chadbourne

Chadbourne & Parke LLP

1301 Avenue of the Americas
New York, NY 10019
telephone: (212) 408-5100

Thomas J. Hall
direct tel 212 408 5487
thall@chadboume.com

February 11, 2015

VIA FACSIMILE (646-963-6597)
Honorable Lawrence K. Marks
Supreme Court of the State of New York
County of New York
60 Centre Street, Part 41
New York, New York 10007
Re: TCR Sports Broadcasting Holding, LLP v. WN Partner, LLC, et al.,
Index No. 652044/2014
Dear Justice Marks:
We write on behalf of TCR Sports Broadcasting Holding, LLP, d/b/a MASN, to oppose the
Nationals' application to modify this Court's preliminary injunction so as to require MASN to
make an additional (interim) telecast rights fees payment to the Nationals on April 1, 2015 in an
amount reflecting a quarterly installment of the disputed RSDC Award the legality and validity
of which is directly before the Court on MASN's petition to vacate. The Nominal Respondents
join fully in this opposition.
The essential issue of whether MASN is obligated to make any additional telecast rights
fees payments to the Nationals over and above those calculated under the RSDC's established
(i.e., Bortz) methodology while this case is pending has already been decided by the Court. As
reflected in the record, then-Commissioner Selig first purported to order MASN to make such
interim payments, under threat of sanctions, in a letter dated July 30, 2014. The Nationals
threatened to exercise a purported right to terminate its partnership relationship with MASN unless
MASN made the disputed payments. After argument and careful consideration, the Court
enjoined those efforts, reasoning that because the amounts demanded by the Nationals "are the
monies that are the subject of the action . . . it is those payments that must be stayed, to maintain
the status quo." Aug. 18, 2014 Hrg. Tr. at 104. Consistent with common practice, MASN offered,
and the Court ordered, that MASN post a $20,074,409 bond, reflecting the amount in dispute for
2014. Id.
Nothing of substance has changed since then. Nevertheless, the Nationals contend that the
issue should be revisited because oral argument on the merits of MASN's vacatur petition has
been rescheduled by the Court to May 18, 2015, a date subsequent to MASN's payment of its next
quarterly installment of telecast rights fees on April 1, 2015. MASN will pay the Nationals (and
also the Orioles) $10,511,218 on April 1, as part of the $42,044,874 that will be due to each Club
in telecast rights fees for 2015 under the RSDC's established (i.e., Bortz methodology). In
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Honorable Lawrence K. Marks

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February 11, 2015

addition, MASN has offered to bond the additional disputed amount of the April 1, 2015 quarterly
installment of $5,141,775 (as calculated under the RSDC Award). Regardless, the Nationals
demand cash payment of the disputed amount.
Increasing the amount of the injunction bond as proposed, however, is consistent with the
Court's prior order, would continue to preserve the status quo and would treat all parties fairly and
equitably. Among other things, while the legality and validity of the RSDC Award is adjudicated,
the additional disputed telecast rights fees will be secured by bond and MASN will continue to
have the funds necessary for its ongoing operations, reserves and distributions all of which
benefit both of MASN's partners the Nationals and BOLP. And, if the Court concludes, as
MASN respectfully submits it should, that the RSDC Award must be vacated, maintaining the
status quo would avoid any need to reverse course and seek recoupment of monies paid out to the
Nationals only weeks before.
The Nationals cite two reasons for rejecting this practical approach. First, it has
represented that the additional payments are necessary to sign players. Yet, that cannot be true.
As recent events confirm, the Nationals, operating on the Bortz-calculated telecast rights fees, has
been among the most aggressive Clubs in signing new players this offseason and has not been
harmed by the preservation of the status quo. In fact, the Nationals recently signed a
groundbreaking $210 million contract with pitcher Max Scherzer and "seem likely to start the
season with the league's fifth-largest payroll." See Chelsea Janes, Nationals Introduce Max
Scherzer, The Most Expensive Right-Handed Pitcher in the Majors, THE WASHINGTON PosT, Jan.
21, 2015; Chelsea Janes, Washington Nationals Payroll: A Closer Look, THE WASHINGTON PosT,
Jan. 29, 2015. Moreover, the Nationals' promise to return any excess amounts paid by MASN if
the Court vacates the RSDC Award belies the purported need for additional funds. The Nationals
suffer no halm by the bonding of the disputed amount whereas, if an additional cash payment is
required, MASN's operational revenues, reserves and ability to make distributions will be severely
compromised.
Second, the postponement of the merits hearing to May 18, 2015 cannot be fairly attributed
to MASN or to the Nominal Respondents. Argument initially was scheduled for December 15,
2014, but was adjourned due to MLB's refusal to provide discovery. After that date was
employed by the Court to resolve that discovery dispute, a new argument date was set for March
3, 2015 (in part because the Nationals' counsel was unavailable in February). The parties recently
were advised, however, that the March date was no longer available to the Court. Thus, the
hearing was rescheduled for May 18, 2015 after counsel for the Nationals and MLB indicated that
they were not available on earlier proposed dates. Clearly, those events do not warrant modifying
the injunction.
Under any assessment, no basis exists to alter the status quo. The parties' interests are
protected by the injunction, MASN's payment of the Nationals' April 1, 2015 first quarterly
telecast rights fees installment in the amount of $10,511,218 under the Bortz-calculated pro forma
and MASN's agreement to increase the injunction bond by $5,141,775, representing the additional
disputed amount as calculated under the RSDC Award.

Honorable Lawrence K. Marks

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February 11, 2015

Respectfully submitted,

Thomas J. Hall
(VIA EMAIL)
cc: Arnold M. Weiner, Esq.
John J. Buckley, Jr., Esq.
C. Bryan Wilson, Esq.
Jonathan D. Lupkin, Esq.
Stephen R. Neuwirth, Esq.
Jennifer Bishop, Esq.
Julia J. Peck, Esq.
Kwaku Akowuah, Esq.
Benjamin R. Nagin, Esq.
Carter G. Phillips, Esq.
Mark D. Hopson, Esq.
Aron U. Raskas, Esq.