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Thread: Does Liberty want Braves just for tax write off?

  1. #1
    Hall of Famer ATLien's Avatar
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    Does Liberty want Braves just for tax write off?

    http://www.ajc.com/sports/content/sp...ravessale.html

    Will Major League Baseball approve Time Warner's proposed sale of the Braves to Liberty Media? AJC sports business reporter Tim Tucker explores the pros and cons.
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    YES
    1. The stability of keeping current management
    This is the best thing the deal has going for it in baseball's view — the expectation that Liberty Media would retain and empower current management. Team president Terry McGuirk, general manager John Schuerholz and manager Bobby Cox are highly regarded by baseball commissioner Bud Selig, whose support is essential to getting approval from the required 75 percent of owners. If Liberty can convince Selig that McGuirk will lead the team for years to come and that the franchise will have stability, the deal gets a running start on approval.
    2. $450 million
    Sports leagues have a vested interest in seeing franchises sell for premium prices, because such sales can drive up the value of other teams. And $450 million — the value attached to the Braves in the tax-free stock swap between Time Warner and Liberty — is generally considered top dollar for the Atlanta team, which Forbes magazine valued at $405 million a year ago.
    3. Playing ball with Time Warner
    Baseball has a long and good relationship with Time Warner's Turner Broadcasting, including a rich new TV deal that puts postseason games on TBS starting this year. Time Warner very much wants the transaction with Liberty to go through, and it might be hard in the end for MLB to say no to a loyal business partner.
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    NO
    1. The instability of potentially short-term ownership
    This is Liberty's biggest challenge: convincing baseball that it would hold onto the Braves beyond the minimal period (two or three years) required for tax purposes. Liberty was drawn to the deal by the lure of hundreds of millions of dollars in tax savings — a notion that neither shocks nor offends MLB. But Selig cherishes stability and presumably is going to want assurances from Liberty that the Braves won't be back on the block ASAP. If baseball doesn't find some degree of comfort on this point, approval could be hard to obtain.
    2. Out-of-town corporate ownership
    When selling the Washington Nationals a year ago, MLB extolled the virtues of local family ownership. Now it is being asked to approve the sale of a marquee franchise to an out-of-state corporation with no strong ties to Atlanta. The deal also bucks a trend away from ownership of sports teams by publicly traded media companies, a 1990s fad generally considered a failure.
    3. Who are those guys?
    The buyer is a complicated company with a penchant for complicated deals. MLB likely will raise issues requiring delicate negotiation, and it'll want to get to know Liberty chairman John Malone and CEO Greg Maffei. If the chemistry isn't right, MLB could decide not to let them into its owners' club for purely subjective reasons.

  2. #2
    Hall of Famer DravenX's Avatar
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    What will happen if MLB don't approve the deal? I'm assuming TW will still look for an owner?
    "For someone who was never meant for this world, I must confess I'm suddenly having a hard time leaving it. Of course, they say every atom in our bodies was once part of a star. Maybe I'm not leaving... maybe I'm going home."

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