Braves owner Liberty Media said Friday the team’s financial performance improved in the second quarter this year, principally as a result of having nine more home games in the April-through-June period than last year.
The Braves generated revenue of $131 million in the quarter, an increase of $28 million from the same period last year, Liberty disclosed. The team made an operating profit of $12 million in the quarter before depreciation and amortization, up $7 million from the second quarter last year.
The gains “were primarily due to an increase in overall ticket sales and broadcast revenue as a result of having … 44 home games in 2016 versus 35 home games during the same period in 2015,” Liberty reported in its quarterly earnings release.
The Braves’ schedule, of course, will balance out with fewer home games in this year’s third quarter. On a per-game basis, the Braves’ announced attendance ranks 25th among the 30 MLB teams and is down by an average of about 2,600 from last year.
On a conference call with Wall Street analysts Friday, Liberty Media CEO Greg Maffei acknowledged the Braves’ poor win-loss record and the efforts to rebuild the team through its minor-league system.
“We have had disappointing on-field results this season,” he said.
Then he sought some positives.
“We are a little better, 5-5 (actually 6-4 through Thursday) in our last 10,” Maffei said. “The Braves (had) the top-ranked farm system entering the draft and international signing period, and we’ve enjoyed great success in both of those … markets. We signed six of the top 25 international prospects, including the No. 1-rated prospect, Kevin Maitan. He has been dubbed the best international (amateur) prospect in a decade.”
An investment analyst on the call asked how the Braves’ farm system compares with the New York Yankees’ system, which has been bolstered by prospects acquired in recent trades.
“The only thing I know about the Yankees is their payroll is really higher,” Maffei quipped.
Although the Braves’ overall player payroll is lower than last year, Liberty Media said the team’s second-quarter financial results were impacted by writing off on an accelerated basis about $23 million in guaranteed salaries for players released or injured during the quarter.
Among the players released by the Braves in April-June were outfielder Michael Bourn and pitcher Brian Matusz. Outfielder/first baseman Nick Swisher was released in March.
On a different topic, Maffei noted that $203 million was raised from existing shareholders in May and June through a rights offering of an additional 15.8 million shares of Braves tracking stock.
About $150 million of the proceeds were used to repay a loan that Liberty made to the Braves for the mixed-use development under construction adjacent to the team’s new Cobb County stadium, with the rest to be used by the Braves for future development costs around SunTrust Park.
Braves stock, which began trading on the Nasdaq exchange in April, closed Friday at $16.07 per Series A share, down two cents for the day.
