Atlanta Braves postseason bumps annual revenue to $404M
By Fred Owens
Follow the money out
A year ago I wrote about LMC’s 2017 financial report and as far as possible where the money went. One issue of concern for the Atlanta Braves came in the form of excess debt.
"In 2015 and 2016 the Braves failed to comply with MLB’s debt service rules (pg I-47.) As a result, they are “now subject to certain remedial measures” as well as being required to repay that debt."
The Atlanta Braves made a significant effort to come into compliance and prevent MLB from taking direct control of team finances. According to Tim Tucker writing for the Atlanta Journal-Constitution, total debt dropped by just over $130M.
"The financial results released Thursday show that the Braves reduced their debt to $494 million at year’s end, compared to debt of $626 million on Sept. 30 . . ."
The Braves had about $107 million cash on hand at the close of business on 31 December. They will (or may have already begun to) spend about $55m from cash and borrow about $145M in the future to fund the next phase of construction at The Battery.
Atlanta Braves
All said and done the Braves Operating Income Before Depreciation and Amortization (OIBDA) amounted to $98M.
Last year that number was $7M. Part of the OBDIA was the $21.6M paid to Adrian Gonzalez, so he not only freed up (as yet unused) payroll space this season, he reduced taxes.
Yay, I’m happy. How about you?
About that payroll space
Tucker’s post also included quotes by Liberty Media CEO Greg Maffei concerning the Braves and Tucker apparently broached this with Maffei because he noted that payroll is currently down from last year.
"“We are super-excited with the signing of Josh Donaldson, along with the return of Brian McCann to the Braves. We want our team to win the World Series and believe our team has the potential to and is on the right path to do so . . . The management team has our full backing to do what they believe is right to win,” Maffei said. (my emphasis added)"
That seems like a response to those who suggest LMC is reining in Braves spending and points the finger at the decisions of the front office.
Last year CEO Terry McGuirk that few teams would have as much to spend the Atlanta Braves. Since then GM Alex Anthopoulos said many times the Brave’s could shop in any aisle. I’d hate shopping with them as much as I hate shopping with my wife.
The frustrating part wasn’t the trip, it was watching her not make choices. She’d find a dress, said she liked it, then put it back at least a half-dozen times, and we’d leave without any of them.
I made this mistake of going back a week later and buying one. When I gave it to her, she asked why I bought it. I returned it and don’t bother to go along anymore. At the same time, she buys things at a yard sale because they’re cheap, never mind that they’re worn out or obsolete.
Sound familiar?