95% drop in income; employee pay cuts

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“When we can’t have fans (at the games), and with all the other impacts that COVID brings, it creates a very difficult financial situation for us. We’re grateful that our entire organization understands, but that doesn’t help matters nonetheless. It’s just a really tough situation.

The pay cuts should be in place at least until the end of the year. Other expenses have also been reduced.

“We have done our best to manage all operational expenses down, given that we have a lot less revenue,” said Schiller. “(Since) the very beginning of this, there has been an aggressive effort to manage all of our expenses, and it has continued to this day and will continue until we come out of it.

Courageous players, like others in MLB, receive their full salary on a pro rata basis for each game played. But with the regular season schedule reduced from 162 games to 60, they won’t be getting more than 37% of their contract pay this year. The Braves’ player payroll, which was expected to be around $ 150 million for a full season, is currently expected to rise to around $ 55 million if 60 games are completed.

As one of the few U.S. sports franchises to have publicly traded stocks, the Braves are required to disclose financial information that most teams keep private. Monday’s revelations are expected to attract attention in the sports business landscape as the first in-depth public account of the financial impact of the pandemic on a team.

The Braves did not play a game between April and June, compared to 85 (41 at home) in the same period last year. The Braves’ 2020 season was originally scheduled to start in late March, but the start has been delayed until July 24 due to COVID-19. While games are currently being played, there are many sources of income – ticket sales, concessions, parking, etc. – remain closed because no public is allowed in the stadiums.

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

The delay in the season has resulted in an “all primary source reduction” in baseball revenue, Liberty Media said. The drop in development income “is mainly explained by the deferral of rental income from certain tenants to mixed-use development”.

As of June 30, the Braves were in debt of $ 718 million, up from $ 698 million on March 31. Most of the debt is related to the construction of Truist Park and The Battery. Liberty Media said that as of June 30, the Braves “were required to breach certain covenants” and were “in ongoing discussions with counterparties to its operating credit facilities and core debt to obtain waivers and modifications of restrictive covenants ”.

Liberty also said that as of June 30, the Braves had $ 329 million in cash, restricted cash, cash equivalents and revolver credit capacity.

In the second quarter, Liberty reported that the Braves’ operating expenses were $ 37 million, up from $ 146 million in the same period last year. The reduction was largely attributed to player salaries and other game-day expenses.

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



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