House That Hank Built
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Atlanta Braves third quarter revenues halved

By Fred Owens

YANGON, BURMA - OCTOBER 08: A bank employee stacks 1,000 kyat notes at the KBZ Bank main office on October 8, 2015 in Yangon, Burma. In Burma, the most widely deposited bank note is worth 1,000 kyat (0.75 USD). Bank branches often have to employ dozens of employees to count, bundle, and move the huge amount of bills they deal with on a daily basis. (Photo by Taylor Weidman/Getty Images)
YANGON, BURMA - OCTOBER 08: A bank employee stacks 1,000 kyat notes at the KBZ Bank main office on October 8, 2015 in Yangon, Burma. In Burma, the most widely deposited bank note is worth 1,000 kyat (0.75 USD). Bank branches often have to employ dozens of employees to count, bundle, and move the huge amount of bills they deal with on a daily basis. (Photo by Taylor Weidman/Getty Images) /
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Atlanta braves
The Atlanta Braves have loans and lines of credit every year. /

The Atlanta Braves carry debt every year, and the 2020 season will cause that debt to grow and push up interest owed.

(All financial numbers are in millions of  dollars and rounded.)

The club entered 2020 with a total debt of $559. By the end of the first quarter, their debt had grown to $698 and currently sits at $714.

In August, the Atlanta Braves had a word with their bankers to extend deadlines on some of their outstanding debt.

First, for the loan on the ballpark.

"debt agreements governing $297 million of debt at Braves Stadium Company, LLC . . .  covenants will not apply until the quarter ending September 30, 2021, subject to certain conditions being met."

Then for their revolving lines of credit.

". . .the credit facility at Atlanta National League Baseball Club, LLC (the “ANLBC Credit Facility”) covenant will not apply until the quarter ending March 31, 2022, subject to certain conditions being met. The ANLBC Credit Facility has total capacity of $85 million and is fully drawn as of June 30, 2020."

The covenants require the team to maintain a specified level of liquidity (cash).

". . . in August 2020, Braves Holdings amended the terms of a $100 million operating credit facility and extended the maturity to December 2022."

"As a result of the aforementioned amendments, Braves Holdings and its subsidiaries are in compliance with all debt covenants."

Cash on hand

The quarterly financials also show something called cash, cash equivalents, and restricted cash (C-CE-RC). In other words, everything you can turn into cash in 90 days or less. I’ll let Investopedia define restricted money and cash equivalents.

"Cash equivalents include bank accounts and marketable securities, which are debt securities with maturities of less than 90 days."

"Restricted cash refers to money that is held for a specific purpose and thus not available to the company for immediate or general business use."

The Braves started the year with $212 C-CE-RC, which rose to $343 by March 31, then dropped to $240 by September 30.

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