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MASN Money For Dummies (Part 2): Understanding MASN, Orioles history and big money for Chris Davis

Posted on 07 January 2016 by Nestor Aparicio

“When we bought this team we paid $173 million for it and we owe approximately $75 or $80 million on it. In other words, we put up about $90 million in cash and the rest of it was mortgaged – like you get a mortgage on a business or a home or property you might own. We have to pay roughly $9 or $10 million a year in principal and interest on this franchise. And that hasn’t stopped us from being one of the top-spending clubs in the American League or for that matter Major League Baseball. The reason we are is because, basically, it’s the support of the fans that come to see the Orioles. Now in a way, it’s self-perpetuating. If you give the fans, particularly Orioles fans, a winning team, a team that’s competitive you’re going to get supported completely. I believe in that. Along with that ballpark that’s the gem of all ballparks, I believe that if we put a potential winner on that field every year, which is what we intend to do, we will be successful. And eventually we’ll make some money, and also we’ll pay off the mortgage which is also an important proposition.”

Peter G. Angelos

The Barn

March 1997

 

 

SOMETIMES, THE MISINFORMATION AND PROPAGANDA that Peter G. Angelos and his minions at the Baltimore Orioles spin regarding money, affordability and profit seems inconceivable to anyone who has been paying attention for almost a quarter of a century and doing the math.

It’s been a generation of mostly awful baseball and an extremely poor commitment to a winning product on the field for the fans of the Orioles.

Meanwhile, it’s been an absolute goldmine of riches for the Angelos family.

The results, the actions, the promises, the facts, the lies – it all speaks for itself.

The team’s record on the field since 1994 is 1665-1829. That’s four playoff appearances in 22 seasons. The team spent the first decade of the century finishing more than 20 games out of first place in the AL East race every season – and more than 30 games back in five of those 10.

Peter G. Angelos contributed $29 million toward the purchase of the Baltimore Orioles in the summer of 1993. Now, almost 23 years later, the empire has totaled up nearly $3 billion in total value – recent earnings totaling nearly $1 billion plus the current value of the properties.

But it’s almost like following the Donald Trump campaign with a fact checker. For many with a clear view, the “truths” are self-evident. But in the local media, no amount of promises or lies is ever held to accountability. The sports journalism done here is softer than the bottom of the current Orioles 2016 rotation – or maybe even the batting order, for that matter.

In this six-part series, “MASN Money For Dummies,” I’m here to fact check for Orioles and Nationals fans. This is Chapter 2 outlining the history of the local television network and its purpose and links to creating revenue for the local baseball franchises.

Chapter 1 outlines the goal of the series and is available here.

Last month at the team’s Fan Fest, former 50-home run king and current high-ranking Orioles executive Brady Anderson continued to spread the fallacy through the local media that the franchise is a “small to mid-market” team.

That is – very simply – a lie. It’s a myth from another era.

All of the numbers and profits will bear that out.

And if you judge the history of spending, winning, litigating and profiteering – it’s very clear the owner isn’t sincerely committed to winning and competing with other Major League Baseball teams for the best talent available and putting the best players possible into an Orioles uniform each spring.

And why should Angelos spend money or raise the payroll when the real money arrives via the MASN television network long before any commitment to winning is necessary?

In the old days, MLB teams needed to sell tickets and put asses in the seats to make money. Winning and having star players doing it was the formula to making money – or at least the prayer of turning an annual profit on a baseball team.

Angelos is now making between $75 and $100 million in profit per year with the current system of a low baseball payroll for the Orioles and a quiet, widely misunderstood cable television annuity that last year grossed MASN – and Angelos currently owns 83% of that entity – over $200 million from your living room according to SNL Kagan.

It guarantees this to be – by far – the most profitable investment in local sports franchise history.

I’ve done the math. Per Forbes, the Orioles made $197 million in profit between 2005 and 2014. The Angelos portion of MASN has made $397 million in profit since 2009. There was another undocumented chunk between 2005 and 2008 that was at least $100 million in total profit plus the $75 million in cash that MLB gifted him in two payments at the start of the deal.

His initial $29 million personal investment in the Orioles during the summer of …

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Orioles, Nats and MASN Money for Dummies: A complete primer on how Peter Angelos has lied and pocketed your dough

Posted on 03 January 2016 by Nestor Aparicio

“What you can expect, though, that those that comment – putting aside the fellow you mentioned (Nestor Aparicio), who you know is not even worthy of getting into that (chuckles), it really makes no sense to respond to him – the responsible people, who know baseball and who are baseball fans – the writers like you (Stan Charles) – if they want to criticize, they better look at the economics. They owe it to the public to explain to whoever is interested that the problem is disparity in revenues. Now, I have heard some of them mention that this MASN development might really generate some real funds, which would permit the Orioles to spend more money. That’s a pretty strong acknowledgment that the key to all this, to get off the losing years and so on, is more money invested on the field. And obviously, with that becoming available, that’s exactly what we’re going to do. We’re going to do that because we are hometown and we are sensitive to what the public is thinking. I know a lot of Baltimore fans, and, just personally, I want them to feel like I am responding to their wishes.”

Peter G. Angelos, May 2006

(as told to PressBox via Q&A)

PETER G. ANGELOS DOESN’T WANT YOU to know about the billions of dollars he has collected, dispensed and quietly usurped from local sports fans from six states via your cable television bill. It’s time for someone who is “responsible” to do the math on where all of that money has gone over the last 10 years as the Orioles, and its spinoff cable TV partner the Mid Atlantic Sports Network (MASN), have become a virtual annuity for the owner here in Baltimore.

Clearly, given the dozen years that he’s fought with his Major League Baseball partners, Bud Selig, Rob Manfred and now Ted Lerner and the Washington Nationals over this incredible sum of “found” money, surely there must some large pot of gold somewhere? The Washington Post wrote that it was $298 million in dispute from 2011 to 2015 after the New York Supreme Court hearing in early November. But that’s just the tip of the financial iceberg – a small number compared to all of the money that’s been flushed through MASN since it was berthed as a olive branch to Angelos by then-commissioner Bud Selig for allowing baseball back into the nation’s capital in 2005.

Over the last decade, I’ve been portrayed as a liar or a heretic by Peter G. Angelos and his media partners. After 21 years with a Baltimore Orioles media credential, my access was taken away by the club in 2007.

However, my track record still stands as unblemished heading into 2016.

I always tell the truth and write the truth. (That’s why you’re here.)

As you’ll see, I’ve put in all of the work for you – a little “term paper” for you oldtimers who spent time with microfiche in a lonely library – so you can learn about this history and realities of how the Nationals came into existence and what it’s meant for Baltimore and Washington baseball and the fans.

This series of facts is presented with two educational goals:

  • Track everything that was said – and very openly in the “mainstream” media – a decade ago when Angelos began this power struggle for the future money of Washington, D.C. and what he considered his market
  • Document everything that has happened since he began this trail of lies in search of all of the money that was designed and originally earmarked to improve the Baltimore Orioles

Everything presented in this series will be linked to major media entities like Forbes, The Washington Post, The Baltimore Sun, The New York Times, ESPN/Grantland, Sports Illustrated, USA Today and various reports with financial annotations. I’ve always been accountable in my work. Meanwhile, accountability is always completely absent from the mind and spirit of Angelos and his …

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