Are the Atlanta Braves Soon to Be Sold?
Jul 5, 2015; Atlanta, GA, USA; A general view of the scoreboard after the Philadelphia Phillies defeated the Atlanta Braves at Turner Field. The Phillies defeated the Braves 4-0 in ten innings. Mandatory Credit: Dale Zanine-USA TODAY Sports
Liberty Media Could Be Readying the Atlanta Braves for a Sale
It is just a rumor… but it is not the first time this rumor has surfaced. Forbes magazine was among the first to think that this could happen. At that time (2011), the rumor was strictly based around business advantages:
"It appears as though Liberty Media is preparing to unload the Braves. The tax advantages to Liberty’s purchase of the Braves from Time Warner 2007 expire after five years and ownership has slashed player payroll from $102 million to $84 million since 2008 despite higher revenue."
At that time, the company responded by quashing the rumor, both in public comments and in reality as no sale occurred, of course.
More recently, speculation was in the air two years ago as reported from the Marietta Daily Journal, which now repeats their own rumor in yesterday’s edition:
"Recent back-fence talk describes the same scenario that circulated a couple years ago — current owner Liberty Media selling to an Internet mogul with strong ties to Cobb County. Around Town first reported talk of a possible sale in September 2013 — prior to the announcement of the Braves move to Cobb County."
Old Rumor, New Fuel
The reasons that this new rumor might be much more believable are adding up.
- Just a week ago, we reported on an Atlanta Business Journal article announcing the creation of a “tracking stock” for the Braves that may soon be trading. It is not a “true” ownership share stock, but could lead to such a thing in the future as potential investors would be able to use this to assess the team’s financial situation separately from the rest of Liberty Media.
- Certainly, Liberty Media has been going “All In” to develop new revenue sources for the Braves in recent years:
- A 2014 TV contract renegotiation that will add $500 million over time.
- The new stadium under construction, complete with multiple corporate partner sponsorships
- The new entertainment venue, intended to create year-round revenue around the stadium
- MLB is also provided its own new and improved revenue streams via improved national TV contracts and other ventures.
Liberty Media’s recent efforts have been wildly successful. In 2011, Forbes valued the club at $482 million, after a purchase price of $400 million in 2007.
As of March 2015, that valuation estimate has leaped to $1.15 billion, and the team is now very well-positioned to continue that upward trend … which certainly would get buyers interested, and hence the new rumor.
Next: So Who Could Buy The Team?