Nationals owner: Lost TV fees hampered free-agent pursuit
Washington Nationals principal owner Ed Cohen is blaming lost TV revenues for the club's relatively quiet offseason.
Cohen, team ownership's point man in a lengthy dispute over the Nationals' 2012-16 television rights fees with the Mid-Atlantic Sports Network (MASN), says the club's ability to negotiate with top free agents has been hampered by the lack of revenue.
"MASN's underpayment of rights fees has already required the Nationals to fund payroll and other expenses from its own reserves, and further delay could require the Nationals to seek further financing," Cohen said in his affidavit filed last week. "This is not only burdensome in its own right, but it places the Nationals at a competitive disadvantage to other baseball clubs, which typically receive fair market value from their regional sports networks for their telecast rights. Without this added income, the Nationals are handicapped in their ability to invest in efforts to improve the team.
"For instance, without this added and steady income, the Nationals cannot bring full economic confidence to investments in multi-year player contracts to keep up with the fierce competition for top players - especially when such control over finances is in the hands of a neighboring club."
Washington earns nearly $40 million annually in TV rights fees from MASN, which is controlled by the Baltimore Orioles. Ownership was still able to front $37.5 million to ink second baseman Daniel Murphy to a three-year deal in December, and the club reportedly tabled massive offers to highly coveted free agents like Yoenis Cespedes, Jason Heyward, and Ben Zobrist, among others.
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The Nationals, who are projected to open the season with a $142-million payroll, are bankrolled by billionaire Ted Lerner, one of the richest owners in baseball. The ownership group has secured new legal representation for the next round of MLB panel hearings regarding the lost fees.