The Nationals late last week filed a motion with the N.Y. Supreme Court, seeking to have the ongoing MASN media rights dispute sent back to MLB’s Revenue Sharing Definitions Committee. Judge Lawrence Marks in November vacated a RSDC decision in favor of the Nationals, and the Orioles-controlled MASN last month filed a notice of limited appeal seeking to have the matter sent to a “new and neutral forum,” calling the RSDC “irreparably conflicted.” The Nationals in their last documents argue that the court does not have the authority to send the dispute away from the RSDC, citing the ’05 settlement between MLB and Orioles Owner Peter Angelos that allowed the relocation of the Expos to DC. The Nationals are now represented by Quinn Emanuel, instead of Proskauer Rose, whose simultaneous representation of the Nats, MLB and several RSDC members during the original RSDC arbitration process formed a key basis for Marks’ vactur ruling. The club also argues the shift in legal representation, along with the ongoing delay in the case, warrants a prompt return to the RSDC for arbitration. The club said in its filing, “MASN’s underpayment of rights fees has already the Nationals to fund payroll and other expenses from its own reserves, and further delay could require the Nationals to seek new financing. This is not only burdensome in its own right, but it places the Nationals at a competitive disadvantage to other baseball clubs. ... MASN’s refusal to pay the fair market value fees required under the contract forces the Nationals either to have to borrow more money to fund cash flow needs (which comes with its own costs) or to limit or to forego the sorts of investments the Nationals should be making to build the club’s business for the future.” Nationals Partner Ed Cohen filed an affidavit in support of the motion, arguing MASN’s refusal to return to the RSDC is an attempt “to gain leverage in efforts to secure a negotiated resolution that would leave the Nationals worse off than under the agreed terms of the Telecast Agreement.”
