Atlanta Braves Afternoon Chop: Golden… Together
Braves revenue, profits tank in third quarter
ATLANTA BUSINESS JOURNAL / MARK MELTZER
The Atlanta Braves have been described as “tanking” on the field — tearing down their Major League team to build a stronger team in the future.
And their financials tanked as well in the third quarter.
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Parent company Liberty Media Corp. announced Tuesday that revenue for the Braves dropped $10 million to $109 million in the third quarter, operating income decreased $15 million to $1 million and a measure of profitability, adjusted operating income before depreciation and amortization, or OIBDA, decreased $14 million to $16 million.
Liberty blamed the results on “a decline in ticket sales and broadcast revenue as a result of having fewer home games in the third quarter of 2016, with 35 home games in 2016 versus 42 home games during the same period in 2015.”
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Liberty said that, as of September 30, approximately $496 million had been spent on the team’s new ballpark, of which approximately $373 million of funding was provided by Cobb County and related entities and $123 million provided by the Braves. Approximately $238 million had been spent on the adjacent mixed-use development, The Battery (including $7 million of cost towards future development phases, including the cost of buying land), of which approximately $27 million was provided by JV partners’ equity.
Total debt attributed to Liberty Braves Group increased by $75 million primarily as a result of additional borrowings, net of repayments, for funding the ballpark and mixed-use development.
The Braves went public in April as a result of Liberty Media selling a new tracking stock. The Braves stock (Nasdag: BATRA) closed Monday at $16.57 a share.
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[ Ed. Note: it does appear that the Marketing Department pulled out all the stops in an effort to bring people in to Turner Field in 2016.
New food items, extra concerts, ticket deals, commemorative bobbleheads and other giveaways were on the docket, yet the numbers still fell short of a bad 2015 even as the team finished strong.
Next: Inquiries Have Been Made
That should turn around in 2017 for multiple obvious reasons, so let’s hope this past season represents the nadir of revenue that is never approached again. ]