A New Era for the Nationals: Gaining Media Control
The Washington Nationals are set to embark on an exciting new chapter as they prepare to gain full control of their media rights, a significant development that could pave the way for the team to return to the market. The Nationals and the Baltimore Orioles announced a long-awaited settlement on Monday, resolving a decades-long media dispute. Under the terms of the agreement, the Nationals will take ownership of their media rights starting with the 2026 season. This marks the end of a contentious period during which the Orioles controlled the Regional Sports Network (MASN) and the annual payments they received from the Nationals.
Breaking Down the Settlement
The settlement is a major breakthrough, particularly in light of the Nationals’ previous attempts to sell the team. In 2022, when the Lerner family sought to explore a sale, the media dispute loomed large as a significant obstacle. The uncertainty surrounding one of the team’s largest income streams—their media rights—deterred several potential investors. With the dispute now resolved, the interest in the Nationals is likely to surge, potentially increasing the sale price of the franchise. According to Sportico, the Nationals are currently valued at $2.2 billion, placing them 14th in Major League Baseball (MLB) in terms of worth.
Monetizing TV Rights: A Shifting Landscape
The settlement comes at a time when the landscape of TV rights is undergoing dramatic changes. Many MLB teams are seeing their RSN payments shrink, and the Nationals have not been immune to this trend. Under the MASN setup, the team is set to receive $58.3 million each for the 2024 and 2025 seasons, a significant decrease from the annual rate of $72.8 million they received in 2022 and 2023. This decline is a reflection of the broader challenges faced by the pay-TV industry, which has seen substantial subscriber losses in recent years. The traditional cable, satellite, and telco bundle has lost over 6.78 million subscribers in the last year alone, with a total loss of 35.4 million since 2019. This trend is likely to continue, putting pressure on teams to explore new revenue streams.
Exploring New Revenue Opportunities
The Nationals are not standing still in the face of these challenges. They are actively exploring new revenue opportunities, including jersey patches and naming rights partnerships for Nationals Park. These initiatives are part of a broader strategy to diversify the team’s revenue sources and reduce their dependence on declining TV payments. The team’s efforts to adapt to the changing media landscape are crucial as they prepare to take full control of their media rights in 2026.
Ted Leonsis: A Likely Buyer
Any discussion of a possible Nationals sale inevitably turns to Ted Leonsis, the owner of Washington’s NHL and NBA franchises. Leonsis has long been a prominent figure in D.C. sports, and he was one of the interested parties when the Nationals explored a sale in 2022. Leonsis has been vocal about his interest in adding more to his portfolio, particularly within the D.C. area. In October 2023, at Sportico’s “Invest in Sports” event, he stated, "I will only buy a team that authentically I can say … our platform will be in service to. So if you’re not in Maryland, Virginia or D.C., I’m not interested in the team." Leonsis’s commitment to D.C. and his existing sports investments make him a likely buyer if the Nationals do go up for sale again.
The Orioles Dispute: A Long and Contentious History
The media dispute between the Nationals and the Orioles has deep roots, dating back to the early 2000s when MLB moved the Montreal Expos to Washington. The move was met with strong opposition from the Orioles, who argued that Washington was within their commercial footprint and that a second team could devalue their territorial broadcast rights and ability to draw local fans. To address these concerns, MLB brokered a deal that gave the Orioles a significant majority stake in MASN, the RSN that held the local rights for both teams. The Orioles initially held a 90% ownership stake in MASN, with the Nationals holding 10%, and the split gradually dropped to 67%-33% over time. However, the Nationals’ rights were locked into the network controlled by the Orioles "in perpetuity," leading to years of legal battles over rights fees and accounting.
Looking Ahead: A Brighter Future for the Nationals
The settlement of the media dispute is a significant milestone for the Nationals. It not only clears a major hurdle to a potential sale but also positions the team to take full advantage of the evolving media landscape. With full control of their media rights starting in 2026, the Nationals will have the flexibility to negotiate new deals and explore innovative revenue streams. As the team continues to adapt and grow, the settlement marks a bright new chapter in the franchise’s history, one that promises a more stable and prosperous future.
