The chief executive of Braves owner Liberty Media said Wednesday that the team’s new Cobb County stadium, partly funded with taxpayer dollars, will boost the value of the franchise.
However, Liberty CEO Greg Maffei told Wall Street analysts that the company sees no need to sell the team despite the record prices paid for other sports franchises recently.
“I have noticed — we have noticed — the increasing value in sports teams,” Maffei said. “And we think the Braves’ management has done a particularly good job on that front, driven incrementally by two things: first renegotiations with some of our TV deals and secondly by their … stadium in Cobb County, which we believe will have a very positive impact on asset value of the Braves.
“So I don’t think we have a need to monetize (by selling the team). I don’t think we have a current plan to monetize. We remain very happy with (the Braves’ financial) prospects.”
Maffei said the 2007 acquisition of the Braves from Time Warner has proven to be a good investment for Liberty Media — especially when considering tax savings “north of $300 million” that the company received in the complicated transaction.
“We’re pleased; we continue to move forward there; we’re happy to see the value creation. And go Braves,” Maffei said.
He added that selling the Braves for cash would result in “painful” taxes for the company, because of the team’s relatively low tax basis when acquired by Liberty.
Maffei made his remarks on Liberty Media’s quarterly conference call with investment analysts. It is rare for Liberty, a Colorado-based company, to comment on the Braves.
Also on the call, Liberty executives acknowledged that the Braves have borrowed money for the stadium project. The executives weren’t clear on how much debt the Braves have taken on, but said it is included in $491 million listed on Liberty’s financial statement as “other debt.”
The Braves were valued at $450 million in the 2007 transaction in which Liberty returned 68.5 million shares of Time Warner stock to Time Warner for the Braves, a group of crafts magazines and $960 million in cash.
Forbes magazine last year estimated the Braves’ value at $730 million, a figure out of date by now given the recent inflation in sports franchise values.
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