The sale of the Washington Nationals has been paused until the end of the 2023 season, according to Chris Smith of The Sports Business Journals. The Lerner family expects to resume the sale in the off-season, as they want management to focus on the upcoming season.
The Lerners seek to surpass the MLB record of $2.4 billion the New York Mets sold for in 2020. However, the Nationals have not fetched such offers. A huge reason for the lackluster offers is the ongoing dispute over TV rights fees the Nationals have with their Beltway neighbors, the Baltimore Orioles.
Currently, the two MLB clubs are in court fighting over unpaid fees related to their regional sports network, MASN. The RSN got created to facilitate the Nationals’ move from Montreal to Washington, D.C. MLB wanted to appease Orioles owner Peter Angelos, who had concerns a Washington team will hurt Baltimore’s market. The Nationals own about 24% of the network. Meanwhile, the Orioles has the rest.
Previously, an MLB arbitration committee ruled twice that the Nationals are owed $100 million. However, the Orioles have appealed the decisions. The New York State Court of Appeals listened to arguments from both sides earlier this month, according to SBJ. The court expects to deliver a ruling in the coming months.
The uncertainty of the Nationals TV rights has hampered the sale process. MLB clubs use TV rights are a significant source of revenue. The Nats have operated without that revenue since moving to Washington.
At least one suitor dropped out of the bid process. The Nationals also have a reported $500 million in debt. The team is in the midst of a rebuild, trading away former star player Juan Soto. Not having a franchise cornerstone player makes the Nats less appealing as well.
If someone offered the Lerners’ asking price in the near future, the Nationals would sell. However, garnering that kind of offer will be daunting for the family without the TV rights resolved.
