN without one penny of investment. We pay all production costs, overhead, the staffing and program fees. The new Nationals get all the benefits without the risk. My goal, and I am sure it is the same for the Washington owners, is to have two very successful franchises that work together on a number of projects while being friendly rivals on the field.”

Peter G. Angelos

The Examiner

April 7, 2006

 

 

AS PETER G. ANGELOS WATCHED THE Boston Red Sox win the 2004 World Series, he was still a state of shock that his Major League Baseball partners and commissioner Bud Selig had actually done the unthinkable – placing a rival National League team into Washington, D.C. to compete with the Orioles, forever dividing the marketplace.

Insiders said they’d never seen Angelos so angry, so agitated, so betrayed and hell bent on making them pay for this decision to double cross a partner. Selig had been contrite in their conversations and vowed to somehow find a way to keep Angelos whole on the deal and the burgeoning business of television networks had become the next generation way of getting money from the masses to fund baseball growth. In the 1980s, MLB discovered sponsorships and a higher-end clientele. In the 1990s, MLB discovered leveraging municipalities for new stadia, skyboxes, club seats and premium sponsorships. Now, in the new century, it was going to be television rights and revenues derived from cable purchasers who are bundled into larger all-but-invisible packages where the “regional sports network” would garner a few dollars per month, per subscriber.

This was a way to collect automatic, “unseen” money from virtually every home in their region. They would be getting tens of millions of dollars from folks who wouldn’t even know they were funding Major League Baseball. The Lords would be getting money from people who didn’t even know what baseball was ­– or where to find it on the multi-channel cable dial.

Angelos had already become wise to the reality of the changing media marketplace. He didn’t really understand but it ­– but knew it had tangible and growth value in the future.

It was no accident that the New York Yankees and the Boston Red Sox had more far revenue to spend on better baseball players, which exponentially aided their ability to win and keep the money machine well oiled with local interest and new-age marketing. The Yes Network was a product of a 1999 merger between the Yankees and New Jersey Nets for the express purpose of marketing a cable television channel in the New York region that would cut out the middleman – the sports cable television networks. The war in New York with Cablevision was legendary and it was big money. In 2001, the New England Sports Network (NESN), which enjoyed a near monopoly status in the region for television sports, went to the basic tier of cable, meaning far greater distribution and more money that would be used to fund the new and improved Boston Red Sox.

The same Red Sox that Angelos just watched win the World Series, who were led in part by Larry Lucchino – the former Orioles president and investor, who was the visionary for the modern franchise and building of Camden Yards, and the first employee whom Angelos unceremoniously partnered with and then ousted a month later in 1993 after his Orioles acquisition from Eli Jacobs in a New York auction.

Angelos knew all of his options, demands and “asks” in regard to what he’d be trying to retain and obtain if Selig and his MLB partners ever crossed the line and did the unthinkable – putting the Expos just 38 miles away in his backyard.

But, make no mistake about it, Angelos would’ve far preferred to have never seen the Washington Nationals born at any cost or any profit.

He abhorred the concept of D.C. baseball.

Washington baseball was truly his worst nightmare as the owner of the Baltimore Orioles. He was absolutely convinced there was no financial way to make him “whole” – and worse, he truly believed that it would drastically affect not only his team, but that the Washington team would fare no better in a market that Angelos and most everyone else remembered as a two-time baseball loser in the 1960s and early 1970s. But a lot had changed since the Senators left for Arlington, Texas in 1971 to become the Rangers.

The Northern Virginia suburbs had grown exponentially over the nearly four decades and the biggest enclave of per capita earnings in the United States fell throughout what Angelos felt was hard-earned Orioles country. Angelos valued the Washington, D.C. community for the same reasons Selig and the other MLB owners did – they smelled the size, money and disposable income. Angelos claimed that 30% of his audience came from those homes and wallets. The Orioles and Major League Baseball were a television brand that his baseball brand had cultivated over 30 years and he and his partners paid top dollar for in 1993.

Angelos felt absolutely deceived, absolutely blindsided by their lack of concern …

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Dear Peter G. Angelos: Time will not dim the awfulness of your deeds

Posted on 02 July 2018 by Nestor Aparicio

This is the first in a long series of #DearOrioles letters to various members of the Baltimore Orioles. I will be writing them all summer in anticipation of the many changes and key decisions that are coming for the franchise’s ownership and leadership.

You can read my #DearOrioles prologue here.

On August 3, we’ll be celebrating 20 years of sports radio and media at WNST.net & AM 1570. I’m still waiting for the Orioles to win and to be kind.

So are you…

 

Dear Pete:

It’s been a while since you last ran from me. I know you didn’t like bumping into me – or most Baltimore Orioles fans, really – so much over the years but it’s not like I’ve really sought you out much lately.

The last time we exchanged a glance was back in the summer of 2014 – you were two blocks from my home. You were coming in the side door of the Hyatt Regency at the Inner Harbor and looking for any way possible to avoid me, along with my then-bald wife and Peter Schmuck. You caught a glimpse of the three of us and quickly disappeared behind a black curtain with a lot of security guys in suits with little earpieces.

Ninety minutes later, Rob Manfred emerged as the new Commissioner of Major League Baseball. And much like the rest of your tenure, you were nowhere to be found. Poof! Right in the middle of downtown Baltimore, you evaporated – like a vapor.

That’s been the eternal story of your ownership: plenty of questions, never any answers and a trail of smoke where the fans never find the fire until the team is 40 games under .500 again in a season of historic disgrace in a long trail of disgraces.

I know you’ve had some time down lately and there was a time when some in the family believed you were permanently moving away from the team and law firm but there’s been some rumblings from some mutual friends that you’ve been feeling better lately and might even be more involved than most think during this most tender of times in your long legacy of losing on the field and printing money behind the scenes.

Someone said recently that you were like “a Phoenix rising from the ashes!”

I hope someone in your department is up for this next challenge of building a baseball franchise all over again.

Most Orioles fans believe July 2018 is the most important of times because it will determine the future.

Oh, don’t worry: I’m not like Mark McGuire.

I AM DEFINITELY here to talk about the past – but only in how it relates to the future.

I know you’ve been trying to get rid of me for two decades – ever since that night in March 1997 when Frank Sliwka set up that lengthy chat over a few drinks at The Barn and you lied a lot about a little bit of everything – including being “a very available individual” – but I’m still here.

I’m still talking, researching, writing, opining, listening, learning and growing entering my 50th year on earth and 27th with the ears and eyes of Baltimore sports fans. And despite your pleas and the ignorance and insolence of your employees, who have been quite joyous in fulfilling your will and wish to punish me and treat me like another “very unimportant Baltimore baseball fan” – I still love baseball.

I still want to believe that one day – when you’re long gone and I’m still here – that I’ll feel welcomed at Camden Yards by the Baltimore Orioles franchise cheering for the team I loved as a kid and devoted my entire professional life to covering with accuracy, honesty and intelligent insights even when the truth didn’t serve your needs.

Maybe? Maybe not…

Time will tell.

I really have no idea how The Peter Principles are going to end. That’s why I’m writing to you today. And that’s why I’m not going anywhere. I’m still here watching Orioles baseball.

Despite all of the ridiculous awfulness you’ve presided over with your baseball team – and my life, my company and my credentials and fair access to do the job I’ve done since I was a 15-year old kid – I still care.

There are days when I’m ashamed to admit that, because it is shameful – the amount of time, money and thought I’ve put into the Baltimore Orioles during my first half century on the planet.

I would’ve loved to have been penning the 25th anniversary story in the summer of 2018 about your magnanimous tenure as a steward of the Baltimore Orioles. I would love to write tomes about you retaining Larry Lucchino back in 1993, hiring Pat Gillick and Davey Johnson for a generation that saw five World Series titles and parades down Pratt Street and two generations of great stars like Cal Ripken, Mike Mussina, Nick Markakis, Mark Teixeira, Adam Jones and Manny Machado we’ve had here in Baltimore. And about the way you welcomed legends like Brooks Robinson and Cal Ripken into leadership positions with the organization and community. And how you cultivated and earned the Washington, D.C. market with a solid, burgeoning regional franchise like the ones in Boston and St. Louis that used their regional sports networks and media to dominate the baseball landscape in six states with a national footprint of a powerful and respected brand that competes annually with wise long-term organizational decisions, strong ownership and a clear and transparent communication with its fan base.

But that’s not going to be your legacy for anyone who has been paying attention.

I’ve written most of your story in The Peter Principles – at least through the time when you won your war with your MLB partners and got all of the free MASN money in 2006 that changed every part of accountability and profitability for your family. Every crazy story and word I wrote is true – even your many lies, deceptions and bizarre tales of power, money, ego, ineptitude, pettiness and a life lived with very little emotional intelligence in regard to the Orioles and what it represented in the hearts and spirit of the city and the region.

I really wish you had been the “very available individual” you said you were on that night at The Barn. I really don’t have much to judge you on personally beyond that night, your public words and all of the deeds of your organization toward the community and toward me. It all speaks for itself. There are many things said to me and done to me personally and

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Selig

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MASN Money For Dummies (Part 3): Angelos was bleeding cash when Nats money came

Posted on 19 January 2016 by Nestor Aparicio

 

 

 

 

 

Those who complain don’t know the ins and outs of what’s going on. They have their own lives to lead, their own problems to deal with. And they are not going to become acquainted with what our economics are, and you can’t expect them to.”

Peter G. Angelos, May 2006

                                                                                 (as told to PressBox via Q&A)

 

 

THE SINCERE HOPE OF PETER G. Angelos is that you’re too dumb to figure this stuff out and too bored to read all of this vital information about where the money comes from. Especially now that Chris Davis has signed a long-term contract, which isn’t a blip on the radar of the finances of the franchise when you do the real math, many fans somehow believe that it was an incredible stretch to find the money to pay him.

Here’s the truth: knowing the facts about how much money the MASN tree is printing for Angelos and his family certainly doesn’t reflect well upon his legacy or commitment to winning. Especially when you consider that the team has been an abject failure on the field in 18 of the 22 seasons under this ownership group.

I love how Chris Davis said “we want to continue a tradition of winning here in Baltimore.” Spoken like a babe in arms. It’s kinda nice that he thinks that but that’s far from the truth. The Orioles haven’t “won” anything under the reign of Peter G. Angelos.

But Mr. Angelos has made a LOT of money – and after he lost a LOT of money.

But to understand the money – and where it came from and where it’s going – is to understand the Orioles’ offseason budgeting and what they’re trying to do on the field. From Chris Davis to Matt Wieters to Darren O’Day, it’s the money that funds the players.

As Buck Showalter said at the winter meetings on December 8th from Nashville on MLB Network TV: “We have plenty of money.”

Today, we’ll examine the history of Major League Baseball and the Baltimore Orioles ownership group and the birth of MASN and the Washington Nationals and how this nuclear war for the biggest pile of television money in local sports history began.

In the Fall of 2004, Peter G. Angelos, as usual, was preparing for war – this time with his partners over the concept of baseball in the nation’s capital. Realizing that commissioner Bud Selig and the owners of the 29 other MLB teams, who collectively had purchased the Montreal Expos, were hell bent on moving that franchise to Washington, D.C., John Angelos issued an internal memo cutting all expenses.

Of course, some saw this as a sign that he was about to sell the Orioles to local money manager Chip Mason.

“The mere issuance of a memorandum suggesting potential savings in a greater degree in efficiency of operations does not suggest that the enterprise being reviewed is for sale,” Angelos told The Baltimore Sun. “To suggest otherwise is absurd and clearly erroneous.”

The team had just invested $121.5 million into contracts for Miguel Tejada, Javy Lopez, Rafael Palmeiro and Sidney Ponson. “The millions recently spent on player acquisitions hardly suggest we’re on a cost-cutting crusade,” Angelos told the local newspaper. “On the contrary, we are moving forward aggressively to produce a very competitive and winning team for our fans both this year and in the years ahead.”

At this point, Angelos was very quietly hemorrhaging money by the tens of millions. In the early days, he bragged about the Orioles making money to The Baltimore Sun.

Seven years earlier, Angelos sat with me at The Barn in March 1997 on WLG-AM 1360 and went through a lengthy diatribe about how baseball could never work with two teams – one in Baltimore and one in Washington, D.C. (and at that point Northern Virginia seemed a far more likely destination). But he also told me that the Orioles lost $4 million the previous year – and that’s when they were selling 3.6 million tickets and winning.

Feel free to listen to that conversation here:

This Chapter 3 of my MASN Money For Dummies series will be brief because I’ve already written this part of the Angelos journey as Chapter 12 of The Peter Principles, a book I’ve been writing about the ownership of Peter G. Angelos.

I would cut and paste it here, but just click here and continue reading the history of how this MASN money gravy train began with the poor negotiation tactics of Bud Selig to deal with the likes of Peter Angelos. It’s now 12 years later and nothing is really solved except that the money is flowing in by the tens of millions every month via your cable television bill and MLB and the Nationals, along with owner Ted Lerner, haven’t figured out a way to extract their “fair share.”

In 1994, Angelos said about Selig during the MLB owners dispute with the Major League Baseball Players Association: “He is a very successful automobile dealer. What makes him think he has the abilities to do what he is trying to do here is beyond my comprehension!”

Angelos infuriated every partner in Major League Baseball in 1994. In 2002, he came back to save the day as a lead negotiator – and olive branch Democrat who curried favor with the Players’ Association – for Selig and his MLB partners. But at every turn he made it very clear that any notion of a team anywhere near Washington or Northern Virginia would never be acceptable under any condition.

Angelos lobbied many times and in many ways to keep baseball out of Washington, D.C. long before 2004.

“It isn’t that we would deny the people that live in those areas the recreational pursuit of baseball. We think baseball is a great game for everybody. But when we look at the experience of Boston, Philadelphia, Oakland, San Francisco – Boston and Philadelphia and St. Louis had two ballclubs. The history of baseball dictates that you can’t put two teams that close together. We are opposing that. We think Orioles baseball is plenty good enough for us as well as the people in the Washington suburbs and we thank them for that support and we want to retain that support.”

At the 2004 All Star Game in Houston, it appeared that Bud Selig was still unsure of the future of the Expos.

“I will not do anything to make Peter Angelos unhappy,” Selig told The New York Times.

It’s interesting to do the research and see the local media’s role in garnering the Washington Nationals for the nation’s capital. The Washington Post played as big of a role in the franchise and ballpark as it …

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