Major League Baseball panel reduces rights fees owed to Washington Nationals by 20 percent
(MENAFN) A Major League Baseball panel has decided to reduce the rights fees owed to the Washington Nationals by the Mid-Atlantic Sports Network (MASN) by 20 percent for each of the final three years of their five-year contract through 2026, citing challenges in the cable television market. The MLB Revenue Sharing Definitions Committee (RSDC) determined that the Nationals should receive approximately USD320.5 million from MASN for the 2022-2026 period. The rights fees were set at around USD72.8 million for 2022 and 2023, the same as in 2021, but are expected to decrease to approximately USD58.3 million per year from 2024 to 2026.
The committee, which included the chairs of the Milwaukee Brewers, Colorado Rockies, and Boston Red Sox, explained that the fee reduction was necessary due to an anticipated decline in revenue driven by subscriber losses and an inability to raise fees per subscriber. The RSDC acknowledged that, to avoid bankruptcy, MASN and the Nationals had agreed to a reduction in the rights fees for the 2024-2026 period, with the 20 percent cut aligning with expectations set in 2021.
On average, the Nationals' rights fees for 2022-2026 were valued at about USD64.1 million annually, down from USD69.9 million for the 2017-2021 period. The figures were adjusted during the pandemic to USD60.8 million, while they were previously USD59.4 million for 2012-2016. The panel noted that both parties recognized the deteriorating industry conditions, though they disagreed on the rate of subscriber losses MASN would face during this period. Many figures from the decision were redacted due to ongoing negotiations.
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