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
Smokewagon
March 24th, 2011
3:48 pm
Buy me a beer!
DamntheButcher
March 24th, 2011
3:49 pm
Does anybody know if the people that own Chik Fil A have any intereste in the Brves? They are local and loaded with cash.
H.Berry
March 24th, 2011
3:50 pm
Can you say Arthur Blank?
deb
March 24th, 2011
3:51 pm
@ possible owner, I’m with You! The Braves can be owned by the fans like the Green Bay Packers! I LOVE that idea! Only we’ll need Mr. Blank to give us some training.
deb
March 24th, 2011
3:52 pm
@ Road Dawg, I like the David Dickie suggestion too! Another good one!
1969hotrod
March 24th, 2011
4:00 pm
sell the team to wild thing(Charlie Sheen for those not familiar with the movie Major League)! he’s got lots of cash, and has done a baseball movie, so what else is there? we could fill the stadium just on the hopes of him doing something strange.
steve
March 24th, 2011
4:01 pm
Please sell this team! Lets get some owners in here who actually give a flip about winning for a change.
JSS
March 24th, 2011
4:05 pm
@ Jeff Schultz…
Liberty Media is publicly held and traded, get enough shareholders together and get them to spin it off…
Oh, the shareholders meeting will be online on Thursday, June 24, 2010 9:00 am MT. You can find out all you want to know when they open the books to the shareholders in the annual report…
http://ir.libertymedia.com/phoenix.zhtml?c=61138&p=irol-eventDetails&EventId=3171957
Just signup for the webcast and take some NoDoz
The Real Brave
March 24th, 2011
4:06 pm
Where is the surprise here? Just a tax write-off.
With the exception of Arthur Blank we have carpet-baggers and wanna-bees as sports club
owners.
JSS
March 24th, 2011
4:11 pm
How many times do you have tell Atlanta sports fans that NFL owners can not cross own other Major Sports franchises in the same town? It is amazing! Paul Allen is only allowed to own the Blazers because there is no NFL team in Portland. Arthur Blank can not buy the Thrashers, the Braves, or Hawks, get over him…
raleighbravesfan
March 24th, 2011
4:11 pm
Liberty Media has been a better owner than Time Warner. They have been a much better owner than many teams, most of which are owned by individuals. Ask fans of Marlins, Pirates, Astros, etc. how that’s working for them. Also, Liberty has let the baseball people do their job, with little interference. Be careful what you wish for.
Jeff R
March 24th, 2011
4:13 pm
For the reasons Jeff Schultz stated, I wouldn’t be surprised to see Liberty Media try to sell the Braves after December. I would think that the condition of the economy then will be an important factor, however. I can’t imagine that Liberty would want to undersell the Braves. And, actually, Liberty Media hasn’t been a terrible owner; it’s been largely hands off.
The danger in a sale is who buys. Everyone wants another Ted Turner. But there’s also the possibility of a Peter Angelos, the dreadful Orioles’ owner who’s run a fine franchise into the ground. Or a sale to a conglomerate, where the suits aren’t so hands off.
Next winter should be interesting.
Jeff R
March 24th, 2011
4:17 pm
Does Arthur Blank still have the assets to purchase the Braves? If not, we shouldn’t be so eager to see Liberty Media sell (or assume that Blank is an automatic bidder). Sometimes the devil you know is better than the devil you don’t know.
Najeh Davenpoop
March 24th, 2011
4:19 pm
If there’s one thing I have learned over the years, it is that Forbes knows very little about sports.
With that said, the Braves compensate for an ownership group that isn’t willing to spend to the max by having a fantastic player development system, particularly when it comes to pitching. We should be thankful for that.
Drexel Gal
March 24th, 2011
4:39 pm
Forget Mark Cuban, Arthur Blank, and the recycled Ted Turner-Fonda. If you want local ownership, Truett Cathy of Chick-Fil-A is the candidate. Uh … except … that would mean no more Sunday games.
Anonmyous
March 24th, 2011
4:40 pm
Watch out for the Dickey Bros to make a play for the Braves.
Stinger2
March 24th, 2011
4:59 pm
Why does anyone think Arthur Blank or Ted Turner would want to buy the Braves. Has anyone who suggest such heard
either one of those two say they have any interest. I don`t understand why so many people throw names of rich people out without any basis for doing so.
I Saw It On TV
March 24th, 2011
5:01 pm
To the ownership Terry McGuirk is just another employee.
Jeff Schultz
March 24th, 2011
5:02 pm
Sorry folks — haven’t gotten to any of your comments because I’ve been writing, rewriting, expanding, interviewing, trimming — well, you get it. Final update now up (pending some final edits).
Dawg A
March 24th, 2011
5:02 pm
I have both Falcon and Braves season tickets! If Arthur buys them then I will not buy anymore season tickets! I am sick of him raising prices and now he expects his money for season tickets even though there is a lockout!
Oh yea I don’t have to keep my Falcon tickets but I lose the over 2,200 I have already paid! So no Arthur please!
kirkinga
March 24th, 2011
5:03 pm
I hope we get an owner with a passion to win, sense enough to let good baseball people run things, and has deep pockets to make the necessary investments.
I also hope the next owner jettisons McGuirk who is either clueless or has trouble telling the truth about payroll. Officials should never mislead fans even if that means fessing-up to lowering payroll.
Skeezix
March 24th, 2011
5:05 pm
I hope this rumor is true. I hate large corporate ownership of a MLB team. Liberty Media is a pimp and McGuirk their local puppet.
Sonny Clusters
March 24th, 2011
5:06 pm
We understand Wintes Investment Group is in talks with Liberty Media at this time. Not sure what that means yet but we will let you know. If Warren Buffett buys the team we hope he will build a Dairy Queen at the Ted. Could happen.
Hammond B3
March 24th, 2011
5:07 pm
time to ask for an increase on my visa and mastercard
Skeezix
March 24th, 2011
5:11 pm
It is not unusual for headquarters staffers of a large corporation to negotiate the sale of a piece of their business while keeping the management team that is actually running that business totally in the dark.
Paddy
March 24th, 2011
5:12 pm
So the Braves are not the asset that Liberty thinks is important. Keep talking like that and your fan base will start looking elsewhere to spend their entertainment dollar. Doubt you would ever hear Ted Turner say that about his old team.
Jeff, don’t mention the ASG any more. It just makes this town look so foolish.
Terry McGuirk
March 24th, 2011
5:13 pm
I am totally clueless.
What if?
March 24th, 2011
5:17 pm
what if the braves could be owned by the public (like the Green Bay Packers)???
Sonny Clusters
March 24th, 2011
5:17 pm
We was wondering will the Buck Commanders make a run at buying the Braves? Can you simagine what the Tool Race will turn into? We’ll see some deer running against some elk and some other stuff Buck Commanders shoot at and there will be some new concessions. Venison dogs and fries. Free admission if you bring in some deer toes.
Necromancer
March 24th, 2011
5:19 pm
Hallejuah, please, Lord in Heaven, let it be true!!!!!!
BravesFan27
March 24th, 2011
5:30 pm
Come Back TED!!!! Please rebuy the braves
Nateforpresident
March 24th, 2011
5:31 pm
This would mean the world to braves fans if its eitherMr Cuban or Mr Blank
Jeff Schultz
March 24th, 2011
5:45 pm
To all — Hate to smother your Arthur Blank dreams, but like I’ve said before I’m pretty sure that’s not happening. AMB’s priorities are getting a stadium for the Falcons and winning a Super Bowl. And with all of his time and money tied up in those two ventures, there’s no way he could (or would) purchase a baseball team.
Jeff Schultz
March 24th, 2011
5:47 pm
P.Bull Terrier — Charlie Sheen is buying a team? Great! I can’t wait for the press conference.
Jeff Schultz
March 24th, 2011
5:50 pm
JSS — Yes, the media often gets info out of those shareholders’ meetings, thanks.
Jeff Schultz
March 24th, 2011
5:57 pm
JSS — Actually, I think you’ve got the NFL cross-ownership rule wrong. Arthur Blank can own the Braves. But he CAN’T own the Yankees because it competes with NFL teams in another city. In other words, the NFL knows he’s not going to try to undercut his own NFL product (Falcons) but they can’t be certain he won’t try to undercut another city’s NFL team (Giants, Jets). Make sense? At least that’s how I understand cross-ownership rule. …. FYI: Stan Kroenke was allowed to be a minority-owner of the St. Louis Rams when he had majority ownership of NBA Nuggets and NHL Avalanche. But he was denied permission to a majority owner of the Rams (because Nuggets-Avalanche in competition with Broncos).
Bud
March 24th, 2011
6:01 pm
Oh, Mr Blank, where are you? The people of Atlanta want you to come to the rescue.
Thomas
March 24th, 2011
6:04 pm
“Liberty Media doesn’t consider the baseball team a strategic asset.” This is why they BLOW!
bfred
March 24th, 2011
6:20 pm
I’m pretty sure the way the tax benefits worked is that the Braves had accumulated losses that Liberty could acquire and use to offset its own tax liability up to the amount of those losses, over a certain period of time. So no one was really getting a “tax break” – if a company loses money, it can avoid paying taxes going forward until the cumulative earnings surpass the losses (very simply put).
But yeah, the expanding operating income over the last few years is a mirror image of the decline in payroll. An owner who would run the club break-even could take it right back to $100MM, which seems to be what this market can support.
And just because Ted’s worth $1.4MM doesn’t mean it’s buried out back somewhere. I’m betting most of that is real estate value. Try selling half of Montana in one transaction.
Hillbilly Deluxe
March 24th, 2011
6:35 pm
Sounds to me like they’re for sale.
ryan
March 24th, 2011
6:38 pm
McGuirk is full of crap its not up him Liberty has decided there going to sell the the team 2012 i think he worried his about his job Liberty does not want to own the Braves long term .
ryan
March 24th, 2011
6:44 pm
McGuirk does not get to decide whether the Braves are up for sale Liberty group does .
Mr. Baseball
March 24th, 2011
6:58 pm
CL @ 1:59pm is right. This “strategic asset” will be sold as soon as it is advantageous for Malone to do so. He has no loyalties to these fans, the city or the team. The fact that McGuirk does not know can be explained simply as “plausible deniability” – he’s not lying if he doesn’t know.
LTBF
March 24th, 2011
7:44 pm
I thought I was a sports fan but I guess not, what the heck is the Atlanta Spirit
D Man
March 24th, 2011
7:45 pm
Mr. Blank, please consider buying the Braves…
wins-by-a-link
March 24th, 2011
7:53 pm
This would be the best thing that could happen to the Braves and thier fans, Players and coaches, To get a set of owners that would put the amount of money necessary to secure a world series championship for the city of Atlanta and the southeast into the Braves organization would be great, I hope that this is more than rumor, The sale of the Braves to Liberty Media should never have been approved by Major league Baseball It was never in the best interest of Baseball or the Atlanta Braves and its Fans.
OldTimer
March 24th, 2011
7:55 pm
Liberty is a fine organization. They have no disrespect toward the Braves.
OldTimer
March 24th, 2011
7:56 pm
We should embrace Liberty as we do Freedom.
John Taylor
March 24th, 2011
8:00 pm
McGuirk has said repeatedly that HE sets the budget.
I.e., McGuirk is responsible for tying the hands of management in acquisition of good players.
What goes, Terry ole lad?
JSS
March 24th, 2011
8:08 pm
@ Jeff Schultz…
I stand corrected …
Jeff, you’re talking about the “Huizenga Rule” from 1997? If I remember it right, he owned the Dolphins and the Marlins (bought them in 1993), but he placed the Marlins in a trust Then he bought the Panthers. They voted in ‘97 to remove the 1967 prohibition. But only Huizenga and Paul Allen took advantage of it. None of the teams except the Marlins ever won a title; and then he gutted them…
Allen owns the the Sounders FC but he also had owned the Blazers before acquiring the Seahwks. There was a clause (the Hunt Clause) that allowed ownership in the NASL and its follow-up the MLS.
The difference in the Nuggets deal was that he sold his majority interest outright to his son’s new ownership group. And yes, you can be a minority owner across a regional conflict. But they majority ownership deal is you must divest majority ownership in another league if you’re buying into the NFL. The old Denver Nuggets and Avalanche owner Stan Kroenke had to sell out to his son’s Josh investor group before the Rams deal was finalized… That was the sticking point…
But Stan Kroenke is worth $2.9 billion. Paul Allen is worth $12.7 billion, and Arthur Blank is supposedly $1.2 billion… That is a huge difference… So Stan Kroenke and Allen also own Pepsi Center and The Rose Garden too? So where does Blank get $500 million while he is begging poverty not to spend a nearly equal amount on a stadium without public assistance? Just asking…