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95% reduction in revenue; employee salary cuts



“When we can’t have fans (at games), and with all the other effects COVID has on it, it creates a very difficult financial situation for us. We are very grateful that all of our organizations understand, but nonetheless it hasn’t been any easier. It was just a really difficult situation ”.

The wage cuts are expected to come in at least by the end of the year. Other costs are also reduced.

“We did our best to manage all our operating costs, given the fact that we have significantly less revenue,”

; Schiller said. “(From the very beginning of this, there was an active effort to manage all of our costs, and that has continued to this day and will continue until we exit. this”.

Brave players, like everyone else across the MLB, are being paid in full proportions for each game played. But with the regular season’s schedule being cut from 162 games to 60 games, they will receive no more than 37% of their contractual salary this year. Salaries for the Braves players, around $ 150 million for a full season, are currently projected to be around $ 55 million if 60 matches are completed.

As one of the few U.S. sports brands with publicly traded stocks, Braves is required to disclose financial information that most teams keep confidential. Monday’s revelations show drawing attention across the sports business landscape as the first public account of the pandemic’s financial impact on a team.

The Braves did not play a single match in the April-June quarter, compared with 85 (41 home games) in the same period last year. The Braves 2020 season was originally scheduled to start at the end of March, but the start time was delayed until July 24 because of COVID-19. Even though the games are currently being played, many sources of revenue – ticketing, franchising, parking, etc. – remain out of business as no fans are allowed into the stadium.

Liberty Media divides Braves’ revenue into two categories – from baseball and from real estate development in The Battery Atlanta. During the April-June quarter, baseball revenue plummeted 97%, down from $ 198 million in the same period last year to $ 5 million. Development revenue fell 40%, from $ 10 million to $ 6 million.

The delayed season, Liberty Media said, has “reduced all major sources” of baseball revenue. The decline in development revenue “was mainly due to the delay in rental income from certain tenants in the complex.”

As of June 30, the Braves had $ 718 million in debt, up from $ 698 million on March 31st. Much of the debt is related to the construction of Truist Park and The Battery. As of June 30, the Braves said that Braves “are not expected to comply with certain debt agreements” and “are in constant discussions with partners over active and debt relating to football field sponsorship to obtain covenant modifications and waivers. ”

Liberty also says that as of June 30, Braves has $ 329 million in cash liquidity, limited cash, cash equivalents, and revolving credit capabilities.

In the second quarter, Liberty reported that Braves operating expenses (excluding stock-based compensation) reached $ 37 million, down from $ 146 million in the same period last year. Liberty says the drop is largely due to the player’s salary and other expenses during the game day.

Please check back later today to learn more about this story.




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