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Atlanta Braves Looking to Buy Draft Picks? Where is this Money Coming From?

By Alan Carpenter

Sep 5, 2015; Gainesville, FL, USA; Florida Gators hold up a money down sign on the sidelines on third down against the New Mexico State Aggies during the second half at Ben Hill Griffin Stadium. Mandatory Credit: Kim Klement-USA TODAY Sports
Sep 5, 2015; Gainesville, FL, USA; Florida Gators hold up a money down sign on the sidelines on third down against the New Mexico State Aggies during the second half at Ben Hill Griffin Stadium. Mandatory Credit: Kim Klement-USA TODAY Sports /
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Webcam image from AtlantaBraves.com, 5/3/2016.
Webcam image from AtlantaBraves.com, 5/3/2016. /

The Answers – Guesses – Might Be Surprising

Based on the spending practices that have been employed since Liberty Media assumed control of the Atlanta Braves in 2007, there would be no logical answer.  Everything has been done methodically, by the book, and for a profit motive… which has caused no little consternation among fans, but it’s also to be applauded.  At the same time, GMs have repeatedly said that they have been given freedom to spend whatever has been necessary for the good of the club – whatever that means.

Yet 2015 revenues were down, and 2016 revenues certainly won’t be any higher.  However, profit was actually up, according to public filings.  At last check, SunTrust Park construction was on time and on budget, so that’s good.  That leaves a couple of possibilities for new revenue to pay for all of this activity:

  • New sponsorship deals.  While we shouldn’t expect the big partnership dollars to hit until SunTrust Park opens, it is also possible that the Braves are getting some early new monies from those deals.
  • A one-time splurge from Liberty Media.  Say what you want, but Liberty Media is in the business of making money.  They have not shied away from spending big dollars (yes – I know:  with the help of Cobb County residents) for a new stadium and the surrounding complex as an investment into the future.  They also know that this rebuilding/tanking phase of the team represents a rare opportunity to invest in players for the field for the next decade or so.  If anybody understands the ‘long view’ of investing, it would be this ownership group, who suffered through many a lean year of satellite radio.
  • Cut-back on Turner Field stadium maintenance.  The Braves are responsible for ‘all Routine Maintenance’ of Turner Field, and were soon anticipating a need for a large capital outlay for seat replacements and more.  If that money were not spent – due to moving out of the building by December 31, 2016 – and the cash diverted elsewhere, then that could account for have some extra dollars available.
  • Additional MLB revenue sharing dollars.  Here’s one source.
  • Diversion of monies from Construction line of credit.  Liberty Media secured a half-billion dollar credit line to fund the stadium prior to Cobb County issuing bonds for it part of the deal.  Those bonds are kicking in now, so LM should likewise have lowered its need for that credit source… unless they pulled a bit to support the team?  Not likely, but there are ways it could be done.

Much of this is clearly speculative, but you can’t buy out a bad contract deal without actually being able to pay for it, and if you aren’t cutting back on Summer player-acquisition, then you’d better have other resources if that’s your plan.  So these would be the most likely avenues for cash availability.

Next: Wanna Find Out about our Prospects?

Now we just have to wait and see how successful John Coppolella is at persuading clubs to play ball.  That itself may be the toughest challenge.

Maybe he oughta arrange a lunch.

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