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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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Bud Peter Ch 3

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MASN Money For Dummies (Part 4): Sue, sue, sue for the home team – Angelos v. Everyone

Posted on 22 January 2016 by Nestor Aparicio

 

“If we hadn’t reached a resolution with him, there is no doubt in my mind he would have sued,” said Bob DuPuy, baseball’s former president and chief operating officer. “He told my people he would sue and his professional background suggested that he was willing to sue.”

Bob DuPuy

Former MLB Chief Operating Officer

The New York Times

Aug. 19, 2011

 

 

Over the past decade, it’s clear that the script of “How to win the war with Major League Baseball and the Washington Nationals over $298 million” reads directly from the Peter G. Angelos law firm playbook.

There’s not one step in this process where litigation wasn’t threatened or, inevitably, enacted. The money – as we’ve outlined in the previous three chapters of this “MASN Money For Dummies” series – per this unique arrangement with Bud Selig and the MLB owners, has all been designed from the outset to funnel into his pockets.

And anyone not named Angelos who believes they’re entitled to it can line up with their lawyers and watch his legal team dance – all while dangling the hundreds of millions of dollars that’s currently sitting in his coffers. Later in this series, I’ll examine the world from Angelos’ point of view and what it’s meant to the baseball operation of the Baltimore Orioles, but it’s very clear to anyone watching this epic legal struggle that there’s an astonishing amount of money at stake.

Major League Baseball and the Washington Nationals are circling like buzzards to see what they can get – knowing they made a vague deal with a megalomaniac who has no intentions of ever giving any of them a nickel of the now billions in real money and value they’ve funneled his way since 2005.

If you want the money, you can deal with all of the aggravation, testimony, documents, discovery and lawyering up that Peter G. Angelos can muster and try to come and get it. Bud Selig left his throne without getting any closer than his successor Rob Manfred is getting. The dispute is now into its fifth year of absolute acrimony.

It was a fascinating admission on the part of Bob DuPuy, who was the foil in the Angelos-MLB negotiation at every turn in 2004 and 2005, that Angelos might be litigious. Some joked that DuPuy kept Amtrak in business, back and forth to Baltimore from New York to get a deal done for “Buddy,” who somehow thought he could strike up a reasonable agreement with Angelos after he crossed him by bringing a team to Washington.

Many make the mistake in believing that Angelos only likes asbestos and mesothelioma lawsuits.

Au, contraire.

Angelos stormed about legal action against Albert Belle and voiding his contract after he gave a fan the middle finger at Camden Yards, and eventually saved $30 million with an insurance claim that the team went to great lengths to enact.

He got the city to threaten to sue MLB back in 1994, after he walked away from his fellow owners in the labor stoppage in 1995 when they wanted to field replacement players.

He threatened the NFL when he tried to buy the Tampa Bay Buccaneers and even drew the attention of Art Modell before the Ravens came to Baltimore.

He’s fought with Ed Hale over billboards, aesthetics and advertising revenue at the then-First Mariner Arena.

He famously brought Russell Smouse, his lead lawyer, into the Orioles front office to keep things in order.

He threatened litigation and breach of contract with Dan Duquette in 2014, which is why the guy who’s currently running the team is still “running the team.”

Angelos wound up in a dispute with former GM Frank Wren over $400,000 after doing everything possible to publicly humiliate him with “causes” for his firing in the media. And that was 17 years ago.

And then, of course, the Angelos standby in contract negotiations with baseball players is the “player physical,” which has become something …

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