Braves’ McGuirk disputes report of team’s potential sale
The Braves have been profitable for Liberty Media. But if they're for sale, CEO Terry McGuirk doesn't know about it.
(First posted: 1:28 p.m.)
(Last updated: 4:50 p.m.)
If Liberty Media is preparing to put the Braves up for sale, as a report suggests, the team’s highest ranking executive doesn’t know about it.
“I speak with Liberty people fairly frequently and there’s absolutely nothing new here,” Braves chairman and CEO Terry McGuirk said. “The whole article looks pretty amateurish to me. Liberty has no interest in selling right now. Life is good. The team is good. I’m the person in position to know these things and that’s the most informed comment you’re going to get.”
McGuirk is upset because at a time when he would prefer people focus on a potential World Series contender, one week before the season opens, Forbes Magazine is reporting Liberty Media may be preparing to sell the team. In its annual valuation of major league baseball franchises, Forbes ranked the Braves 13th out of 30 teams with a value of $482 million and included this comment: “It appears as though Liberty Media is preparing to unload the Braves. The tax advantages to Liberty’s purchase of the Braves from Time Warner [in] 2007 expire after five years and ownership has slashed player payroll from $102 million to $84 million since 2008 despite higher revenue.”
That’s actually somewhat misleading. Liberty already has secured the tax advantages of its complicated May of 2007 purchase from Time Warner. The only time stamp related to ownership was an agreement between Liberty and MLB that they remain as owner for at least 4½ years — effectively, after the 2011 season.
There’s also a belief that a quick attempt to sell by Liberty, after tax benefits had been secured, would trigger problems with the IRS. But it might be past that point.
A phone call to Liberty Media’s headquarters in Colorado brought the expected response.
“We don’t comment on speculation like this,” said Courtnee Ulrich, vice president of investor relations.
I considered asking her where Kenshin Kawakami would be playing next week, but I passed.
Liberty Media generally has not been popular with the fan base. The company represents faceless ownership that is based far from Atlanta. The fact that the company allows McGuirk to run the franchise doesn’t matter for the simple reason he’s not the owner.
There’s also the matter of payroll having been reduced the past few years. McGuirk has long vehemently disputed the reported numbers, saying Braves’ payroll “has gone up.” But every team computes salaries differently, and various databases all show Braves’ payroll has dropped. Most show that total payroll was at, or close to, $102.3 million in 2008, $96.7 million in 2009 and $84.4 million in 2010. The fact general manager Frank Wren has rebuilt the club back into a playoff team is commendable, given the backdrop.
Is private ownership always better than corporate ownership? Hardly. The Atlanta Spirit is the only proof you need of that. But at least when something goes wrong, people know who to scream at. You can’t scream at an annual stock report.
The potential sale of the franchise makes sense. As the Denver Business Journal wrote: “Liberty Media has not announced any plans to unload the Atlanta team. But John Malone, Liberty Media chairman and founder, is famous for making use of tax advantages, and he has said Liberty Media doesn’t consider the baseball team a strategic asset.”
See, that’s the problem: Most people don’t want their sports teams known as a “strategic asset” — or worse, a non-strategic asset.
Four months ago, the Wall Street Journal’s list of highest paid CEO’s was topped by Liberty’s Gregory B. Maffei. His compensation: $87.1 million. The Braves’ 2010 reported payroll: $84.4 million. But Maffei kept stockholders happy. Forbes reported the franchise’s 2011 value at $482 million (up from $446 million in 2009) and operating income at $22.2 million (up from $5 million in ‘09 and $2 million in ‘10).
In Colorado, ownership is achieving its financial objectives.
In Atlanta, McGuirk would prefer the focus be elsewhere.
“This is not a subject that’s even in my thinking right now,” he said of a potential sale. “We’re getting ready for the current season.”
He need not worry about distractions. If anything happens, it won’t be until after the World Series.
By Jeff Schultz
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195 comments Add your comment
WAR EAGLE
March 24th, 2011
2:17 pm
Blank would best be served owning the Hockey team. Let Cuban buy the Braves.
Jared
March 24th, 2011
2:17 pm
Mark Cuban!!!!
Unknown Hinson
March 24th, 2011
2:21 pm
Anyone with a LAST NAME please!!! Conglomerate companies should not be allowed to own a professional sports team unless they are in huge financial trouble. Great news!!
Kentavo
March 24th, 2011
2:23 pm
Why are people clamoring for Cuban? The Mavericks have spent tons of money in his tenure, but haven’t won any championships.
wxwax
March 24th, 2011
2:24 pm
No question that since Liberty took over, investment in the team has declined and so have the results.
Logically, you’d want new ownership.
But this is one of those “devil you know” situations.
Because there’s always another Atlanta Spirit out there, underfunded and ready to bungle things even worse.
Go Dawgs!
March 24th, 2011
2:25 pm
The CEO makes $87 million annually? If you’re wondering why our economy is FUBAR and you can be bankrupted if you get a bad disease or your child can be expected to die because they’ll run through their lifetime insurance payout due to any number of long-term diseases, this is the reason. I bet he’s a Tea Partier who doesn’t think he should have to pay taxes, too.
Hoosier Aaron
March 24th, 2011
2:25 pm
Chuck Greenberg obviously has an interest in owning a baseball team.
It would certainly be nice to have an owner interested in owning a BASEBALL team.
Brett Favre was once a Falcon
March 24th, 2011
2:25 pm
I might just buy this team. Then I can come out of retirement and pitch. Starter, of course.
Gwinnett Fred
March 24th, 2011
2:26 pm
How about The Donald????
There’s already a precedent for a baseball owner going on to live in the White House!!!
5150 UOAD
March 24th, 2011
2:26 pm
If they do get sold maybe they can move. The could change the field name to the ART and the Falcons could play outside there.
Gareth Bale
March 24th, 2011
2:29 pm
Braves need to be sold to some Russian or Middle Eastern oil magnate who literally does not consider a $200M payroll to be any big deal.
Ned Pepper
March 24th, 2011
2:33 pm
Sell it to Donald trump and Rush Limbaugh
Disbott 3000
March 24th, 2011
2:36 pm
Liberty has been nothing but an empty suit and it would be good riddance. I suppose I wouldn’t care if they were an empty suit if they increased payroll incrementally every year, but since they have chosen the opposite road they mean nothing to me. I wish Ted would buy them back, but he’s made it clear in the past that he’s not interested. Please give us a person who cares!
taudawg
March 24th, 2011
2:41 pm
So when is it bad to make profit? Why would anyone be offended that the Braves revenue is up? Bet not one person here would work for free. Why do we expect the team owners to operate for free or at a loss? Because they should “do it for the fans?” Hahahahahahaha. How naive and ridiculous many of us sound.
We are so class envious it is silly
66Bravo
March 24th, 2011
2:41 pm
Mark Cuban??? Are you guys serious? What connection does he have with Atlanta? Let’s get real…we need a local business fan who respects the game and celebrates the city! Bernie & Arthur!
dahlonega
March 24th, 2011
2:41 pm
i would love cuban. but hasn’t mlb tried to keep cuban from owning a major league club in the past. seems like they didn’t want him to own the cubs or the pirates.
Ted
March 24th, 2011
2:42 pm
IF ANYONE FROM THE ATLANTA SPIRIT GROUP COMES FORWARD AND EVEN MENTIONS BUYING THE BRAVES; OH, THE HUMANITY!!!!
Possible Owner?
March 24th, 2011
2:42 pm
Hmm, 5.5 million people in metro Atlanta. We each put $60 in, and we can buy the Braves! Who’s with me!?!?
P. Bull Terrier
March 24th, 2011
2:42 pm
The Atlanta Spirit Group announced that they plan to enter discussions with “South Georgia Fan” as part of their ongoing plan to purchase the Atlanta Braves. The rumored $491.77 investment from “South Georgia Fan” would make him/her/it/them the largest ASG shareholder and give him considerable power in the decision making process.
In related news, Dominique Wilkins plans to sue the ASG as a result of a dispute over ownership shares and control over the future decisions. Wilkins contends that his investment in the franchise – a pair of shoes that he wore in a 1987 game agains Washington – is worth at least $500, and gives him a controlling interest in the franchise.
Bravefan for life
March 24th, 2011
2:43 pm
Will Liberty sell the Braves before the free agency starts and our really good players sign elsewhere? Stay tuned for NO more details in the future.
1911A1
March 24th, 2011
2:43 pm
Everyone calling for Ted to buy the team back, please understand that he doesn’t have the money. He spent it all buying Montana.
JPopNC
March 24th, 2011
2:43 pm
Okay..okay, I’m willing to act as spokesperson for a fan-owned team. Just need everyone to pitch in a couple thousand dollars each. Then we’ll run the team the way it SHOULD be run! (although they’re not looking too shabby this season I must say).
SHANNON
March 24th, 2011
2:44 pm
IF THE PRICE WERE RIGHT, ARTHUR BLANK WOULD BE A GOOD CHOICE
Wishful Thinkin'
March 24th, 2011
2:48 pm
Ok, when I win the Mega Millions on Friday night, I will buy my beloved Braves and lookout Yankees!!!!!
Rock Star from Mars
March 24th, 2011
2:50 pm
TEDDY TEDDY TEDDY……..they can serve Bison burgers at the stadium…Itsa No Brainer!
Bryan
March 24th, 2011
2:50 pm
Would love to see Mr.Blank purchase this team!
Rock Star from Mars
March 24th, 2011
2:52 pm
Ok…here we go. City of Atlanta sells airport to State….takes some of proceeds, buys Braves….WOOO HOOO! Can I getta witness?
ryan
March 24th, 2011
2:53 pm
What about the former Atlanta Dream owner who wanted to purchase the Braves at one time what did with the Dream was turn into a winning team .
JoeBravesFan
March 24th, 2011
2:54 pm
This would be awesome, but only if it was sold to someone who actually cares about the success of the Atlanta Braves. We don’t need another Liberty Media type to purchase the franchise, that’s for sure!
PMC
March 24th, 2011
2:57 pm
The above financial information is why it doesn’t make sense to whine about Chipper Jones salary.
It’s always been Liberty Media that’s the problem but Wren has done a fantastic job with the constraints considering.
McGuirk can’t say anything publically of course but Obviously they are going to sell the team.
dahlonega
March 24th, 2011
2:58 pm
i wonder if phil knight is a braves fan. phil would be an awesome owner. the guy would want to win at any cost.
para brave
March 24th, 2011
2:58 pm
You can forget about Ted buying it. He has said that he isn’t interested in buying back the Braves. Mark Cuban, heck no. Need someone like Nolan Ryan to buy the club.
Kashi
March 24th, 2011
3:00 pm
Arthur Blank must step up. Combination of Football and Baseball winning championship will rock this town. His dream of open stadium for Falcons will be easily met too!
PMC
March 24th, 2011
3:02 pm
The good it has done is in forcing the Braves to find ways to be competitive while not spending what other top teams are spending.
The result is that the minors are full of talented pitching arms.
Next step, finding a few more quality outfielders.
PMC
March 24th, 2011
3:02 pm
I’d rather have Andre 3000 buy the club.
Andre
March 24th, 2011
3:03 pm
I just did some research, and according to Forbes, Ted Turner has a net worth of $1.9 billion.
The Braves, according to Forbes, are worth $482 million.
Surely Ted Turner can afford to buy back the Braves and have enough money left over to live comfortably.
Subtract $482 million from $1.9 billion and you get $1.4 billion. In other words, if Ted buys back the Braves, he’ll still have money in the bank.
ted
March 24th, 2011
3:06 pm
Before every gives the 2 thumbs up, Liberty has mostly stayed out of the way and let the grownups run the baseball operations….family ownership can have its downside (read: Mets, Dodgers)
Robert
March 24th, 2011
3:19 pm
Liberty is taking profit.
You have to figure the value of the franchise went up by about 25% once Cox left
Ali50
March 24th, 2011
3:25 pm
The correct spelling is “its”, not “it’s”, in the first sentence. Don’t you guys proofread anymore?
bulldogmaniac
March 24th, 2011
3:26 pm
Buy em back TED!
KC Frenchy
March 24th, 2011
3:26 pm
Arthur Blank-Yes, Ted Turner-No or Mr. Blank get your buddy Bernie Marcus to step up & buy, we need local ownership that is dedicated to competing for a title every year! Go Bravos goodbye Liberty Media
P. Bull Terrier
March 24th, 2011
3:29 pm
Breaking News: Joe Johnson announced plans to sue the Atlanta Spirit Group and several potential investment partners over a proposed purchase of the Atlanta Braves from Liberty Media Group. Johnson will file suit against the Atlanta Spirit Group, Dominique Wilkins, “South Georgia Fan”, Charlie Sheen, and Magic City dancer Mer-Sadees.
Johnson alledges that the $600 in one dollar bills that he tossed on stage during a performance by Mer-Sadees was, in fact, an investment in the Atlanta Spirit Group partnership. In addition to her job as a performer at Magic City, Mer-Sadees is also a partner in the Atlanta Spirit Group. If Johnson’s stack of $1 bills is ruled to be an investment rather than a tip, Johnson would become the largest ASG investor and seize control of the group from “South Georgia Fan”, Wilkins and Sheen.
Scott from Fairburn
March 24th, 2011
3:31 pm
Terry McGuirk is most likely very aware … would not surprise me if he is putting together an ownership group himself to buy the team …
Larry
March 24th, 2011
3:31 pm
“So I’m assuming the news that the team may be for sale will not be met with disappointment.”
Uh, ya think? Duh!
give us a real owner
March 24th, 2011
3:32 pm
The payroll declined by 18 million the last 3 years while a number of teams have significantly INCREASED their payroll. We’ve fallen way down the rankings of MLB payrolls and are now in the middle.
We need an owner who will SPEND.
RoadDAWG
March 24th, 2011
3:32 pm
Kenali @ 2:02pm : “The only person on the Braves team with any real talent is Brian McCann”
What are YOU smoking, and where do I get some? McCann, Jason Heyward, Tommy Hanson, most of the bullpen, Freddie Freeman (granted it’s very early on him)…the list of Braves talent which was developed in-house and is now on the big league roster would be the envy of all but a handful of teams in the majors. Oh…and we’re widely considered to have the best minor-league pitching in all of baseball.
You’re just one of those people that likes to tear down the home team, rather than accept the fact that we had stingy corporate ownership for a little while, so our ‘misses’ in free agency were a much bigger deal than they used to be.
The future is VERY bright for the Bravos…and David Dickie sounds like a GREAT owner option to me.
braves70
March 24th, 2011
3:32 pm
How about the big 3 of Snoltz, Glavine, and Maddux teaming up with a few others to buy the team? They have plenty of millions available and time to kill.
MSC-OFF
March 24th, 2011
3:34 pm
Thank goodness! The corporate ownership is a joke! Let’s hope Ted Turner or Mark Cuban wants to buy the franchise and put the king of money into the team that it deserves!
russ
March 24th, 2011
3:38 pm
I asked Cuban at a Hawks game once if he would ever be interested in the Braves if his Cubs deal fell through. He said and I quote, “no chance in hell.” He grinned and walked away…
North Ave Trade School Hater
March 24th, 2011
3:41 pm
Yes, yes YES!