Saturday, October 02, 2004

Deal ensures O's compensation if revenue is lost

Team guaranteed at least $130 million each year; regional TV network set
By Jon Morgan and Ed Waldman
The Baltimore Sun Staff
Originally published October 2, 2004

The Orioles will be guaranteed at least $130 million a year in revenue and be assured of a price of at least $360 million should the franchise be sold, under an agreement nearing completion between the team and Major League Baseball.

Orioles owner Peter Angelos demanded a deal to protect the franchise from any adverse financial consequences after Major League Baseball announced this week that it would move the Montreal Expos to Washington for the 2005 season.

The agreement calls for baseball to pay the Orioles in the event their gross revenue falls below a benchmark of about $130 million, millions less than they are expected to earn this year without competition in Washington, but still a valuable safety net. The benchmark is being set by a formula based on attendance.

The sides are expected to continue face-to-face negotiations tomorrow.

Read the entire article here on the Baltimore Sun website.