Liberty Braves Group - DENALI INVESTORS, LLC June 2016 - cloudfront.net
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Liberty Braves Group
BATRA / B / K
June 2016
DENALI INVESTORS, LLC
LMCA+LSXMA+BATRA 2016.04.15
LMCA spinoffs of LSXMA and BATRA
▪ New LMCA (Liberty Media) holds LYV stake, other assets and liabilities
▪ LSXMA (Liberty Sirius) holds Sirius stake, other assets and liabilities
▪ BATRA (Liberty Braves) holds Atlanta Braves, real estate, other assets
and liabilities
▪ Separation to create pure play Sirius and Braves equities
▪ Separation to highlight value of LSXMA and BATRA assets within LMCA
▪ New LMCA, LSXMA, and BATRA will be structured as tracking stocks
▪ Allow each entity to pursue appropriate value creation path
DENALI INVESTORS, LLC
Liberty Media Pro Forma Structure
2015.11 Liberty Presentation
DENALI INVESTORS, LLC
Tracking Stocks 101
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 Media Corporation stock traded prior to creation of
the tracking stocks
▪ Provide greater investor choice
▪ Create specific transaction/compensation currencies for each tracker
▪ Allows separate capitalization and fundraising in a more targeted way
▪ Continue to provide advantages of doing business under common ownership
▪ Provide greater ability to tailor management and employee incentives
Nothing has changed about the legal ownership or control of the Braves – Liberty Media Corporation remains the
legal owner. Liberty Media has not spun-off, sold or otherwise monetized the Atlanta Braves
2016.04 Liberty Presentation
DENALI INVESTORS, LLC
BATRA / B / K
DENALI INVESTORS, LLC
BATRA Summary
Liberty Braves Group
▪ BATRA will hold the Atlanta Braves Team, minor league teams, and
other assets
▪ SunTrust Park Stadium
▪ Mixed-use associated real estate development projects
▪ $200m rights offering (similar to that of LBRDA’s)
▪ Net Cash of $96m
▪ Debt (ex Mixed-use) of $347m
▪ BATRA will be structured as a tracking stock
DENALI INVESTORS, LLC
Indicative NAV for Liberty Braves Group
2015.11 Liberty Presentation
DENALI INVESTORS, LLC
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 Warner Inc.
SunTrust Park
▪ $672m ballpark to be built in Cobb County, GA
The Battery Atlanta
▪ Mixed-Used Development Project to drive incremental traffic
▪ $558m mixed-use complex featuring:
▪ Up to 400,000 square feet of restaurant and retail space
▪ 600 upscale residences
▪ 265-room Omni hotel
▪ Nine-story regional headquarters for Comcast that will employ more
than 1,000 people
Tracking stocks distributed April 15th
▪ Trading under ticker symbols BATRA/B/K
▪ Each holder of Liberty Media Corporation common stock received 0.1 of a share
of corresponding series of Liberty Braves Group
Planned $200m rights offering for BATRK common stock
(1) For illustrative purposes, Forbes enterprise valuation as of March 2016 . Includes value of new ballpark, but excludes equity in non-baseball assets (i.e. Mixed-Use development).
(2) Pro-forma for proposed $200m Rights Offering.
(3) Includes $61m in attributed cash per Liberty Media Corporation’s proxy materials filed 2/18/16; adjusted for $200m in proceeds from Rights Offering less repayment of $165m Inter-Group Note.
(4) 12/31/15 debt balance excluding ballpark/mixed-use of $17m (see slide 15 for more detail) plus ballpark debt at completion.
(5) Inter-Group Interest not reflected in outstanding share count of Liberty Braves Group.
2016.04 Liberty Presentation
DENALI INVESTORS, LLC
Liberty Braves Group Summary Organizational Structure
2016.04 Liberty Presentation
DENALI INVESTORS, LLC
Liberty Braves Group Financial Summary
2016.04 Liberty Presentation
DENALI INVESTORS, LLCRevenue Streams
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 of 2017 full-season ticket estimated to be $6-$93⁽¹⁾
2) Local broadcast rights
▪ Television: Local rights secured through 2027 with Fox SportSouth
▪ Renegotiated after 2012 season and Braves now in upper half of local sports rights deals
▪ Radio: 147 local radio station affiliates across Southeast
3) National Revenues
▪ National network broadcast rights secured through 2021
▪ Licensing and other shared MLB revenue streams
Adjacent mixed-use development will be a sought-after destination and adds a significant
real estate component to the Braves business
(1) Non premium seating
2016.04 Liberty Presentation
DENALI INVESTORS, LLCSummary of Revenue Streams
2016.04 Liberty Presentation
DENALI INVESTORS, LLCThe New Atlanta Braves Ballpark & 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 Authority
2016.04 Liberty Presentation
DENALI INVESTORS, LLCBallpark Project to Enhance Brave’s 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
▪ Various other multi-year sponsorship agreements secured (including Delta Sky 360 Club and Coors Chop House)
2) Increased premium seating with multiple classes provides stronger value proposition to ticketholders
▪ Additional amenities driving increased ticket sales
▪ Premium conversion from existing season ticketholders has been very positive
3) Mixed-use creates substantial revenue opportunities to increase value, creating fan destination and not
just a ballpark
2016.04 Liberty Presentation
DENALI INVESTORS, LLCBallpark and Mixed-Use Facility Financing
Funding for Braves development
▪ SunTrust Park
▪ $392m in funding from Cobb County and various
other local entities
▪ $368m through municipal bond issuance
▪ Braves to fund remaining $280m, plus $50m of
ballpark related equipment and any cost over-runs
▪ Closed ballpark construction loan in September to
fund remaining portion of ballpark, parking and plaza
▪ $345m, 5-year bank term loan, L+150-175bps
▪ Mixed-Use Development
▪ Estimated $558m mixed-use complex
▪ Braves to fund $490m through debt and equity
2016.04 Liberty Presentation
DENALI INVESTORS, LLCSummary of Existing and Incremental Ballpark Financing
2016.04 Liberty Presentation
DENALI INVESTORS, LLCSummary of Existing and Incremental Mixed-Use Financing
2016.04 Liberty Presentation
DENALI INVESTORS, LLCLiberty Braves Group Total Debt
2016.04 Liberty Presentation
DENALI INVESTORS, LLCProposed 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 price equal to 20% discount to volume weighted average trading price of
Series C common stock over a specified measurement period
▪ Distribution ratio, record date, ex-dividend date and measurement period to be
announced at a later date
Proceeds will primarily repay Inter-Group Note from Liberty Media Group and fund
development
▪ Inter-Group Note used to fund equity contribution on Mixed-Use development
Liberty Media Group, which retained a 20% interest in the Liberty Braves group, will
not receive exercisable rights in the proposed rights offering
2016.04 Liberty Presentation
DENALI INVESTORS, LLCBATRR Series C Rights Offering
Terms
▪ 2016.05.16 Announces Terms (WI BATRV)
▪ 2016.05.18 Distribution Date
▪ 2016.05.19 Rights Offering will commence and remain open for 20
trading days (BATRR)
▪ Distribute 0.47 of a Series C Liberty Braves Right for each share of Series
A, Series B or Series C Liberty Braves common stock held
▪ Subscription price of $12.80, which is equal to an approximate 20%
discount
▪ Tradeable
▪ Oversubscription privilege
DENALI INVESTORS, LLCBATRR Rights Performance
DENALI INVESTORS, LLCMalone Exercising Rights
Form 4 (2016.06.08)
▪ Rights participation (73%)
greater than pro rata
issuance (47%)
DENALI INVESTORS, LLC20% IGI Adjustment
20% Inter-Group Interest
▪ The equity percentage represented by the IGI will decrease as and when
Rights are exercised in connection with the Rights Offering
▪ The number of notional Liberty Braves common stock shares
representing the IGI will increase, with the result that the intrinsic value
of the current IGI will remain the same as prior to the Rights Offering,
assuming full exercise of the Rights
DENALI INVESTORS, LLC20% IGI Adjustment
Adjustment Table
2016.05.18 Liberty Press Release
DENALI INVESTORS, LLCDeep 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 System, Inc., and also
served as Vice Chairman and Director of Turner Broadcasting from 2001 to 2007.
John Schuerholz, Vice Chairman
John Schuerholz was named Vice Chairman of the Atlanta Braves in March 2016. Mr. Schuerholzhad been the President of the Braves
since 2007, before which he served for 17 years as the club's Executive Vice President and General Manager. Mr. Schuerholz began his
career with the Baltimore Orioles in 1966, and came to Atlanta after 22 years with the Kansas City Royals
Derek Schiller, President, Business
Derek Schiller was named President of Business of the Atlanta Braves in March 2016. Previously, Mr. Schiller was Executive Vice
President of Sales and Marketing for the Braves since 2003. Mr. Schiller manages sales, broadcasting, licensing, community relations and
marketing strategy for the club. Prior to joining the Braves, Mr. Schiller served in marketing and development roles for the New York
Yankees and the Atlanta Thrashers hockey team.
Mike Plant, President, Development
Mike Plant has served as Executive Vice President of Business Operations for the Braves since 2003. Mr. Plant's responsibilities include
overseeing stadium operations, security, finance, personnel, special events and the operations of the Braves' minor league clubs. He is
currently serving as Project Leader for the club's new stadium development project.
Chip Moore, Chief Financial Officer
Chip Moore was promoted to the role of Chief Financial Officer in 2009 after serving at various levels in the Controller office for the
Braves, and spending a total of 31 seasons with the Braves organization. Mr. Moore oversees all accounting, treasury and finance
operations, including the Braves' minor league operations, risk management, tax related issues, payroll, procurement and company
reporting functions
2016.04 Liberty Presentation
DENALI INVESTORS, LLCDeep Bench of Management Talent (cont’d)
Greg Heller, Chief Legal Officer
Greg Heller has been legal counsel to the Braves for over 15 years. As SVP & Chief Legal Officer, Heller oversees all legal affairs for the
Braves and its minor league franchises. Mr. Heller also spent nearly 7 years in the legal department at Turner Broadcasting where he
was counsel to the Braves, Hawks, Thrashers, Philips Arena, TNT and TBS Sports and Turner Sports Interactive.
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 Orioles. Mr. Hart served as interim General Manager
for the Braves beginning on September 23, 2014 until Mr. Coppolella was promoted to the position earlier this year.
John Coppolella, General Manager
John Coppolella was promoted to General Manager of the Braves on October 1, 2015. Mr. Coppolella, who had been the Assistant
General Manager for the past three seasons, is under contract as General Manager through the 2019 season. Mr. Coppolella also
served as the Braves' Director of Pro-Scouting during the 2012 season, and as Director of Baseball Administration from 2007 to 2012.
Jeremy Strife, VP Braves Development and General Manager of The Battery Atlanta
Jeremy Strife was hired as VP of Braves Development and General Manager of The Battery Atlanta in November 2015. Strife has spent
the last eight years with Simon Property Group, Inc., most recently as the general manager of Newport Centre, Newport Crossing and
Newport Plaza in Jersey City, New Jersey. As general manager, Strife will lead the Development team, oversee operations, specialty
leasing, marketing, special events and all business functions of running The Battery Atlanta.
2016.04 Liberty Presentation
DENALI INVESTORS, LLCMLBAM
▪ Braves own 1/30th of MLBAM and BAM Tech
▪ The MLBAM has provided backend online service for organizations like
the NHL, ESPN, HBO, the WWE, March Madness and the PGA Tour (white
label Super Bowl streaming)
▪ 2015.08 MLBAM approved the creation of a new media company called
BAM Tech to take over all non-baseball related services
▪ BAM Tech - All 30 MLB owners will be the majority owners of, with the
NHL also holding a 7-10 percent minority ownership due to the recent
partnership
▪ Disney rumored to invest in BAM Tech
▪ MLBAM is valued at an estimated $5 to $10 billion
▪ BAM Tech is valued at an estimated $3 to $8 billion
▪ 2016 $1.3b revenue - 75% baseball, 25% other
▪ MLBAM CEO: Robert Bowman
DENALI INVESTORS, LLCValuation Summary
DENALI INVESTORS, LLCProject Details
DENALI INVESTORS, LLCIntroducing 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 enhance the fan experience
In November 2013, Braves announced agreement with Cobb County to construct a new facility, SunTrust Park,
and relocate to Cobb County effective for the 2017 baseball season
■ 30-year operating agreement / lease term with extension option
■ Control over all operating rights and right to retain all revenues from SunTrust Park
In conjunction with construction of SunTrust Park, a mixed use destination called The Battery Atlanta will be
developed in the surrounding area
■ Designed to greater enhance fan experience and consist of retail, restaurants, residential, hotel and office space
■ Braves partnering with developers to construct and finance the various components of The Battery Atlanta
2016.04 Liberty Presentation
DENALI INVESTORS, LLCConstruction Timeline
2016.04 Liberty Presentation
DENALI INVESTORS, LLCComprehensive 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
▪ Standard monthly construction monitoring and requisition processes
(1) Gross Maximum Price.
2016.04 Liberty Presentation
DENALI INVESTORS, LLCNorthwest Corridor Project
▪ The $834 million Northwest Corridor is a Public Private
Partnership (P3) between GDOT and Northwest Express
Roadbuilders (NWER), a joint venture of Archer Western
Contractors, LLC, of Atlanta, and Hubbard Construction
Company of Winter Park, FL
▪ The NWC will feature two new managed lanes along the
west side of I-75 between its interchanges with I-285
and I-575
▪ The lanes, scheduled to open in 2018, will be barrier
separated from the existing interstate and will be
reversible so that both will carry traffic southbound
during morning commute hours and northbound in the
evenings
▪ About the I-575 interchange, one new reversible lane
will be added in the I-75 center median to Hickory
Grove Road and a similar new I-575 lane will extend to
Sixes Road
▪ This project is being financed through a combination of
federal, state and private sector funds provided by
NWER
The ‘stem of the ‘Y’ is two lanes reversible and barrier separated,
and the branches up 575 and 75 after the split are single lane
2014.09 Governor Breaks Ground on Northwest Corridor Project reversible
2013.12 Georgia Tolls Move Forward with System Integrator for I-75
South and I-75 Northwest Corridor Toll Express Lanes in Atlanta Area
DENALI INVESTORS, LLCSite Visit
DENALI INVESTORS, LLCSite Visit
DENALI INVESTORS, LLCFavorable Market Demographics
2016.04 Liberty Presentation
DENALI INVESTORS, LLCBallpark Overview
DENALI INVESTORS, LLCSunTrust Park Features and Amenities
▪ 41,500 seats
▪ 90-foot roof
▪ Enhanced suites and premium seating
▪ SunTrust Club
▪ Delta Sky 360 Club
▪ Kids’ zone
▪ Coors Light Chop House
▪ Braves History
▪ Hi-speed Wi-Fi internet throughout park
▪ Expected open for 2017 baseball season
2016.04 Liberty Presentation
DENALI INVESTORS, LLCSunTrust Park Built with a Focus on Enhancing Fan Experience
▪ The location of SunTrust Park will be situated in the heart of
“Braves Country”, where the ticket-purchasing fan
concentration is the most dense
▪ SunTrust Park will be significantly smaller than Turner Field
with 41,500 total seats compared to over 50,000 at Turner,
but will possess more suites and unique seating facilities
▪ Numerous access points to SunTrust Park as well as major
highways will greatly reduce traffic issues currently
experienced by fans when traveling to and from Turner Field
2016.04 Liberty Presentation
DENALI INVESTORS, LLCNew Ballpark with Modern Amenities 2016.04 Liberty Presentation DENALI INVESTORS, LLC
Ballpark Analysis
▪ Removal of the majority of the upper level and associated lower value
tickets
▪ Lowers associated expenses, CapEx, and cleanup
▪ Lowers foot traffic and congestion
▪ “Premiumization”
*This does not adjust for JV partnerships
DENALI INVESTORS, LLCSTP Ticketing Strategy
▪ The Braves expect to sell about half the seats in SunTrust Park as season tickets
▪ A new phase of sales launched in early May, when the Braves began marketing 2017 season
tickets to the general public
▪ Sales efforts for the new Cobb County ballpark began last summer, but to this point have
focused on current season-ticket holders
▪ More than half of the 4,000 premium seats in SunTrust Park have been sold, including non-
premium seats, the team is on pace to have about 10,000 season tickets for 2017 sold by
May
▪ If achieved, 20,000 season tickets wouldn’t constitute a franchise record, the Braves sold
about 29,000 in Atlanta-Fulton County Stadium in 1993, but likely would double the current
season-ticket base. (The Braves don’t disclose that number, but it was believed to be in the
vicinity of 10,000 last year)
▪ A full seating chart with all prices will be released when the next phase of season-ticket sales
beings in May
2016.03 Braves’ Goal: Sell Half of SunTrust Park as Season Tickets
DENALI INVESTORS, LLCPremium Seat Analysis
PREMIUM SEAT PRICES AMENITIES PACKAGES
Prices for the approximately 4,000 premium seats in Among the amenities included in ticket prices of premium
SunTrust Park, defined as seats with access to club areas seats at SunTrust Park:
and other amenities:
▪ SunTrust Club seats: Access to SunTrust Club lounge,
▪ SunTrust Club seats (first rows between the with food, spirits, beer and wine included; in-seat food
dugouts): $475 per game ($39,425 per season), with and beverage service; valet parking; table on one side
commitments of seven, 10 or 15 years required. of each seat; access to Delta Sky360 Club lounge.
▪ Chairman seats (behind SunTrust Club): $215 per ▪ Chairman seats: Access to Delta Sky360 Club lounge
game ($17,845 per season), with commitments of five, with food, beer and wine included; in-seat food and
seven or 11 years required. beverage service; valet parking.
▪ Executive seats (behind chairman seats): $160 per ▪ Executive seats: Access to Delta Sky360 Club with
game ($13,280 per season), with commitments of food, beer and wine included; in-seat food and
four, six, or nine years required. beverage service; parking in “premium” lot.
▪ Terrace Club seats (in middle bowl): $85 per game ▪ Terrace Club seats: Access to Terrace Club lounge;
($7,055 per season), with commitments of three, five, $15 per game food and beverage credit per ticket.
or seven years required.
Notes: Season prices are based on 83 games, including
two exhibitions planned each season at SunTrust Park.
Seats are being sold only as full season tickets. Terms vary
2015.07 Prices triple for some prime seats in SunTrust Park
regarding price increases beyond 2017, depending on
contract length. Largest increase is three percent per year.
Some longer contracts call for prices to remain flat for a
number of years.
DENALI INVESTORS, LLCSponsor 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
The sponsorship contracts have an average length of over 10 years with approximately 3% average
annual escalators
Approximately 80% of the year one sponsorship revenue is already committed under contract
2016.04 Liberty Presentation
DENALI INVESTORS, LLCStadium 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 Cumberland Improvement District
■ $14m from other Cobb County funding sources
2016.04 Liberty Presentation
DENALI INVESTORS, LLCLease 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 exclusive right to use, manage
and operate SunTrust Park and the right to retain all revenues in connection therewith
▪ Braves rights include the rights to sell all tickets, merchandise, suites, concessions, sponsorships, advertising, naming
rights and all other revenue streams associated with SunTrust Park
License Fee
▪ Braves pay to the Authority an annual license fee of $3m and an additional $3.1m to the Authority which may be used by
the Authority solely to fund debt service on its bond debt for SunTrust Park
▪ Braves obligation to pay the $3.1m fee goes away when the bond debt is retired.
Capital Maintenance Fund
▪ Braves and Authority agree to fund capital repairs on SunTrust Park on a 50/50 basis subject to Authority cap
▪ Annual limit of $1.59m and aggregate limit of $35m over 30-year term on Authority’s obligations to fund capital repairs
Option to Purchase
▪ County does not have right to sell SunTrust Park without Braves’ consent
▪ During the Term, Braves have right to purchase SunTrust Park (subject to repayment of the County Bonds) from the
County at a to be negotiated price
▪ Braves also have option to purchase SunTrust Park at the end of the term for 50% of the then current fair market value
Non-Relocation
▪ In consideration of the rights granted to the Braves under the SOA, the Braves have agreed to play all of its home games
at SunTrust Park for 30 years
2016.04 Liberty Presentation
DENALI INVESTORS, LLCAtlanta Pro Stadiums
1
SunTrust
Park
5
4 3
2
DENALI INVESTORS, LLCMixed-Use Overview
DENALI INVESTORS, LLCMixed-Use Analysis
▪ 1.5m sqft at $558m, or $372 PSF
▪ Assuming NOI of $35m to $45m, or $23 to $30 PSF
▪ This implies a range of 6.3% to 8.1% returns*
▪ This implies attractive return levels on equity funding of $200m
DENALI INVESTORS, LLCThe 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 fans can enjoy throughout the year
▪ Potential for significant off-season revenue streams from major events that could be staged at
SunTrust Park including concerts, speeches and festivals
▪ The mixed-use community is planned to consist of:
▪ Up to 400,000 square feet of restaurant and retail space
▪ Approximately 600 upscale residences
▪ A 265-room hotel
▪ A nine-story Comcast office tower that will employ more than 1,000 individuals
2016.04 Liberty Presentation
DENALI INVESTORS, LLCOther Mixed-Use Projects 2016.04 Liberty Presentation DENALI INVESTORS, LLC
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 Partner
▪ Entertainment Venue – 100% Braves
▪ Liberty Braves will fully consolidate the majority owned JVs* and back out minority interest
▪ Project will deliver in phases with assets to the east and center of the mixed use developed
earlier than those furthest west or ancillary to the main site
▪ Project stabilization is projected by the end of 2017
▪ Ballpark presence limits vacancy risk over the life of the project
▪ Master Declarations and Covenants provide development wide common-area operational
control and governance for the life of the project
▪ Jeremy Strife and the current Braves executive team tasked with overseeing the
development and working with JV partners
* Excludes Hotel Joint Venture which will be accounted for as an equity method investment.
2016.04 Liberty Presentation DENALI INVESTORS, LLCThe Battery Atlanta Plan Site
2016.04 Liberty Presentation
DENALI INVESTORS, LLCThe Battery Atlanta Aerial
2016.04 Liberty Presentation
DENALI INVESTORS, LLCKey Tenants and Partnerships
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 partnership
announced their plans to develop a new hotel in the
▪ Regional headquarters for Comcast
mixed used development
▪ Serve as Comcast’s primary technology hub ▪ Omni to operate hotel and receive management fee
▪ 15-year lease with 1000+ employees
▪ Deliver multi-terabit network capabilities to SunTrust Park ▪ Luxurious Omni property will be a full-service hotel and
and surrounding community will serve as a cornerstone of the mixed-use community
▪ The most technologically advanced mixed-use
▪ 16 floors
development in the U.S
▪ Approximately 265 guest rooms and suites
▪ Rooftop hospitality suites
▪ Approximately 12,500 square feet of meeting space
▪ Elevated pool deck and bar overlooking the plaza and ballpark
▪ Signature restaurant
2016.04 Liberty Presentation
DENALI INVESTORS, LLCKey Tenants and Partnerships (cont’d)
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 venue, including the 53,000 sq. ft. Roxy Theatre
▪ Standing room-only capacity for up to 4,000 guests
▪ Feature about 40 music and comic shows annually
▪ 15-year net lease
▪ Space doubles as private event space for tradeshows, conferences, weddings, etc.
▪ Additional 80,000 sq. ft. of office space located in Entertainment Block next to Roxy Theatre
▪ Parking deck to support users of entertainment venue and adjoining office building and Ballpark for game day use
2016.04 Liberty Presentation
DENALI INVESTORS, LLCKey Tenants and Partnerships (cont’d)
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 apartments
▪ Soft goods, Fashion brands ▪ Each building has 1 floor of retail under 5 floors of
▪ Food and Beverage residential
▪ First wave of restaurants announced October 2015: ▪ Retail construction and leasing handled by retail JV
• Antico Pizza partner
• Cru Food and Wine Bar ▪ Separate parking decks included for each building
• Tomahawk Taproom featuring Fox Bros. Bar-B-Q
• Superica
• Steakhouse concept with chef Linton Hopkins
2016.04 Liberty Presentation
DENALI INVESTORS, LLCExperienced Development Team
2016.04 Liberty Presentation
DENALI INVESTORS, LLCThe 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, live work play
environments
Residential: Pollack Shores
▪Regional multifamily development firm specializing in suburban core and urban infill
projects.
Office: Pope and Land
▪Regional office development firm with deep Cobb County experience and connectivity
Project Architect: Wakefield Beasley
Project architect with deep experience in suburban core,mixed use, live work play design
▪
Design Architect: Beyer Blinder & Belle
Design Architect for the Plaza. Renowned New York architects known for their outdoor
▪
design projects.
Hotel: Omni Hotels and Resorts
▪ 50/50 Partnership with Omni
▪ Design Architect is C+TC
2016.04 Liberty Presentation
DENALI INVESTORS, LLCThe 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
▪Civil design for overall development including ballpark
Construction Partners
▪ Retail/Residential: Juneau Construction Company
▪ Stand-alone Retail: Batson-CookCompany
▪ Horizontal Improvements: American Builders 2017
▪ Hotel: Brasfield & Gorrie
▪ Office: Brasfield & Gorrie
▪ Entertainment Block: TBD
▪ Landscape, Hardscape, Site Improvement: TBD
▪ Stand-alone Parking Structure: American Builders 2017
2016.04 Liberty Presentation
DENALI INVESTORS, LLCSTP Surrounding Area
DENALI INVESTORS, LLCMall Analysis
13
9
6
10 12
SunTrust
4
Park
1
2 3
7
8
5
11
DENALI INVESTORS, LLCCumberland Mall Analysis
DENALI INVESTORS, LLCCumberland Mall Analysis (cont’d)
DENALI INVESTORS, LLCGalleria Specialty Mall Analysis
DENALI INVESTORS, LLCGalleria Specialty Mall Analysis (Cont’d)
DENALI INVESTORS, LLCHotel Analysis
DENALI INVESTORS, LLCGalleria: Hotels
DENALI INVESTORS, LLCPrecedent Comps
DENALI INVESTORS, LLCPrecedent Comps
Publicly Traded US Teams
DENALI INVESTORS, LLCTypes of Public Ownership
▪ Since the late 1990’s there have been several cases of professional sport franchises issuing
initial public offerings (IPOs) to the general public
▪ The issuances of such IPOs have been carried out in a variety of ways:
▪ Publicly traded teams
▪ General corporate ownership
▪ Community-based ownership
A Financial Analysis of Publicly Traded Professional Sports Teams, Senior Honors Theses, May 2011
DENALI INVESTORS, LLCGeneral Corporate Ownership
It has become commonplace for public corporations to purchase sports franchises in the NBA,
MLB, and NHL. In this case, the sports teams are just a fraction of the corporations overall
operations
Comcast Corporation (CMCSA)
▪ In 1996 CMSA purchased the Philadelphia 76ers and Philadelphia Flyers (76ers were sold in
2011)
Cablevision System Corporation (CSC + MSG + MSGN)
▪ Madison Square Garden, Inc., which is traded on the NASDAQ under the ticker symbol MSG,
has a portfolio of investments that includes three segments: MSG Media, MSG Sports, and
MSG Entertainment
▪ In 1997, the company purchased the New York Knicks and New York Rangers to add to their
MSG Sports segment
A Financial Analysis of Publicly Traded Professional Sports Teams, Senior Honors Theses, May 2011
DENALI INVESTORS, LLCCommunity-Based Ownership
▪ This ownership style takes place when non-marketable securities are sold to the public and the community
owns the majority of the shares. The term non-marketable securities means that the shares cannot be
traded and owners are not allowed to make a profit from them
▪ Green Bay Packers
The Green Bay Packers are very unique in that they are the only American professional sport franchise to be
owned by individual shareholders
▪ Since 1923 they have been a publicly owned, non-profit organization that is now owned by 112,158
stockholders holding a total of 4,750,937 shares
▪ Stockholders do not receive any dividends or preferential treatment for their ownership and support
of the team
▪ Stockholders do have the right to vote for the members of the board of directors which in turn elects a
seven member executive committee
▪ Individual shares can only be accumulated by purchasing them during an IPO or in the case of
inheriting shares from a death in one’s immediate family
▪ Throughout their history, the Green Bay Packers have carried out four stock sales: 1923, 1935, 1950,
and 1997. The most recent sale was of roughly 120,000 shares at $200 per share, raising over $24
million for the team. This large influx of capital ensured that the team would stay afloat for the next 25
years
A Financial Analysis of Publicly Traded Professional Sports Teams, Senior Honors Theses, May 2011
DENALI INVESTORS, LLCPublicly Traded Teams
▪ A stock market team is one in which the revenue and profits generated by that team are the
primary source of revenue for the corporation that owns that team
▪ These corporations issue marketable securities to the public which are traded on NYSE,
NASDAQ, or other stock markets
▪ Three teams that can be classified as publicly traded teams are:
▪ The Boston Celtics of the National Basketball Association (NBA)
▪ The Cleveland Indians of Major League Baseball (MLB)
▪ The Florida Panthers of the National Hockey League (NHL)
A Financial Analysis of Publicly Traded Professional Sports Teams, Senior Honors Theses, May 2011
DENALI INVESTORS, LLCBoston Celtics (BOS)
▪ The Boston Celtics carried out a public offering in 1986 in which 40% of the team was put up
for sale to the public by its three general partners:
▪ Don Gaston
▪ Alan Cohen
▪ Paul Dupee
▪ Investors purchased the shares in the master limited partnership at an IPO price of $17.50
per share on the New York Stock Exchange (NYSE) under the ticker symbol BOS
▪ In 1998, following the expiration of the tax advantages available to the master limited
partnership, the Celtics partnership was reorganized into two entities:
▪ A public limited partnership, taxable as a corporation
▪ A private limited partnership
▪ Units of the new public partnership continue to be listed for trading on the NYSE until 2002
when the team was fully purchased by private investors
A Financial Analysis of Publicly Traded Professional Sports Teams, Senior Honors Theses, May 2011
DENALI INVESTORS, LLCCleveland Indians (CLEV)
▪ In 1998, owner of the Cleveland Indians, Richard E. Jacobs, sold four million shares of stock at
$15 per share to raise $60 million
▪ Jacobs retained all voting rights for the team and offered no benefits in regards to dividends
or preferential ticket treatment
▪ The company did not plan to pay any dividends or compensate shareholders in any similar
manner
▪ The team was then sold in 2000 for $320 million at $22.61 per share
A Financial Analysis of Publicly Traded Professional Sports Teams, Senior Honors Theses, May 2011
DENALI INVESTORS, LLCFlorida Panthers (PUCK, PAW)
▪ In 1996 Florida Panthers Holding Inc. carried out an IPO that constituted nearly 6 million
shares and 49% ownership of the franchise
▪ The price of the IPO fluctuated between $10 and $12 dollars per share on NASDAQ under the
ticker symbol PUCK and generated $67.3 million
▪ Owner: Wayne Huizenga (Waste Management; Blockbuster)
▪ The IPO was structured in such a way that investors were required to purchase a minimum
of 100 shares of the Class A Common Stock and could not purchase more than 1,000 shares
▪ In the summer of 1997, Huizenga instituted another IPO of Class A Common Stock; shares
were to be traded on the NYSE under the ticker symbol PAW
▪ Soon after the IPO, Florida Panthers Holding Inc. began purchasing hotels and resorts and
moved from being a stock market team to more of a general corporate ownership entity
A Financial Analysis of Publicly Traded Professional Sports Teams, Senior Honors Theses, May 2011
DENALI INVESTORS, LLCPrecedent Comps
A Financial Analysis of Publicly Traded Professional Sports Teams, Senior Honors Theses, May 2011
DENALI INVESTORS, LLCPrecedent Comps
A Financial Analysis of Publicly Traded Professional Sports Teams, Senior Honors Theses, May 2011
DENALI INVESTORS, LLCPrecedent Comps
A Financial Analysis of Publicly Traded Professional Sports Teams, Senior Honors Theses, May 2011
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