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BATRA - The Liberty Braves Group


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I got 1% of my oversubscription request. Or 6.5% of subscription. Seems like the allocation was based on subscription size, not on oversubscription size.

 

Unfortunatly, that appears to be the case and I don't get any shares. I only owned a few BATRA shares but signed up for several thousand more. Didn't work this time, but one can try.

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Thanks RD

 

Analyst is pegging most of the value from revs increase due to the new stadium in 2017.  Commercial RE value seems reasonable but the 1/30 of MLBAM seems a bit much.  $3B for BAMTECH is an established valuation based on Disney's minority investment and option but valuation on MLBAM and the websites they own and MLB content seems steep.

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Has anyone figured out how any monetization of BAM flows to the Braves?  Seems entirely unclear to me.

 

Are there BAM revenues/net income embedded within the Braves line item?  Did the Braves receive a check for the sale of equity recently sold?  Or is this all just theoretical ownership of equity that remains situated at the MLB level until fully sold off?

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Has anyone figured out how any monetization of BAM flows to the Braves?  Seems entirely unclear to me.

 

Are there BAM revenues/net income embedded within the Braves line item?  Did the Braves receive a check for the sale of equity recently sold?  Or is this all just theoretical ownership of equity that remains situated at the MLB level until fully sold off?

 

I believe it is the latter. No direct monetization, just ownership of the MLB equity. To the best of my knowledge, BAM revenues do not flow through the Braves.

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Agree, but I believe that would have been taken into account in the Forbes valuation.

 

My point being, this proves out the Clippers effect. There are a limited number of major sports franchises and when they do sell they typically sell at a huge premium to any justifiable valuation based on economics.

 

The Marlins, with the exception of maybe Tampa, have the worst fanbase and I would guess one of the worst RSN ratings of any MLB Team.

 

Braves have a huge regional following due to many years of all games being broadcast nationally on TBS during their glory days.

 

Add a new state of the art stadium and if team actually turns it around in the field (last year minor league system was ranked #2) value should be a multiple of the Marlins and top 10 in the MLB in excess of $2B.

 

Now if Liberty can only figure out a tax efficient way to realize this since they have such a low basis.

 

 

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Is there a tax efficient way to sell this while still maximizing price? The usual Liberty playbook seems to be to sell for shares, bit the best buyer here is a prestige and tax motivated buyer who is personally willing to overpay (Steve Ballmer).

 

Is it possible to trade it tax free for shares the buyer already owns? IE, sell to Zuckerberg for Facebook shares (or whoever, just an example)

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I sold my original position in the high 20s and hopped back in today. Love the price down here in the 13-14 range and Gabelli is on record that Liberty won't sell for less than $42. You've got the new stadium, a playoff team with youth and arguably the most exciting young player in baseball.

 

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