Q4 2024 Atlanta Braves Holdings Inc Earnings Call - Q&A
Greetings and welcome to the Atlanta Braves Holdings, Q4, and year end 2024 earnings call at this time, all participants pretty listen only mode.
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Speaker Change: Now my pleasure to trying to pull over to Kevin Rudd, Vice President of Investor Relations. Kevin. Please go ahead.
Cameron Rudd: Good morning. Before we start, we would like to begin by reminding everyone that on today's call, management's prepared remarks may contain forward-looking statements. Forward-looking statements address matters that are subject to risks and uncertainties that may cause actual results to differ from those discussed today. A number of factors could cause actual results to differ materially from those anticipated, including those set forth in the risk factors section of our annual and quarterly reports filed with the SEC. Forward-looking statements are based on current expectations, assumptions, and beliefs, as well as information available to us at this time and speak only as of the date they are made. Management undertakes no obligation to update publicly any of them in light of new information or future events. During this call, we will discuss certain non-GAAP financial measures, including adjusted OIBDA.
Kevin Rudd: Good morning.
Speaker Change: I'd like to begin by reminding everyone that at all.
Kevin Rudd: Pardon me.
Kevin Rudd: Forward looking statements address matters that are subject to risks and uncertainties.
Kevin Rudd: And may cause actual results to differ from those discussed.
Kevin Rudd: Okay.
Kevin Rudd: A number of factors could cause actual results to differ materially.
Kevin Rudd: Including those set forth in the risk factors section.
Kevin Rudd: Quarterly reports filed yet.
Kevin Rudd: Or are we looking statements are based on current expectations assumptions and beliefs as well as information available.
Kevin Rudd: As of the date and.
Kevin Rudd: Management undertakes no obligation to update publicly any of them apply to new information or future events.
Kevin Rudd: During this call, we'll discuss certain non-GAAP financial measures adjusted OIBDA.
Cameron Rudd: The full definition of these non-GAAP financial measures and reconciliation to the comparable GAAP financial measures are contained in the Form 10-K and earnings press release available on the company's website. Now, I'd like to turn the call over to Terence McGuirk, Chairman, President, and CEO of Atlanta Braves Holdings.
Kevin Rudd: Definitions.
Kevin Rudd: The financial measures and reconciliations to comparable GAAP financial measures are contained in the Form 10-K and earnings press release available on the company's website.
Karen Bergman: Now I'd like to turn the call over to Karen Bergman, Chairman, President and CEO of Atlanta.
Terence McGuirk: Good morning and welcome to the Atlanta Braves Holdings, Inc. Q4 and full year 2024 earnings call. We are excited about the 2025 season, where spring training is well underway in North Port, Florida. I've spent some time in camp watching our team prepare, and I am impressed by what I have seen. Our players arrived in camp on 11 February, ready to work hard and compete for another World Series ring this season. With opening day only 29 days away, our entire business and baseball operations teams are working hard to make sure we are ready both on and off the field. We kick off the season on 27 March in San Diego, and we will welcome fans for the home opener at Truist Park on 4 April when we take on the Miami Marlins. We welcomed all-star outfielder Jurickson Profar to the Atlanta Braves last month.
Karen Bergman: Good morning, and welcome to the Atlanta Braves Holdings fourth quarter and full year 2024 earnings call.
We are excited about the 2025 season, where spring training is well underway in north Port Florida.
Karen Bergman: Spent some time in watching our team prepare.
Karen Bergman: Pressed by what I've seen.
Karen Bergman: Our players arrived at.
Karen Bergman: February 11th.
Karen Bergman: Ready to work hard.
Karen Bergman: For another World series Spring.
Karen Bergman: Susan.
Speaker Change: With opening day, only 29 days away our entire business and baseball operations teams are working hard to make sure we are ready both on and off the field.
We kicked off the season on March 27 in San Diego, and we will welcome fans for the home opener and truest part on people or when we take on the Miami Marlins.
Speaker Change: We welcomed all star outfielder jerks in cohorts of the Atlanta Braves last month.
Terence McGuirk: He was one of the top free agents on the market. We can't wait to see him in our lineup every night. We're excited to get our top talent back this season following injuries last year, namely Ronald Acuña Jr., Austin Riley, Spencer Strider, Michael Harris II, Ozzie Albies, and Sean Murphy are all healthy and well on their way to being back on the field. We feel that with so many of our players returning, we are starting the season with a fresh roster and lineup, which positions us well to compete deep into October. We remain confident in the talent up and down our roster and our ability to compete and win at the highest level. This July, we will host the Major League Baseball All-Star Game, where we will showcase Atlanta, Truist Park, and The Battery Atlanta to baseball fans from around the world.
Speaker Change: One of the top three agents on the market.
Speaker Change: Can't wait to see them in our lineup every night.
Speaker Change: We're excited to get our top talent back. This season following injuries last year, namely Ronald <unk> Austin Riley Spencer Strider, Michael Harris <unk>, Sean Burke.
Speaker Change: Are all healthy and well on their way to being back on the field.
Speaker Change: We feel that with so many of our players returning we're starting the season with a fresh roster and lineup, which positions us well to compete deep into October.
Speaker Change: We remain confident Alan up and down our roster and our ability to compete and win at the highest level.
Speaker Change: This July we will post the major League baseball all Star game.
Speaker Change: We will showcase Atlanta Truth Park in the battery Atlanta.
Speaker Change: Both bands around the world. It is a tremendous honor for the brief to be selected as the host T.
Terence McGuirk: It is a tremendous honor for the Braves to be selected as the host team. Our leadership and staff are working tirelessly alongside MLB to ensure we provide fans with the best possible experience here in Atlanta. We set out each and every year to achieve the same goal: to compete for and win the World Series. We are excited about the year ahead, both on and off the field. We continue to work hard to ensure that we provide a world-class experience in the ballpark and The Battery Atlanta for all fans. As always, we hold ourselves to the highest standards to benefit our fans, our partners, and you, our shareholders. Now I will turn it over to Derek Schiller and Mike Plant, who will walk you through the results from the quarter.
Speaker Change: Our leadership and staff are working tirelessly alongside MLP to ensure we provide fans with the best possible.
Speaker Change: You are in Atlanta.
Speaker Change: We set out each and every year to achieve the same goal to compete for and with the World series.
Speaker Change: We're excited about the year ahead, both on and off the field.
Speaker Change: Continue to work hard to ensure that we provide a world class experience in the ballpark and the battery Atlanta for all fans.
Speaker Change: As always we hold ourselves to the highest standards benefit our fans are partners and you our shareholders.
Speaker Change: Now I will turn it over to Derek Schiller and mine plant will walk you through the results from the quarter.
Derek Schiller: Thanks, Terry, and good morning to all. I'd like to touch on a few recent updates since our last quarterly call. First, as we look to the start of the season, we are in an excellent position. The reemergence of Diamond Sports Group from bankruptcy into a new entity, Main Street Sports Group, is an important development for the Braves. While we'll not get into any specifics of the partnership, we are pleased with the outcome as it gives stability to the FanDuel Sports Network and certainty for our fans' ability to watch Braves games throughout our territory. As part of this partnership, FanDuel Sports Network acquired the streaming rights for the Atlanta Braves and will, for the first time, give fans access to stream games through its FanDuel Sports Network app.
Derek Schiller: Thanks Terry.
Speaker Change: I'd like to touch on a few pieces.
Derek Schiller: Updates since our last quarterly call.
Derek Schiller: First as we looked at the start of the season.
Speaker Change: Excellent position reemergence.
Derek Schiller: From bankruptcy.
The main street sports important development was great.
Derek Schiller: I will not go into the specifics of the partnership.
Derek Schiller: Yeah.
Derek Schiller: Okay.
Speaker Change: Towards newer and certainty and stability what rates do Robert Baird.
Speaker Change: Part of this partnership supports that were required to streaming rights for the Atlanta Braves and will for the first time.
Speaker Change: <unk> access remains.
Speaker Change: Room to.
Speaker Change: It's Dan.
Speaker Change: Our.
Derek Schiller: The goal has always been to increase the viewing opportunities for our growing fan base, and we believe this new partnership does exactly that. In addition to our broadcast partnership with FanDuel, we announced in December a multi-year partnership with Gray Media. Beginning this year, Gray Media will independently produce and air 10 spring training games, and also simulcast 15 regular season games alongside FanDuel Sports Network. This partnership makes Braves baseball even more available, allowing fans throughout Braves country to watch games on TV. Gray Media is the nation's largest owner of top-rated local television stations and digital assets and represents a first of its kind experience for fans to access Braves games through a new platform. Overall, the fan-Network and Braves media partnerships will lead to increased viewership opportunities for our fans.
Speaker Change: The goal has always been to increase what do you mean opportunities for <unk>.
Speaker Change: And believe this partnership does exactly that.
Speaker Change: In addition to our broadcast partnership with Andrew We announced in December a multiyear partnership with Raytheon.
Speaker Change: Again in this year's breakthrough independently produced near <unk>.
Speaker Change: And also some of them got 50 regular season games alongside.
Let's do one.
Speaker Change: This partnership makes Braves baseball, you've been more available, allowing fans throughout the country to walk people on television.
Speaker Change: <unk> is the nation's largest owner operated local television stations and digital assets represents a first of its kind experience.
Speaker Change: Access revenues through new platform overall.
Speaker Change: Overall, the tangible sports network and Great media partnership.
Speaker Change: Opportunities for our business.
Derek Schiller: Most importantly, we are excited that this will allow everyone across Braves country the ability to view our games for the very first time. Turning now to some updates to Truist Park and the surrounding area. In November, we reaffirmed our dedication to our youngest fans in Braves country with the new Children's Healthcare of Atlanta Park. Located in the left field plaza between Truist Park's left field gate and third base gate, this 30,000 square foot family space will measure over two times the size of the existing Coca-Cola and Willville Sandlot. The new Children's Healthcare of Atlanta Park will open on game days and be accessible from The Battery Atlanta for non-game day events and activities. Inside Truist Park, we are excited to announce a new food hall named the Outfield Market, which will be populated with some of the top offerings from across the Southeast.
Speaker Change: Most importantly, we are excited that this will allow everyone across Britain countries the ability to view our views for the very first time.
Speaker Change: Turning now to some updates.
It's far from the surrounding area.
Speaker Change: In November we reaffirmed our dedication towards younger spans the country.
Speaker Change: The new children's healthcare of the park.
Speaker Change: Located in the left field plaza between each risk parks.
Speaker Change: And the third phase.
Speaker Change: This 30000 square foot family space will measure over two times the size of the existing hoping will stand alone.
Speaker Change: A new children's healthcare of Atlanta Park will open on game days.
Speaker Change: First what was the battery Atlanta or non game day events and activities.
Speaker Change: And such risk part we are excited to announce a new food hall named the outdoor market, which will be populated with some of the top offerings from across the southeast.
Derek Schiller: This is another example of our commitment to providing a best-in-class experience for our fans here at Truist Park. I'd like to turn the call over to Mike Plant, President and CEO of Braves Development Company, to discuss updates to The Battery Atlanta.
Speaker Change: This is another example of our commitment to providing the best in class experience for our fans.
Speaker Change: <unk> Park.
Mike: Next I would like to turn the call over to Mike <unk>, President and CEO, Brent public company to discuss updates to the battery Atlanta.
Mike Plant: Thanks, Derek. I wanted to start by saying we continue to be incredibly proud of The Battery Atlanta's expansion and success. In 2024, The Battery saw a total of 8.7 million visitors throughout the year, helping to generate more than $130 million of retail revenue for our tenants. On average, our visitors frequented The Battery over 2.4 times, with an average dwell time of 165 minutes per visit. While metrics were impacted by 3 fewer Braves home games, as well as 2 fewer concerts at Truist Park in Q4 2024 compared to the prior year, we are encouraged by the year-over-year growth. Notably, The Battery Atlanta is a flagship destination even outside of baseball games. Unlike nearly all other professional sports venues, we have benefited of The Battery Atlanta being a year-round attraction that draws visitors regardless of the season.
Speaker Change: Thanks, Derrick I wanted to start by saying, we continue to be incredibly proud of the battery Atlanta expansion and success in 2020 for the battery saw a total of $8 7 million visitors throughout the year, helping to generate more than 130 million of retail revenue for our <unk>.
Mike: Tenants on average our visitors frequented the battery over 2.4 times with an average dwell time.
Mike: About 165 minutes per visit.
Mike: While metrics were impacted by three fewer Braves home games as well as two fewer concerts at Jewish Park in the fourth quarter of 2024 compared to the prior year. We are encouraged by the year over year growth.
Mike: Notably the battery Atlanta is a flagship destination, even outside of baseball games.
Mike: Unlike nearly all other professional sports venues, we have benefited of the battery Atlanta being a year round attraction that draws visitors regardless of the season as an example for our new year's Eve celebration, we hosted over 46000 visitors in the battery Atlanta highlighting.
Mike Plant: As an example, for our New Year's Eve celebration, we hosted over 46,000 visitors in The Battery Atlanta, highlighting its appeal to our fans and the city of Atlanta. The Battery Atlanta continues to attract top brands and franchises, and our footprint and access to fans gives us a unique advantage as we look to partner with tenants. This quarter, we announced that Shake Shack will be coming to The Battery, featuring the first full bar in the United States, and Walk-On's Sports Bistreaux, co-owned by former NFL quarterback Drew Brees, is set to open in The Battery this summer. We're also nearing the completion of the 250,000 sq ft Five Ballpark Center, which will soon serve as the national headquarters for Truist Securities here at The Battery Atlanta.
Mike: Appeal to our fans and the city of Atlanta.
Mike: The battery Atlanta continues to attract top brands and franchises and our footprint and access to fans gives us a unique advantage as we look to partner with tenants.
Mike: This quarter, we announced that shake shack will be coming to the battery featuring the first full bar in the United States.
Mike: And walk ons sports Bistro co owned by former NFL quarterback drew Brees is set to open in the battery this summer.
Mike: We're also nearing the completion of the 250000 square foot five ballpark center, which will soon serve as a national headquarters for true Securities here at the battery Atlanta.
Mike Plant: The facility features a 42,000 sq ft trading floor and will accommodate roughly 1,000 new employees coming to our campus. We also expect Truist Securities to begin its occupancy in H1 2025. With that, I'll turn things over to Jill Robinson to discuss the company's financials.
Mike: The facility features a 42000 square foot trading floor and will accommodate roughly 1000, new employees coming to our campus.
Mike: We also expect through securities to begin its occupancy in the first half of 2025.
Mike: And with that I'll turn things over to Jill to discuss the Companys financials.
Jill Robinson: Before I begin, I want to remind everyone that a majority of our revenue is seasonal and is aligned to the baseball season. Given our final 2024 home game was in the Q3, we did not have year-over-year comparable revenue in the Q4. Total revenue was $52.1 million and $662.7 million in the Q4 and full year 2024 respectively. This was down from $67.7 million in the Q4 2023, up from $640.7 million for full year 2023. The quarterly decline was driven mainly by the absence of any home games or concerts in the Q4 2024, compared to 3 home games, including post-season, and 2 concerts held in the Q4 2023. As a reminder, the company manages its business based on the following reportable segments: Baseball and Mixed-Use Development.
Jill: Before I begin I want to remind everyone that a majority of our revenue is seasonal and is aligned to the baseball season.
Jill: Given our final 2024 home game within the third quarter, we did not have year over year comparable revenue in the fourth quarter.
Jill: Total revenue was $52 1 million and $662 7 million in the fourth quarter and full year 2024, respectively.
Jill: This was down from $67 7 million in the fourth quarter of 2023, but up from $640 7 million for full year 2023.
Jill: The quarterly decline was driven mainly by the absence of any home games, our concerts in the fourth quarter of 24 compared to three home games, including first season and two concerts held in the fourth quarter of 2023.
Jill: As a reminder, the company manages its business based on the following reportable segment.
Jill: Baseball and mixed use development.
Jill Robinson: For baseball, revenue was $595.4 million in 2024, up from $581.7 million in 2023. This revenue increase was driven by a combination of baseball event revenue and broadcasting revenue. Baseball revenue increased due to new sponsorship agreements and contractual rate increases on season tickets, partially offset by reduced attendance at regular season home games. Broadcast revenue increased due to contractual rate increases. Mixed-use development revenue was $67.3 million in 2024, up from $59 million in 2023, and was primarily driven by increases in rental income and parking revenue. Our full year Adjusted OIBDA increased to $39.7 million in 2024, an increase of $1.9 million as the increased revenue from our various operations were somewhat offset by an increase in baseball operating costs, including increased player salaries and a larger revenue share expense.
Jill: For baseball revenue was $595 4 million in 2024.
Jill: From 581 7 million in 2023.
Jill: This revenue increase was driven by a combination of baseball event revenue and broadcasting revenue.
Baseball revenue increase due to new sponsorship agreements and contractual rate increases on season tickets, partially offset by reduced attendance at regular season home games.
Jill: Broadcast revenue increase due to contractual rate increases.
Jill: Mixed use development revenue was $67 3 million in 2024 up from 59 million in 2023 and was primarily driven by increases in rental income and parking revenue.
Jill: Our full year adjusted OIBDA increased to $39 7 million in 2024, an increase of $1 9 million as the increased revenue from our various operations or somewhat offset by an increase in baseball operating cost.
Jill: Including increased player salaries, and a larger revenue share expense.
Jill Robinson: In Q4, Adjusted OIBDA improved to -$3.8 million, up from -$13 million in Q4 2023. This improvement was due to a reduction in baseball operating expenses, including player salaries and off-season trade activity. Our operating loss improved to $18.6 million in Q4 2024 as compared to an operating loss of $32.4 million in Q4 2023. For the full year 2024, our operating loss improved to $39.8 million as compared to an operating loss of $46.4 million in 2023, primarily due to an increase in revenue. As of 31 December 2024, the company had $110.1 million of cash and cash equivalents. Nearly all of our cash and cash equivalents are invested in US Treasury securities, other government securities or government-guaranteed funds, AAA-rated money market funds, and other highly rated financial and corporate debt instruments.
Jill: In the fourth quarter, adjusted OIBDA improved to negative $3 8 million.
Jill: From negative $13 million in the fourth quarter of 2023.
Jill: This improvement was due to a reduction in baseball operating expenses, including player salaries and off season trade activity.
Jill: Our operating loss improved to $18 6 million in the fourth quarter of 2024 as compared to an operating loss of $32 4 million in the fourth quarter of 2023.
For the full year 2024, our operating loss improved to $39 8 million as compared to an operating loss of $46 4 million in 2023, primarily due to an increase in revenue.
Jill: As of December 31, 2024, the company had $110 1 million of cash and cash equivalents nearly all of our cash and cash equivalents are invested in U S. Treasury Securities other government securities or government guaranteed funds AAA rated money market funds and other highly.
Jill: Rated financial and corporate debt instruments.
Jill Robinson: With that operator, let's open the line for questions.
Speaker Change: And with that operator, let's open the line for questions.
Operator: Certainly. We'll now be conducting a question and answer session. If you'd like to be placed into question queue, please press star one on your telephone keypad. As a reminder, we ask you please ask one question and one follow-up, then return to the queue. You may press star two if you'd like to remove your question from the queue. Once again, that's star one to be placed into question queue. One moment please, while we poll for questions. Our first question today is coming from Benjamin Swinburne from Morgan Stanley. Your line is now live.
Speaker Change: Certainly, we'll now be conducting a question and answer session if you'd like to be placed in the question queue. Please press star one on your telephone keypad.
Speaker Change: As a reminder, we ask you. Please ask one question and one follow up then return to the queue. You May press star two if you'd like to remove your question from the queue. Once again Thats star one to be placed in the question Q.
Speaker Change: One moment, please while we poll for questions.
Speaker Change: First question today is coming from Ben Swinburne from Morgan Stanley. Your line is now live.
Benjamin Swinburne: Thanks. Good morning, everybody. Maybe I wanted to touch on two topics. One is on your local media rights and that business in 2025, and the other sort of on maybe capital structure and kind of the balance sheet. Going into 2025, you've got an agreement with FanDuel TV. You talked about the streaming rights for the first time being made available. You have your deal with Gray. Can you kind of put all that together? Maybe strategically, what does that mean for the business? Financially, is this a new structure that should impact broadcasting revenue growth one way or the other in 2025 versus the trend lines we've been seeing? I just wanted to confirm that this FanDuel agreement continues to run through 2027. I don't know if that changed as part of the restructuring activity last year.
Ben Swinburne: Thanks, Good morning, everybody.
Ben Swinburne: Maybe I wanted to touch on two topics. One is on your local media rights and that business and twenty-five and the other sort of on maybe capital structure and kind of the balance sheet.
Ben Swinburne: No.
Ben Swinburne: Going into 25, you've got a an agreement with Standalone T V. You talked about the streaming rights for the first time being made available you have your deal with gray.
Speaker Change: Can you kind of put all that together, maybe strategically what does that mean for the business and then financially does that is this a new structure that should impact <unk>.
Speaker Change: Broadcasting revenue growth, one way or the other in twenty-five versus the trend lines, we've been seeing and I just wanted to confirm that that the Standalone agreement continues to run through 'twenty seven I didn't know if that changed as part of the the restructuring activity last year and then I'll just throw out my my balance sheet question, maybe probably for Derrick.
Benjamin Swinburne: I'll just throw out my balance sheet question, maybe probably for Derek Schiller. How do you guys think about capital structure and leverage? Is this sort of the right level of debt for the business? Are you looking to try to delever over time? Are you trying to get to free cash flow positive? Any thoughts there would be helpful. Thanks so much.
Speaker Change: Is this the right like how you guys think about capital structure and leverage does this sort of the right level of debt for the business are you looking at trying to delever over time, you're trying to get to free cash flow positive any any thoughts there would be helpful. Thanks, so much.
Derek Schiller: Hey, Ben. Derek. Thank you very much for the question. Yeah. On the topic of media and local media specifically, I would say we feel like we remain in a very strong position. Obviously, the reemergence of Main Street Sports from bankruptcy we see as a net positive. It also gave us the opportunity to re-engineer that deal slightly. The re-engineering of that deal really relates to creating more accessibility of our games for our fans. That's done in 2 different ways, the first and foremost of which is by adding streaming opportunities into that deal. That wasn't previously in that deal. Now we have streaming coupled with the traditional linear distribution of those rights. Those things coupled together means that theoretically everybody inside of Braves country has the accessibility to see our games.
Ben Derrick: Hey, Ben Derrick. Thank you very much for the question yeah. So on the on the topic of media and local media specifically.
Ben Derrick: I would say we feel like we're we remain in a very strong position obviously, the reemergence of main street's sportswear and bankruptcy, we see as a net positive. It also gave us the opportunity.
Ben Derrick: To reengineer that deal slightly and the reengineering of that deal really relates to creating more accessibility of our games for our fans. So that's done in a couple of different ways, but first and foremost of which is.
Ben Derrick: By adding streaming opportunities into that deal.
Ben Derrick: So that wasn't previously in that deal. So now we have streaming coupled with the.
Ben Derrick: The traditional linear distribution of of <unk>.
Ben Derrick: Those rights so those things coupled together means that theoretically everybody inside of raves country has the accessibility to see our games and this is a good reminder, and good time to remind you that that we have one of the strongest if not the strongest.
Derek Schiller: This is a good reminder and a good time to remind you that we have one of the strongest, if not the strongest, home television territories in all of Major League Baseball. We're now able to penetrate effectively that entire marketplace. The other re-engineering gave us the ability to go to an over-the-air partner, which is what we talked about with the Gray Media deal. That deal is important because it also gives us further accessibility of those games to more people. That's done in a couple of different ways. We actually have our first spring training broadcast with Gray tomorrow, and we'll have 10 total spring training games. You have a lot more spring training games available to our fans. Going into the regular season, we have 15 games that we will be doing as simulcasts.
Ben Derrick: Hum TV territories, and all of major League baseball.
Ben Derrick: So we're now we're now able to penetrate effectively that entire marketplace. The other reengineering gave us the ability to go to.
Ben Derrick: Over the air partner, which is what we talked about with the great media deal. So that that deal is is important because it also gives us further accessibility of those games to more people. So that's done in a couple of different ways. We actually have our first spring training broadcast.
Ben Derrick: With great Tomorrow.
Ben Derrick: We will have 10 total spring training game. So you have a lot more spring training games available through our fans and then going into the regular season, we have 15.
Ben Derrick: James that we will be doing a simulcast so all of that together means there's more ways for our fans to view our games follow our content and ultimately.
Derek Schiller: All of that together means there's more ways for our fans to view our games, follow our content, and ultimately, that's of benefit to our fans and to the business. As far as capital structure, I'll turn to Jill, who can probably give you a little bit of highlight on that one.
Ben Derrick: That's a benefit to our fans and to the business as far as capital structure I'll turn to Jill who can probably give you a little bit of highlight on that one.
Jill Robinson: Ben, would you mind repeating your question about capital structure?
Ben Derrick: Then would you mind repeating your question about capital structure.
Benjamin Swinburne: Yeah. Your company is a unique public company as a professional sport team with real estate assets. We don't have a lot of comparables to think about kind of the right level of debt and whether kind of generating positive free cash flow as we think about cash from operations less CapEx is an important priority for the company. Just trying to get a sense for if you guys are comfortable with the structure you have today and the financial profile, if you'd like to see less debt over time or anything you could share would be helpful.
Speaker Change: Yeah, you know it you're companies is it a unique public company as a professional sports team with real estate assets and so we don't have a lot of comparables to think about kind of the right level of debt and whether kind of generating positive free cash flow as we think about cash from operations less capex is an important priority for the company. So I'm just trying to get a <unk>.
Speaker Change: Or if you guys are comfortable with with the structure you have today and the financial profile, if you'd like to see less debt over time or anything you could share would be helpful.
Jill Robinson: Yeah. I would break our debt into two categories. The debt that's associated with the real estate assets, which is all tied to construction on the assets and The Battery. Obviously, that is all secured debt, and we are comfortable with where we are there. Then on the baseball side, our goal is slightly different, and our goal on the baseball side is really to maintain as much liquidity as possible. We feel like having borrowing capacity available to us allows us flexibility to invest in the team, invest in the stadium in an opportunistic manner as we move forward. To answer your question, yes, we are comfortable with where we are.
Speaker Change: Yeah, So I would I would break our debt into two categories. The debt that's associated with the real estate asset, which is all tied to a construction on the on the assets and the battery.
Speaker Change: Obviously that is all secured debt and we're comfortable with where we are there and then on the baseball side. Our goal is slightly different and our goal on the Batesville side is really to maintain as much liquidity as possible, we feel like having borrowing capacity.
Speaker Change: Available to us allows us flexibility to invest in the team invest in the stadium in an opportunistic manner as.
Speaker Change: As we move forward so.
Speaker Change: To answer your question, Yes, we're comfortable with where we are gotcha. Thank you Jill.
Benjamin Swinburne: Got you. Thank you, Jill.
Speaker Change: Yeah.
Operator: Thank you. Next question is coming from David Joyce from Seaport Research Partners. Your line is now live.
Speaker Change: Thank you next question is coming from David Joyce from Seaport Research Partners. Your line is now live.
David Joyce: Thank you. I was wondering what else you can do on the development front within the footprint of what you have there surrounding the park. What can you do on concert venues? I guess it would be mostly in the park, either in season or outside the season. Since you did call out that you didn't have any in Q4. Just wondering what's the opportunity set there? Thanks.
David Joyce: Thank you I was wondering what else you can do on the development front within your footprint.
David Joyce: Footprint of what you have there surrounding the you know the park and what can you do on concert venues.
David Joyce: Yeah.
David Joyce: Yes, it would be mostly in the park either in season or outside the season. Since you did call out that you didn't have any in the fourth quarter was just wondering.
David Joyce: So what's the opportunity set there thanks.
Mike Plant: Hey, David, this is Mike Plant. Thanks for your question. Look, we've said this in many years in the past here, that we have some undeveloped land that is still available, and we remain opportunistic about opportunities that come to us. Truist Securities, the headquarters, is a great example of that. That brings, as I said earlier, up to 1,000 new employees to this campus. Through our efforts, we continue to see new opportunities. Shake Shack is a great example of that, bringing an incredible brand to our campus and The Battery. Look, I think we've demonstrated over the last 8 years that we are very attractive because of the year-round use, the year-round impact that we create, and we'll continue to look at opportunities as they come our way.
Mike Plant: Hey, David This is Mike plant. Thanks for your question.
Speaker Change: Look we've said this in many years in the past year that we have some undeveloped land that is still available and we will.
Speaker Change: We remain opportunistic about opportunities that come to us true of securities. The headquarters is a great example of that that brings as I said earlier up to a 1000 new employees to this campus.
Speaker Change: Through our efforts, we continue to see new opportunities Shake Shack is a great example of that bringing incredible brand two to our campus and the battery. So look we've I think we've demonstrated over the last eight years that we.
Speaker Change: Our very attractive because of the the year round used year round impact that we create and we will continue to look at opportunities as they come our way.
Derek Schiller: It's Derek. I'll touch on the concerts, and I'll frame this more in non-game day events. We're going to be very aggressive in trying to get as many non-game day events in our ballpark, and in fact, in and throughout the Battery as possible. Some of that's just timing with concerts, for example. It has everything to do with tour routing and schedules and what concerts are out on tour on that particular year or that particular month. It's going to be a little bit randomized from year to year. Overall, our non-game day event business is extremely strong. In fact, some of the master plan projects that we've talked about and touched on, in addition to helping with the business of the baseball team and the Braves for baseball game purposes, they also are important for non-game day use.
Derek Schiller: And it's Derik I'll touch on the concerts and frame this more in non game day events.
Speaker Change: We're going to be.
Speaker Change: Very aggressive in trying to get as many non game day events in our ballpark in attracting and in throughout the battery as possible.
Some of Thats, just timing with with concerts for example, it has everything to do with tour routing and schedules and you know what concerts or out on tour in that particular year that particular month, so it's going to be a little bit randomized from year to year, but overall, our non game day event business.
Speaker Change: Extremely strong and in fact, some of the master planned projects that we've talked about and touched on.
Speaker Change: In addition to helping with the business of the baseball team and the brace for baseball game purposes. They also are important for non game day use. So we're looking at the return on investment with both of those things and feel very strongly about the outlook for non game day events.
Derek Schiller: We're looking at the return on investment with both of those things and feel very strongly about the outlook for non-game day events.
David Joyce: Great. Thank you.
Speaker Change: Great. Thank you.
Operator: Thank you. Next question is coming from Barton Crockett from Rosenblatt Securities. Your line is now live.
Speaker Change: Thank you next question is coming from Barton Crockett from Rosenblatt Securities. Your line is now live.
Barton Crockett: Okay, great. Thanks for taking the questions. Yeah, I was curious about some thoughts on the broadcasting rights environment. I know you addressed kind of the local, but I'm interested in the national, which I guess is still kind of in process. Obviously, there's been some press reports that ESPN may be walking from its deal, and there's some thought that maybe the national rights for MLB are overpriced and will have a downward trajectory. I was just wondering if you could address your thoughts on that. Do you think of that as a possibility, something you need to prepare for? Just some sense of the exposure of you guys to those national TV contracts and how you think about it would be interesting. That's one question.
Barton Crockett: Okay, great. Thanks for taking the questions and.
Barton Crockett: I was curious about some thoughts on.
Barton Crockett: The broadcasting rights environment.
Barton Crockett: Can you address kind of the local but I'm interested in the national which I guess is still kind of in process, but obviously theres been some press supports that.
Barton Crockett: ESPN may be walking from its deal and there is some thought that you know maybe the national rights for MLB are overpriced, and we will have a downward trajectory and I was just wondering if you could address your thoughts on that do you think of that as a possibility something you need to prepare for and just some sense of.
Speaker Change: The exposure of you guys to those national TV contracts and how you're thinking about it would be interesting.
Speaker Change: So that's one question and then on a completely different subject I was just wondering there's been a lot of kind of talk about the off season trade moves you guys have been quiet some of your competitors have been very active.
Barton Crockett: On a completely different subject, I was just wondering, there's been a lot of kind of talk about the off-season trade moves. You guys have been quiet. Some of your competitors have been very active. If you could address some of the, I guess, worries that maybe your off-season's been too quiet. Also in terms of the P&L, what we should think about in terms of player salaries for the year.
Speaker Change: If you could address some of the you know I guess worries that you know maybe your off season have been too quiet.
Speaker Change: But also in terms of the P&L you know what we should think about in terms of player salaries for the year.
Terence McGuirk: Okay, this is Terry responding. The ESPN MLB breakup is getting really outsized public scrutiny. I really think that from the Atlanta Braves standpoint, this is a non-event. It will have no effect whatsoever on our economics. Obviously, MLB has had its own comments on this, but I would just make the observation that I think the market is going to be surprised at the enthusiasm and uptake on the interest in these sets of rights that are coming available for next year. I know that the interest is very strong, and I'm sure you'll hear more from Rob Manfred on this in the coming weeks. Second question, if I remember it correctly, was where are we on salaries?
Terry: Okay. This is Terry responding.
Speaker Change: So the.
The ESPN MLB breakup is getting really outsized.
Speaker Change: Public.
Speaker Change: Scrutiny I really think that.
Speaker Change: From the Atlanta Braves standpoint, this is as a non event it will have no effect whatsoever on our.
Speaker Change: Economics.
Speaker Change: The obviously MLP has has had its own comments on this but I would just make the observation that I think the market is going to be surprised at the enthusiasm and uptake on the.
Speaker Change: Interest in these sets of Reits that are coming available for next year.
Speaker Change: And.
Speaker Change: I know that the.
Speaker Change: The interest is very strong and I'm sure you'll hear more from.
Speaker Change: Rob Manford on this in the coming weeks.
Speaker Change: Second question.
Speaker Change: The.
Speaker Change: If I remember it correctly was the.
Speaker Change: Where are we on salaries.
Terence McGuirk: We have always been, over the last 3 or 4 years, been a top 10 salary organization in how we deploy that in baseball, and we expect that to be the same again this year. We have crossed the Competitive Balance Tax each of the last 2 years. It's possible we could do it again this year. That as a consideration, as a strategic element, isn't in our top 2 or 3 issues when we come to that, how we spend our salary levels. Alex Anthopoulos has always had the resources to do what he needs to do to put a championship group on the field. I see no different situation this year. We have some dry powder. We monitor the available talent field every day, 24/7, 365. This year, there are a tremendous number of free agents that still are out there in the marketplace.
Speaker Change: And the.
Speaker Change: We we have always been over the last three or four years been a top 10 salary organization.
Speaker Change: And how we deploy.
Speaker Change: In baseball and we.
Speaker Change: We expect that to be the same again this year.
Speaker Change: Our.
Speaker Change: Sure.
Speaker Change: We have we have crossed the competitive balance tax each of the last two years.
Speaker Change: It's possible we could do it again this year.
Speaker Change: That is a consideration as a strategic element isn't in our top two or three issues when we come to that how we how we spend our <unk>.
Speaker Change: Allergy levels.
Speaker Change: Alex has always had Alexander <unk> has always had the resources to.
Speaker Change: To do what he needs to do to put a championship group on the field I see no different situations this year.
Speaker Change: <unk>.
We have some dry powder.
Speaker Change: Sure.
Speaker Change: We monitor the available talent.
Speaker Change: Field everyday $24 $703 65.
Speaker Change: This year there are a tremendous number of free agents that still are out there in the marketplace.
Terence McGuirk: Just as an example, last year, we signed Adam Duvall on 17 March. Who knows exactly how this spring training shakes out from a salary standpoint. I think from the generalizations I gave you of being a top 10 salary organization going forward is exactly where we will be.
Speaker Change: Just as an example last year, we signed Adam do ball on March 17th.
Speaker Change: So.
Speaker Change: Who knows exactly how this spring training shakes out from a.
Speaker Change: Our salary standpoint.
Speaker Change: <unk>.
Speaker Change: I think from the generalizations I gave you of being a top 10 salary organization going forward is exactly where we will be.
Barton Crockett: Okay. Thank you.
Speaker Change: Okay. Thank you.
Operator: Thank you. Next question is coming from Matthew Harrigan from The Benchmark Company. Your line is now live.
Speaker Change: Thank you next question is coming from Matthew Harrigan from the Benchmark Company. Your line is now live.
Matthew Harrigan: Thank you. We've seen some remarkable spikes in social media engagement for sports as disparate as NBA and Formula 1, it hasn't necessarily equated to higher linear viewing and maybe younger demographics in particular have the attention span of a goldfish, although that may be insulting to goldfish. Certainly, you've got people who are literally monitoring games on betting apps if they're prop bets or just to bet on the game. It conveys a lot of interest in the NBA, MLB, or whatever, but it isn't necessarily monetizable in an old school model. How do you go about addressing that? That's just kind of a behavioral change on the part of fans. Secondly, I asked you last time on the call about what you're doing on the international side to contribute to the popularity of the sport there.
Matthew Harrigan: Thank you where since the remarkable spikes in social media engagement for sports as disparate as MBA.
Matthew Harrigan: And formula one and it hasnt necessarily equate to the higher linear viewing and maybe younger demographics in particular have the attention span of a goldfish maybe insulting to.
Matthew Harrigan: Goldfish.
Matthew Harrigan: Then certainly you've got people who are literally.
Matthew Harrigan: Moderate games on betting apps if there.
Matthew Harrigan: So just just to bet on the dam so it is.
Matthew Harrigan: Conveys a lot of interest in the NBA or the MLP or whatever but it does it doesn't.
Matthew Harrigan: So certainly monitor sizeable and an old school model, how do you go about addressing that that's just kind of a behavioral change on the part of fans and then secondly, I asked you last night I want to call about whats Youre doing the international side to contribute to the popularity of the sport there I know the Braves clearly have a big enough.
Matthew Harrigan: I know the Braves clearly have a big international following, but any thoughts on that as well would be welcome. Thank you for taking my questions.
Matthew Harrigan: National falling, but any any thoughts on that as well it would be welcome.
Matthew Harrigan: Thank you for taking my questions.
Derek Schiller: Thanks, Matthew. It's Derek. I'll be happy to answer those. On the social media front and really media consumption as a whole, I'll sort of reiterate a little bit of what I said before relative to our local rights approach, which is, to the extent possible, we want to try to create the maximum accessibility of our content throughout our available territory. Again, we have one of the largest territories in all of pro sports, so our opportunity is quite large. I think part of what you're seeing in our approach to the local media is really a relationship to exactly what you're alluding to. It's trying to find the fans wherever they are and give them the maximum accessibility to our games. Specific to social media, I would say our approach is rather robust.
Thanks, Matthew it's Derik I'll be happy to answer those so on the social media front and really media consumption as a whole.
Derek Schiller: I'll sort of reiterate a little bit of what I said before relative to our local rights approach, which is to the extent possible. We want to try to create the maximum accessibility of our content throughout our available territory and again, we have one of the largest territories and all of pro sports. So our opportunity is quite large.
Derek Schiller: So I think part of what Youre seeing in our approach to the local media is really a relationship to exactly what youre alluding to it's trying to find the fans wherever they are and give them the maximum accessibility to our games.
Derek Schiller: Specific to social media I would say our approach is rather robust.
Derek Schiller: Like a lot of professional sports teams, we meet our fans where they are, whether that's an Instagram or a Facebook or whatever our fans are, that's what we're generating content towards. We have, in fact, some content that's launching on YouTube, have used YouTube as examples for that. There's going to be a lot of ways that we reach out to fans across a wide spectrum of the media landscape, there's a lot of disruption and things that are occurring on that. As it relates to international development, actually, somewhat relates to this particular topic, to the extent possible, we try to get to our fans, again, wherever they are. In the case of social media, they're coming from all across the United States, the world.
Derek Schiller: Like a lot of professional sports teams.
Derek Schiller: We meet our fans, where they are and so whether thats.
Derek Schiller: And Instagram or Facebook or whatever our fans are that's what we're generating content towards.
Derek Schiller: In fact.
Derek Schiller: Some content that's launching on Youtube.
Derek Schiller: Have used Youtube as examples for that so there's going to be a lot of ways that we reach out to fans across a wide spectrum of the media landscape and Theres a lot of disruption and things that are occurring on that.
Derek Schiller: As it relates to international development actually.
Derek Schiller: Somewhat relates to this this particular topic and that is to the extent possible, we try to get to our fans again wherever they are and in the case of social media. They are coming from all across the United States The world.
Derek Schiller: We have extremely large followings that are coming to us from all those different international places. I think this is a little bit of a continuation of, quite frankly, how the fan base has emerged way back when we were on TBS as a superstation. We enjoy the benefits of the early on years where you could find us all across the country and the globe as a result of that. As far as baseball goes, there's a significant international development approach with baseball. The World Baseball Classic is just one example, but there's a lot of things that are going on, and this is probably a good time to remind everybody on the call, we're hosting the All-Star Game this year.
Derek Schiller: We have extremely large followings that are coming to us from all of those different international places.
Derek Schiller: I think this is a little bit of a continuation of quite frankly, how the fan base has emerged way back when when we were on.
Speaker Change: GBS is a superstation so thats.
We enjoy the benefits of the early on years, where you can find us all across the country and the globe as a result of that and then as far as baseball goes there is a significant international development approach.
Speaker Change: With baseball.
Speaker Change: The World Baseball Classic is just one example, but there's a lot of things that are going on.
Speaker Change: This is probably a good time to remind everybody on the call. We're hosting the all star game. This year and so this is all eyes of the baseball World. The sports World will be descending upon Atlanta interest Park come July 15th. So this is a perfect opportunity to showcase all of what we do and how we do it and hopefully garner more fans as a result.
Derek Schiller: This is all eyes of the baseball world, the sports world will be descending upon Atlanta and Truist Park come July 15th. This is a perfect opportunity to showcase all of what we do and how we do it, and hopefully garner more fans as a result.
Matthew Harrigan: If someone's following the particular players or just betting on games, is there a lag in monetizing that direct consumer engagement? Can you get more advertising on that over a period of time? It feels like there's a free rider effect for some people who aren't watching the TV broadcasts just to be persistent.
Speaker Change: But if someone fall on the particular players are just betting on gloves is there a lag in.
Speaker Change: Monetizing that direct consumer engagement can you get more advertising on that <unk>.
Speaker Change: Period of time, because it is.
Speaker Change: It feels like there's a free ride or effect for some for some people who aren't watching the television broadcast.
Speaker Change: To be consistent.
Derek Schiller: Yeah. I mean, look, not everybody's going to sit down and watch a two and a half hour or three hour game. To the extent possible, developing content that's short form in nature is something that we need to do, we've been doing. Baseball's done a really good job of giving our players tools directly that help them shape social media opportunities in addition to what we do at the team level. I think those things will continue to emerge and develop and hopefully when somebody's following us in a social media setting that might be short form, they become a bigger fan of the team and ultimately will follow our content to the extent possible on a long-form basis.
Speaker Change: Yes, I mean look theres not everybody is going to sit down and watch it two and a half hour or three hour game. So to the extent possible developing content that short form in nature is something that we need to do we've been doing.
Speaker Change: Baseball has done a really good job of giving our players tools directly that help them shape social media opportunities. In addition to what we do at the team level. So I think those things will continue to.
Speaker Change: Emerge and develop and hopefully when somebody is following us and a social media setting that might be short form they become a bigger fan of the team and ultimately will.
Speaker Change: Follow our content to the extent possible on a long term basis.
Matthew Harrigan: Thanks, Derek. I hope you have a great season.
Speaker Change: Thanks, Eric I Hope you have a great season.
Derek Schiller: Thank you.
Operator: Thank you. We've reached the end of our question and answer session. I'd like to turn the floor back over to Derek for any further closing comments.
Speaker Change: Thank you we've reached end of our question and answer session I'd like to turn the floor back over to Derek for any further closing comments.
Derek Schiller: I just want to thank everybody for joining us today. As a reminder that we have a lot ahead of us. I think we're 29 days to 27 March, the opening of our season, 37 days to 4 April when we have our first home opener for the season. Of course, as I mentioned, 15 July, the All-Star Game comes to Atlanta. Thank you everybody for joining the call. We'll look forward to hearing from you and seeing you next time.
Speaker Change: They just want to thank everybody for joining us today.
Speaker Change: As a reminder, that we have a lot ahead of US I think we are.
29 days to March 27 for opening of our season 37 days through April 4th when we have our first home opener.
Speaker Change: For the season and of course as I mentioned July 15th the all Star game comes to Atlanta. Thank you everybody for joining the call. We look forward to hearing from you and see you next time.
Operator: Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.
Speaker Change: Thank you that does conclude today's teleconference and webcast you may disconnect. Your lines at this time and have a wonderful day.
Speaker Change: You for your participation today.
Speaker Change: Yeah.