Braves agree to 3-year extension with Chris Johnson

[50PoundHead]

I file your input under T.

T for "Terrific" I hope.

[NYCBrave]

Liberty Media CEO Greg Maffei scoffed when a Wall Street analyst recently suggested to him that the Braves are worth about $650 million, which is $200 million more than the company paid for the team seven years ago.

"Oh, that's way light," Maffei replied.

He added: "If you've got another Braves to sell me at 650, I'll buy them, let's put it that way."

"Not only were they part of a tax-oriented transaction with Time Warner," Maffei said, "but the reality is two big upticks -- a re-cut TV deal for a bunch of reasons and a new stadium -- both are very helpful in increasing value for the Braves."

The Braves' revenue increased by $36 million to $261 million last year, following a $17 million increase in 2012, according to Liberty's financial filings with the Securities and Exchange Commission. The Braves' operating income (revenue minus operating expenses) before depreciation, amortization and certain special charges increased by $20 million to $42 million last year, according to the filings.

Can someone shed some light on the restructured TV deal? Did we get out of that horrid deal we had?

[thethe]

Liberty Media CEO Greg Maffei scoffed when a Wall Street analyst recently suggested to him that the Braves are worth about $650 million, which is $200 million more than the company paid for the team seven years ago.

"Oh, that's way light," Maffei replied.

He added: "If you've got another Braves to sell me at 650, I'll buy them, let's put it that way."

"Not only were they part of a tax-oriented transaction with Time Warner," Maffei said, "but the reality is two big upticks -- a re-cut TV deal for a bunch of reasons and a new stadium -- both are very helpful in increasing value for the Braves."

The Braves' revenue increased by $36 million to $261 million last year, following a $17 million increase in 2012, according to Liberty's financial filings with the Securities and Exchange Commission. The Braves' operating income (revenue minus operating expenses) before depreciation, amortization and certain special charges increased by $20 million to $42 million last year, according to the filings.

This is why I have said in the past that we have no clue what the payroll is going to be. I think what all these extensions are saying is that the organization is comfortable that the future payroll will increase dramatically. It would not shock me if the Braves end up having a payroll around 13-140 by the time they move into the new stadium.

[GovClintonTyree]

There you go. Something happened to that tv deal in a positive way for the Braves. Braves officials don't want it out there cause they don't want our players' agents to know about it. jmo.

Yeah, I didn't know about this (the 40 game thing was just rearranging deck chairs on the Titanic).

This is a rather huge development. And if, in fact, the Braves were keeping that fact (and those terms) close to the vest, I wonder how they feel about Maffei spilling the beans.

Lolololololol! That's hysterical. Thanks, Boss.

[Hawk]

Buster_ESPN: Chris Johnson's deal with ATL: $23.5 million over three years, with a $10 million option.

$7.83MM AAV. Could really go either way. I wonder if there's a buyout.

[Hawk]

Yeah, I didn't know about this (the 40 game thing was just rearranging deck chairs on the Titanic).

This is a rather huge development. And if, in fact, the Braves were keeping that fact (and those terms) close to the vest, I wonder how they feel about Maffei spilling the beans.

Lolololololol

They could get him to offset the difference. Dude makes $90MM per year! WTF!

[The Chosen One]

What the 40 games were, were the Peachtree TV (Atlanta Local TBS turned into PTV) broadcasts. They were sold to Fox Sports and Sportsouth after the 2010 season (the last of Ernie Johnson Jr. and Smoltz calling games).

The amount was never announced, but that's it.

We're still stuck in that terrible deal with FSS/Sportssouth that's not over until I believe 2022?

[Hawk]

This is why I have said in the past that we have no clue what the payroll is going to be. I think what all these extensions are saying is that the organization is comfortable that the future payroll will increase dramatically. It would not shock me if the Braves end up having a payroll around 13-140 by the time they move into the new stadium.

Exactly. If revenue continues to increase, combined with MLB (and regional) TV income, stacked with all of the financial accoutrement of a new stadium, Atlanta is sitting in the catbird seat. It's a good time to be a Braves fan.

[gilesfan]

Buster_ESPN: Chris Johnson's deal with ATL: $23.5 million over three years, with a $10 million option.

$7.83MM AAV. Could really go either way. I wonder if there's a buyout.

Ouch

[cajunrevenge]

Thats about as fair of deal as can be expected. Johnson was going to make a lot in arbitration because he was a super 2 and goes thru the process 4 times.

[gilesfan]

$10 MILLION PER YEAR.. LOOK AT MY BATTING AVERAGE!

[The Chosen One]

This isn't a Turner Field deal. The City built Turner Field and gave it to the Braves for free (Braves do lease it).

The Braves are funding most of this stadium, and I assure you it will not all be paid off by the first pitch at the new park. They'll still be paying for the stadium a few years after it opens, which is what most privately funded ballparks do.

[nsacpi]

Buster_ESPN: Chris Johnson's deal with ATL: $23.5 million over three years, with a $10 million option.

$7.83MM AAV. Could really go either way. I wonder if there's a buyout.

Something like 6M, 7M, 10M. With the 10M option. I don't think Johnson will age particularly well. I would expect WAR of 2, 1.5, 1 over 2015-2017. It isn't an awful deal. But not a bargain either. It would be nice if Justin Upton approached the club about an extension.

[nsacpi]

Thats about as fair of deal as can be expected. Johnson was going to make a lot in arbitration because he was a super 2 and goes thru the process 4 times.

He's making 4.75M this year. I would guess his arb numbers the next two years would have been 6.5 and 8.5. He is giving us a discount relative to those numbers. But in exchange he gets the security. And he gets about 10M in his first post-arb season. That is his age 32 season. Obviously the deal turns on how you think he ages. Every player is different in that regard. But the slower, less athletic players tend to age worse. Also the guys who get to the majors at a relatively late age also tend to age worse.

[NinersSBChamps]

Like anyone anyone actually wants to live in Minnesota. It took 24 million a year to convince Mauer to stay and its his home state.

Pretty sure the Yankees could have matched or offered more anyway. Minnesota as a state has zero to do with it.

[thewupk]

Something like 6M, 7M, 10M. With the 10M option. I don't think Johnson will age particularly well. I would expect WAR of 2, 1.5, 1 over 2015-2017. It isn't an awful deal. But not a bargain either. It would be nice if Justin Upton approached the club about an extension.

I suspect some of the 23.5 million is either in a signing bonus or buyout too.

[nsacpi]

I suspect some of the 23.5 million is either in a signing bonus or buyout too.

That part is unlikely to be much more than 1M.

[50PoundHead]

Pretty sure the Yankees could have matched or offered more anyway. Minnesota as a state has zero to do with it.

I think Mauer did give the Twins a bit of a discount (at least that's the impression here in Minnesota). He's a Minnesota kid (and a really nice guy) and Hrbek (also a Minnesota kid) gave the the Twins a hometown discount (and he was pretty public about it while Mauer wasn't). The press rides him here a bit in Minnesota, but the New York press would crucify the guy because he's one of those players who doesn't appear to like to play when he's nicked up even a little bit.

[thewupk]

That part is unlikely to be much more than 1M.

Maybe, maybe not but it has been the Braves MO to have one or the other or both in their recent string of extensions. I think it's a fair deal overall.

[cajunrevenge]

He's making 4.75M this year. I would guess his arb numbers the next two years would have been 6.5 and 8.5. He is giving us a discount relative to those numbers. But in exchange he gets the security. And he gets about 10M in his first post-arb season. That is his age 32 season. Obviously the deal turns on how you think he ages. Every player is different in that regard. But the slower, less athletic players tend to age worse. Also the guys who get to the majors at a relatively late age also tend to age worse.

I think your arb projections are a bit low. Obviously his performance this year will impact it but I think he gets more than a 1.75 mill raise over this year. I think 7 mill for 2015 is more accurate then 10 million give or take 500k based on performance. Just being an everyday player gets a player a healthy raise because at bats are part if the formula used. Then all these big contracts given out cause arbitration numbers to inflate as well.