Friday, February 25, 2005

Havana Pete Showdown

Eric Fisher says the buying off of Peter "C. Montgomery" Angelos is close.
MLB has constructed a benefits package for Angelos believed to include guarantees to the Orioles' annual local revenues and future resale value and a dominant equity stake in a new regional sports TV network airing both the Orioles and Nationals. If the Orioles' annual local revenues fall below $130 million a year or if Angelos decided to sell the team and failed to get at least $360 million, MLB would make up the difference.

If it does proceed, the Nationals will finally be able to search for a TV deal for the upcoming season. Speculation is that both teams will be available on TV in the area, which probably makes sense.

I've said many times before that the revenue guarantees to Angelos are a really bad thing, because it eliminates all incentive to maximize revenue, and actually, in a perverse sort of way, could harm the team. Since Angelos is guaranteed a certain amount of revenue, what's to stop him from doing the bare minimum and sitting back and watching the revenues roll in from the league?

Thankfully, ol' Petey has too much civic pride to let that happen, but, at the same time, he's shown zero ability to guide a team, or to even put people in place who know how to build a team. And this guaranteed revenue stream would eliminate any need to try and find a solution.