Liberty Media CEO Says Bally Sports Is Paying for Atlanta Braves Rights After Chapter 11 Bankruptcy

Etan Vlessing
·2 min read
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Liberty Media CEO Greg Maffei is addressing the impact of struggles for regional sport networks on Major League Baseball teams, including his Atlanta Braves, which depend on local TV rights for a large share of revenues.

On an analyst call, Maffei said the Braves receive payments from regional sports network owner Diamond Sports Group, the Sinclair-affiliated parent company behind Bally Sports that recently filed for Chapter 11 bankruptcy, and the impact that has had on the value of the local Major League Baseball sports rights.

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“We’re blessed to have an incredibly strong territory — 14 million broadband households, a fan base that is very appreciative of a very successful team, and a reasonable deal on what we are paid by Diamond of by Bally,” he said after John Malone’s Liberty Media unveiled its second quarter financial results on Friday.

Diamond Sports recently chose to skip payments to the San Diego Padres and a handful of other team broadcasts, and Maffei didn’t expect the Braves would be next.

“We think we are probably the most profitable RSN they have. Some of the other ones were at less attractive as territories or as fan bases, or relatively less attractive relative revenue to cost for Bally. And that’s why in the bankruptcy proceedings they were terminated by Bally,” Maffei continued.

He added the Braves expected to continue to be paid by Bally as both parties maintain contractual obligations, even as contingency plans were in place if that changed. There’s speculation Diamond Sports will look for deals to reduce payments to unprofitable teams or scrap them altogether as it looks to emerge from bankruptcy protection.

That could mean local Braves TV rights could become available to others, including as part of a new business model involving streamers or other media platforms, if Bally does not maintain contractual payments.

“I don’t anticipate that will happen for us. But if it does happen, there will be other alternatives because of the strength of our product and the demand in our territory that will generate for us positive returns,” Maffei argued. Diamond operates 19 RSNs under the Bally Sports brand name, with games from more than half of all MLB, NBA and NHL teams.

In addition, on July 18, Liberty Media completed a planned split-off of the Braves and related assets into a separate public company, Atlanta Braves Holdings.

During the three months to June 30, overall revenue for Atlanta Braves Holdings grew 8 percent to $270 million in the second quarter, with baseball revenue rising 8 percent to $255 million.

Liberty Media — which owns audio entertainment powerhouse SiriusXM, the Atlanta Braves baseball team and the Formula One racing circuit — posted overall revenue dipping only 0.18 percent to $2.25 billion for the second quarter.

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