Atlanta Braves Holdings Provides Corporate Governance Update

Rhea-AI Summary

Atlanta Braves Holdings announced significant corporate governance updates. Terry McGuirk, Chairman and CEO of Braves Holdings, , has entered into shareholder arrangements with Dr. John Malone. Malone granted McGuirk a proxy to vote 887,079 shares of Series B Common Stock, representing 44% of the company's voting power, on key matters. McGuirk also received a right of first refusal on future transfers of Malone's shares and certain appreciation rights.

These changes aim to align voting and operational control with the baseball franchise's management. As part of the transition, most current officers, including Greg Maffei, will step down, with Braves operating team officers assuming these roles by the end of August. The company will also transition various administrative services from Liberty Media to Atlanta Braves Holdings management.

Positive

• Terry McGuirk gains significant voting power (44%) through proxy agreement with John Malone
• McGuirk receives right of first refusal on future share transfers and appreciation rights
• Alignment of voting and operational control with baseball franchise management
• Transition of administrative services from Liberty Media to Atlanta Braves Holdings management

Negative

• Departure of current officer slate, including Greg Maffei, by the end of August

Insights

Corporate Governance Expert

This corporate governance update for Atlanta Braves Holdings is significant. The proxy voting arrangement between Terry McGuirk and John Malone, transferring 44% of voting power, represents a major shift in control. This move aligns operational control more closely with the baseball franchise management, potentially streamlining decision-making processes. The right of first refusal and appreciation rights granted to McGuirk further solidify his position and incentivize performance. Key implications include:

• Increased autonomy for Atlanta-based management
• Potential for faster strategic execution
• Stronger alignment between management and shareholder interests

However, investors should monitor how this concentration of power impacts corporate checks and balances.

Sports Business Analyst

This governance change signals a vote of confidence in Terry McGuirk's leadership and the Braves' current trajectory. The transition from Liberty Media's oversight to more localized control could lead to:

• Faster decision-making on baseball operations and development projects
• Potentially increased investment in team and infrastructure
• Enhanced focus on local market strategies

The Braves' strong financial profile and loyal fan base provide a solid foundation for this transition. However, the loss of Liberty Media's broader corporate expertise could pose challenges. Investors should watch for any shifts in financial management or strategic direction in the coming quarters.

Financial Analyst

This governance update has several financial implications:

• Ownership structure: John Malone retains significant ownership (47.5% voting power) while delegating control, maintaining his economic interest.
• Management incentives: McGuirk's new appreciation rights align his interests more closely with share performance.
• Operational transition: The shift of administrative services from Liberty Media to Atlanta Braves Holdings may impact short-term costs but could lead to long-term efficiencies.

While this move could streamline operations, investors should monitor for any changes in financial strategy or capital allocation. The transition period may bring short-term volatility, but the long-term impact on shareholder value will depend on the new management's execution.

ATLANTA--(BUSINESS WIRE)-- Atlanta Braves Holdings, Inc. (“Atlanta Braves Holdings” or the “Company”) (Nasdaq: BATRA, BATRK) announced today updates to voting and governance arrangements at the Company.

Terry McGuirk (“McGuirk”), Chairman and CEO of Braves Holdings, LLC, the parent company of the Atlanta Braves and the Braves Development Company, has entered into certain shareholder arrangements with Dr. John Malone (“Malone”), pursuant to which Malone has granted McGuirk a proxy to vote 887,079 shares of the Company’s Series B Common Stock owned by Malone, representing 44% of the Company’s outstanding voting power, on director elections, the approval or authorization of executive compensation and other routine matters. Malone has also granted McGuirk a right of first refusal with respect to future transfers of the Company shares beneficially owned by Malone as well as certain appreciation rights with respect to the value of Malone’s Series B shares. These arrangements, which have been approved by Major League Baseball, will be described in further detail in filings to be made with the SEC by Malone and McGuirk.

“Terry has done a phenomenal job running the Braves organization, and I have tremendous faith in the work he and the rest of the Braves management team are doing,” said John Malone. “I want to thank Greg for his contributions to the Braves’ financial and strategic growth since Liberty’s acquisition in 2007, including the maturation of the business into a standalone public company. These arrangements will better align the routine voting and operational control of Atlanta Braves Holdings with the management of the baseball franchise and give Terry the opportunity to share in the value that he and the management team continue to create for shareholders, fans and the local community.”

“I am incredibly grateful to John for this opportunity and for the trust he has continuously placed in me and the Braves management team,” McGuirk said. “This transaction is a testament to the work our management team has been doing with the Braves organization in Atlanta, and the belief that John has in us to keep executing on our plan and driving shareholder value.”

“The Braves benefit from a large and loyal fan base, a talented young team and a solid financial profile. The formation of Atlanta Braves Holdings as a public company in July 2023 has enabled us to better highlight the value of this strong asset. This action is the final step in its progression as a standalone public company, and the Atlanta-based management team is well-equipped to take on the full operations and drive long-term returns for our shareholders,” said Greg Maffei, President and CEO of Atlanta Braves Holdings.

Atlanta Braves Holdings and Liberty Media Corporation (“Liberty Media”) intend to begin transitioning various general and administrative services currently provided by Liberty Media to the management of Atlanta Braves Holdings, including legal, tax, accounting, treasury, information technology, cybersecurity and investor relations support. As part of that transition, almost all of the current officer slate of the Company, including Mr. Maffei, will be stepping down, with the current officers of the Braves operating team assuming these roles at the end of August.

As of July 31, 2024, Malone beneficially owns approximately 96 thousand shares of Series A common stock, 946 thousand shares of Series B common stock and 3.0 million shares of Series C common stock in Atlanta Braves Holdings, representing approximately 47.5% of the Company’s voting power.

About Atlanta Braves Holdings, Inc.

Atlanta Braves Holdings, Inc. (NASDAQ: BATRA, BATRK) consists of 100% of the ownership and voting interest in Braves Holdings, LLC, which is the owner and operator of the Atlanta Braves Major League Baseball Club and the mixed-use real estate development, The Battery Atlanta, and is the operator of the Atlanta Braves Major League Baseball Club’s stadium, Truist Park.

Forward-Looking Statements

This communication includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws. These forward-looking statements generally can be identified by phrases such as “possible,” “potential,” “intends” or “expects” or other words or phrases of similar import or future or conditional verbs such as “will,” “may,” “might,” “should,” “would,” “could,” or similar variations. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These forward-looking statements speak only as of the date of this communication, and Atlanta Braves Holdings expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Atlanta Braves Holdings’ expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Atlanta Braves Holdings, including in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as such risk factors may be amended, supplemented or superseded from time to time by Atlanta Braves Holdings’ subsequent filings with the SEC, for additional information about Atlanta Braves Holdings and about the risks and uncertainties related to Atlanta Braves Holdings’ business which may affect the statements made in this communication.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240822090477/en/

Atlanta Braves Holdings, Inc.

Investor Contact

Shane Kleinstein

720-875-5432

Braves Media Contact

Jennifer Mastin Giglio

404-614-1336

Source: Atlanta Braves Holdings, Inc.

FAQ

What changes in voting power occurred for Atlanta Braves Holdings (BATRA)?

Terry McGuirk received a proxy from John Malone to vote 887,079 shares of Series B Common Stock, representing 44% of the company's voting power, on key matters such as director elections and executive compensation.

How will the management structure of Atlanta Braves Holdings (BATRA) change?

Most current officers, including Greg Maffei, will step down by the end of August 2024. Officers from the Braves operating team will assume these roles, aligning operational control with the baseball franchise management.

What additional rights did Terry McGuirk receive in the Atlanta Braves Holdings (BATRA) update?

McGuirk received a right of first refusal on future transfers of John Malone's shares and certain appreciation rights with respect to the value of Malone's Series B shares.

How will administrative services change for Atlanta Braves Holdings (BATRA)?

The company will transition various general and administrative services, including legal, tax, accounting, and investor relations, from Liberty Media to Atlanta Braves Holdings management.