Atlanta Braves Holdings, Inc. - Series A · NASDAQ:BATRA
Atlanta Braves Holdings, Inc. - Series A — Liberty Braves Group — Investor Day (April 2016)
51 slides from Atlanta Braves Holdings, Inc. - Series A's investor day presentation, Apr 21, 2016
Slide 1: Liberty Braves Group
Liberty Braves Group April 21, 2016
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about the distribution of subscription rights and the subsequent rights offering, the anticipated benefits of the
Slide 3: Introducing the Liberty Braves Group
Introducing the Liberty Braves Group • What are we tracking? • Atlanta Braves baseball team • Liberty Media took ownership in 2007 • Exchanged 68.5m shares of TWX for the Atlanta Braves, Leisure Arts and $960m in cash • Forbes value $458m at time of exchange; Liberty’s basis inherited from Time Warn
Slide 4: Tracking Stocks
Tracking Stocks 101 noun | track-ing-stock • What are tracking stocks? • Tracking stocks allow investors to invest in the performance of a specific subset of Liberty Media’s assets and liabilities • Rationale for tracking stock restructuring • Aim to reduce trading discount to NAV at which Liberty M
Slide 5: Introducing the New Atlanta Braves Ballpark and Mixed-Use Development
Introducing the New Atlanta Braves Ballpark and Mixed-Use Development • In 2014, Braves purchased 82 acres of land for SunTrust Park and The Battery Atlanta • Braves retain title to all land excluding approximately 16-acre portion underlying Ballpark conveyed to Cobb-Marietta Coliseum & Exhibit Hall
Slide 6: Ballpark Project to Enhance Braves Value
Ballpark Project to Enhance Braves Value • Past Experience shows that new ballparks typically see significant increase in revenue driven by increased premium offerings which increase per capita revenue 1. Long-term sponsorship agreement with SunTrust Bank for exclusive naming rights to the ballpark
Slide 7: Liberty Braves Group Summary Organizational Structure
Liberty Braves Group Summary Organizational Structure Tracking Stocks: Braves Entity Liberty 1) Liberty Media Group With Debt at Media 2) Liberty SiriusXM Group Project Completion Corporation 3) Liberty Braves Group 100% All assets and liabilities attributed to Liberty Braves Group Braves Holdings,
Slide 8: Summary of Revenue Streams
Summary of Revenue Streams National Media MLBAM Other League- Local Media Ballpark Revenue Wide Revenue Revenue Revenue • TBS • MLB.TV • All-Star Game • Television • Tickets • FOX • MLB.com • Licensing & • Cable • Premium Seating • ESPN • At Bat 12 Sponsorship • Radio • Concessions & Merchandising •
Slide 9: Ballpark and Mixed-Use Facility Financing
Ballpark and Mixed-Use Facility Financing Funding for Braves development Estimated Ballpark Sources and Uses • SunTrust Park Sources ($m) Uses ($m) • $392m in funding from Cobb County and various Liberty Braves debt funding (1) $330 Stadium cost $672 other local entities Municipal bond funding 368 O
Slide 10: Summary of Existing and Incremental Ballpark Financing
Summary of Existing and Incremental Ballpark Financing Ballpark Financing ($ in millions) Other Municipal Municipal Total Bond Funding Ballpark Cost Funding $24 $368 Liberty Braves $722 StadCo Debt $255 Liberty Braves StadCo Debt(1) $75 12/31/15 Completion Incremental Funding (1) Includes $35m drawn
Slide 11: Summary of Existing and Incremental Mixed-Use Financing
Summary of Existing and Incremental Mixed-Use Financing Mixed-Use Financing ($ in millions) Third Party Total Mixed-Use Equity Facility Cost Liberty Braves Equity(2) $68 Liberty Braves $114 Project Level Debt $558 $290 Liberty Braves Equity(1) $86 12/31/15 Completion Incremental Funding (1) In Q4-15
Slide 12: Proposed Rights Offering to Provide Additional Liquidity
Proposed Rights Offering to Provide Additional Liquidity • Potential for additional liquidity through subscription rights to acquire Series C common stock of Liberty Braves Group • Expect to conduct ~$200m rights offering similar to rights offering following Liberty Broadband spin-off • Subscription
Slide 13: Liberty Braves Group Financial Summary
Liberty Braves Group Financial Summary Liberty Braves Group Total Revenue Liberty Braves Group Adjusted OIBDA(1) $ in millions $ in millions $260 $42 $250 $243 $22 $225 $3 ($6) (2) 2012 2013 2014 2015 2012 2013 2014 2015 (1) Adjusted OIBDA calculated as revenue less operating expenses and SG&A (excl
Slide 14: Appendix
Appendix
Slide 15: Indicative NAV for Liberty Braves Group at Project Completion
Indicative NAV for Liberty Braves Group at Project Completion Liberty Braves Group: Key Assets and Liabilities $ in millions Atlanta Braves Forbes Valuation(1) $1,175 (1) For illustrative purposes, Forbes enterprise valuation as of March 2016. Includes value of new ballpark, but excludes Mixed Use D
Slide 16: Liberty Braves Group Total Debt
Liberty Braves Group Total Debt ($ in millions) Debt as of 12/31/15 Total Capacity Outstanding $200 TeamCo Debt $178 InterCo MLB League Wide Credit Facility $100 $70 $160 $31 Line of Credit SunTrust Revolver 75 42 $35 Stadium Loan Ballpark Debt $120 Stadium Loan 345 35 SunTrust $42 Mixed-Use Loan 20
Slide 17: Reconciling Schedule
Reconciling Schedule This presentation includes a presentation of adjusted OIBDA, which is a non-GAAP financial measure, for Liberty Braves Group, together with a reconciliation to that group’s operating income, as determined under GAAP. Liberty Media Corporation defines adjusted OIBDA as revenue le
Slide 18: Liberty Braves Group Investor Day April 2016
LIBERTY BRAVES GROUP INVESTOR DAY APRIL 2016
Slide 19: Disclaimer
Disclaimer Braves Holdings, LLC (the “Company”) and its directors, officers, employees, affiliates, agents, advisors and representatives (collectively, “Associates”) make no representation or warranty, express or implied, as to the accuracy or completeness of the information in this presentation or
Slide 20: Agenda
Agenda I. Welcome and Introductions II. Project Details III. Ballpark Overview IV. Mixed-Use Overview V. Q&A 3
Slide 21: Introductions
Slide 22: Deep Bench of Management Talent
Deep Bench of Management Talent Terry McGuirk, Chairman and CEO Terry McGuirk has been the Chairman and CEO of the Braves since 2001. Mr. McGuirk also served as the President of the Braves from 2003 to 2007. From 1996 to 2001, he served as Chairman and Chief Executive Officer of Turner Broadcasting
Slide 23: Deep Bench of Management Talent (cont'd)
Deep Bench of Management Talent (cont’d) John Hart, President of Baseball Operations John Hart was promoted to President of Baseball Operations for the Braves on October 23, 2014. Mr. Hart has been with the Braves since 2013, after careers with the Texas Rangers, Cleveland Indians and Baltimore Orio
Slide 24: Braves History Dating back to 1871
Braves History Dating back to 1871 As one of the National League’s two remaining original charter franchises, the Braves organization was founded in 1871 and stands as the oldest continuously playing team in major North American sports Long-Standing Franchise Fundamentals On Field Success • Consiste
Slide 25: Project Details
PROJECT DETAILS
Slide 26: Introducing SunTrust Park & The Battery Atlanta
Introducing SunTrust Park & The Battery Atlanta • Braves are currently under a 20 year lease with Turner Field which will be terminated in 2016 – Due to aging infrastructure of Turner Field, lease renewal would have required $150m in routine and capital improvements and an additional $100m to really
Slide 27: Construction Timeline
Construction Timeline Ballpark and Plaza construction complete in time Construction begins on for Opening Day Entertainment deck within Development, Restaurants under Project breaks Ballpark bowl fully Construction begins Project timeline is Braves Office Complex Office / ground excavated on Suite A
Slide 28: Our Business
Our Business Braves derive revenues from three primary sources: 1) Ballpark operations (tickets, concessions, corporate sales, suites and premium seat fees) • Average 2.4m tickets sold per season since 2007 • Per ticket average price of 2016 full-season ticket: $5 - $70(1) • Per ticket average price
Slide 29: Stadium Financing Overview
Stadium Financing Overview • Financing for SunTrust Park to come from: – $345m multi-draw Senior Secured Construction Term Loan (closed in conjunction with raising $392m of public funding in September 2015) – $368m municipal funding from Cobb-Marietta Coliseum and Exhibit Hall Authority – $10m from
Slide 30: Comprehensive Project Risk Mitigation
Comprehensive Project Risk Mitigation Seasoned project partners (architect, general contractor and owners’ representative) Guaranteed max contract (GMP(1) from contractors for Ballpark and each component of mixed-use) Comprehensive insurance program covering construction and operating stages Standar
Slide 31: Experienced Project Management Team
Experienced Project Management Team Jones Lang LaSalle (“JLL”) is the project manager for both SunTrust Park and mixed-use development. JLL is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and
Slide 32: Lease Structure
Lease Structure Term/Extension Rights • Term of the Stadium Operating Agreement (“SOA”) is 30-years through 2046 • Braves have right to extend term for an additional five years through 2051 Operating Rights • Subject to Cobb County’s rights to conduct up to three special events per year, Braves have
Slide 33: Ballpark Overview
Ballpark Overview
Slide 34: SunTrust Park Features and Amenities
SunTrust Park Features and Amenities • 41,500 seats • 90-foot roof • Enhanced suites and premium seating • SunTrust Club • Delta Sky360 Club • Kids’ zone • Coors Light Chop House • Braves History • Hi-speed Wi-Fi internet throughout park • Expected open for 2017 baseball season 17
Slide 35: SunTrust Park Built with a Focus on Enhancing the Fan Experience
SunTrust Park Built with a Focus on Enhancing the Fan Experience • The location of SunTrust Park will be situated in the heart of Planned Transportation Improvements “Braves Country”, where the ticket-purchasing fan concentration is the most dense • SunTrust Park will be significantly smaller than T
Slide 36: Favorable Market Demographics
Favorable Market Demographics Greater Atlanta MSA Global Headquarters Based in Atlanta FORTUNE Revenues Rank (billions) 33 $83.2 5.6 Million residents in greater Atlanta area 47 $58.2 63 $46.0 3rd In Fortune 500 companies headquartered within the city 73 $40.4 163 $18.5 199 $15.3 7th Highest median
Slide 37: New Ballpark with Modern Amenities
New Ballpark with Modern Amenities Ballpark Comparison Increased offering of premium seating with an array of SunTrust Park Turner Field amenities provides for a unique and improved Seating Distribution experience for Braves’ fans Premium Seating 3,800 163 Suites 600 1,386 Other Lower Level 17,500 1
Slide 38: Sponsor Sales
Sponsor Sales • The Braves have sponsorship agreements with the following partners, among others: – SunTrust (naming rights partner) – Coca-Cola – Chick-fil-A – Delta – Miller Coors – Comcast – Napa Auto Parts • Our sponsorship contracts have an average length of over 10 years with approximately 3%
Slide 39: Mixed-Use Overview
Mixed-Use Overview
Slide 40: The Battery Atlanta Overview
The Battery Atlanta Overview • The new home of the Braves will be located in a brand new mixed-use development that will feature SunTrust Park as its central fixture • The Braves envision the development as a sought-after location delivering unique shops, restaurants and entertainment venues, that f
Slide 41: Other Mixed-Use Projects
Other Mixed-Use Projects 1060 Project Ballpark Village Anchor Tenant: Wrigley Field Anchor Tenant: Busch Stadium Team: Chicago Cubs Team: St. Louis Cardinals Estimated Opening: 2016 Opening: 2014 Downtown Commons L.A. Live Anchor Tenant: Golden 1 Center Anchor Tenant: Staples Center Team: Sacramento
Slide 42: Joint Venture Structural Summary
Joint Venture Structural Summary • Braves control the development through a series of majority controlled JV structures with industry experts for each development – Retail – 85% Braves / 15% JV Partner – Multifamily – 85% Braves / 15% JV Partner – Office – 100% Braves – Hotel – 50% Braves / 50% JV P
Slide 43: The Battery Atlanta Plan Site
The Battery Atlanta Plan Site 26
Slide 44: The Battery Atlanta Aerial
The Battery Atlanta Aerial 27
Slide 45: Key Tenants & Partnerships
Key Tenants & Partnerships Comcast Office Space: 250,000 sq. ft. Omni Hotel: 250,000 sq. ft. Source: atlanta.braves.mlb.com Source: atlanta.braves.mlb.com • In March 2015, the Braves and Comcast announced a • In April 2015, the Braves and Omni Hotels & Resorts multi-year technology and real estate p
Slide 46: Key Tenants & Partnerships (cont'd)
Key Tenants & Partnerships (cont’d) Entertainment Block: ~130,000 sq. ft. | Featuring Roxy Theatre: 53,000 sq. ft. Source: atlanta.braves.mlb.com Source: atlanta.braves.mlb.com • The Braves and concert promoter Live Nation struck a deal in July 2015 to develop and manage a long-planned entertainment
Slide 47: Key Tenants & Partnerships (cont'd)
Key Tenants & Partnerships (cont’d) Retail: 375,000 sq. ft. Residential: 500,000 sq. ft. Source: atlanta.braves.mlb.com Source: atlanta.braves.mlb.com • 4 total blocks: 3 under residential and 1 standalone • 531 residential high-end apartment units • Large format tenants • 61 high-end studio apartme
Slide 48: Experienced Development Team
Experienced Development Team Braves Development Company - is solely owned by Braves Holdings, LLC, which is solely owned by Liberty Media Corporation. Liberty Media Corporation, through Braves Holdings LLC, also owns the Atlanta Braves National League Baseball Club, LLC (baseball team known as the “
Slide 49: Appendix
APPENDIX
Slide 50: The Battery Atlanta Team
The Battery Atlanta Team Overall Development Management: Jones Lang LaSalle • Global real estate services firm acting as overall development and transactions advisor plus ballpark project management Retail: Fuqua Development • National retail development firm specializing in complex urban mixed use,
Slide 51: The Battery Atlanta Team (cont'd)
The Battery Atlanta Team (cont’d) Landscape and Hardscape Architect: HGOR • Designer of plaza fountains, landscaping and hardscaping Environmental Graphics: Selbert Perkins • Designer of all signage and graphics outside of ballpark footprint Civil Design and Site Entitlement Assistance: Kimley-Horn